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An inventory accuracy best practices is irreplaceable for every business, mainly when customer demand and supply chain space are rapidly growing. Getting accurate predictions requires a mixture of data accuracy, experience in the industry, and actionable insights to break the clutter of uncertainty and predict future demand . Market forces can change quickly, and sometimes something as seemingly unimportant as a product placement by a social media influencer could clean out your stocks in seconds.
Inventory planning software is vital for global logistics, as it helps you optimize inventory accuracy best practices for your inventory levels, avoid stockouts or overstocks, and reduce costs and waste. However, how can you ensure that your plans and forecasts are reliable and accurate, especially in this uncertain and dynamic market? In this blog, we will analyze some of the best practices that can improve your inventory management and forecast accuracy and why accurate data is essential for predicting the future of your business.
Planning software can be a great asset in helping to manage availability and product demand effectively, but what happens if the data put into the system is incorrect? Or when that data leaks into other areas of operations?
Apart from preventing a planning solution from being used efficiently, inaccurate inventory data can influence other areas of operations, including store KPIs, spoilage, customer availability, and sales.
For example,
Data inaccuracies are not just restricted to affecting store operations. Minor discrepancies add up across a complete network of stores and can escalate into far more significant losses. This inventory inaccuracy can cause financial loss from lost sales or slow-moving products.
Manually updating these numbers by hand might be a temporary solution, but it negates the benefits of having an optimized inventory management software in the first place. Evaluating where the initial data collection process went wrong is an excellent first step when looking for a solution.
The inner consumption of store stock, such as bakeries or in-store cafes, should also be recorded cautiously. Unrecorded inventory stocks will indicate more stock held than actual physical stock numbers. This will make it impossible for you to zero in on the missing products and make your operations more difficult to run smoothly. To get inventory accuracy best practices, Inventory planning software automates this process and gives you real-time stock availability.
The timing of delivery and stock counts can significantly impact the data reflected in inventory levels. A brick-and-mortar store with a standard opening, closing, and delivery schedule might not have any issues. But a24-hour facility with uncertain delivery hours might miss inventory numbers in their day-to-day counts.
Trying to make a decision on this inaccurate data can cause uncertainties, so any actions regarding inventory counts must take place in a proper sequence.
Another area where inventory irregularities can happen is through mismanaged returns. You get an inaccurate return record when returned products are misplaced or coded incorrectly and returned to the stock. Effective inventory forecasting software ensures accurate reporting so you can make better decisions for future product demand.
Human error can escalate various data discrepancies at any point along the supply chain and significantly contribute to inaccuracy in inventory count, from errors in counting to scanning errors and mistakes in picking and placement.
One of the earliest ways to minimize human errors is to connect your business with inventory planning software so that you can assess your business operations and processing. It’s easy to access and keeps your inventory organized and properly maintained.
When it comes to inventory accuracy best practices, no magic wand or crystal ball can provide accurate planning and management. However, by regularly monitoring inventory turnover, stock counts, and other trends in your customers’ orders, you’ll be able to make decisions more effectively in the long and short term.
If you are currently using a spreadsheet-enabled inventory planning process, you are about to face issues with long processing times, data security, and data inaccuracy. Consider Avercast inventory planning software – with 280+algorithms, it is specifically designed to address these issues. With Avercast fused to your business, you can strategically plan on an enterprise-wide collaboration platform while remaining flexible enough to make changes at your business’s pace proactively.
