4 Common Causes of Inventory Errors and How to Prevent Them

2016-04-13_4-common-inventory-errorsUnreliable data caused by errors in inventory is one of the most common problems in warehousing and manufacturing and can have serious consequences for a business. It is therefore essential that companies identify where these errors are occurring and take steps to remedy them.

Here are some of the areas where inventory mistakes are likely to happen and some tips on how to fix them.

1.    Human Error

Human error often plays a big part in data problems. It is important to ensure that staff working on inventory at any point, such as receiving or packing, are trained to correctly manage and handle the stock. An inventory management system with handheld scanners can also help to reduce human error by automatically keeping track of stock.

2.    Manual ERP Input Errors

Manually inputting stock numbers into an ERP makes errors extremely likely. Here again, an inventory management system that integrates directly to the ERP in real-time will keep inventory numbers up to date at all times, improving accuracy and reducing the likelihood of errors.

3.    Location errors

Misplaced inventory often occurs when stock is placed incorrectly. This can be remedied by establishing a single location for each stock item and limiting exceptions. Tracking software that tags each item with a barcode can also help to locate inventory as it moves from one location to the next.

4.    Receiving errors

Sometimes errors occur when receiving inventory. Whether the shipment itself was incorrect or the inventory was incorrectly checked, it is important to double check incoming stock to ensure you are receiving what you were expecting. The same applies to dispatching – it is imperative to double check the item going out against the order placed to avoid inventory going missing. Barcode labelling can help in both cases.

The benefits of accurate inventory data

Gaining visibility and control of your inventory levels helps to reduce write-offs, eliminate stock-outs, and decreases time spent searching for inventory. All of this improves business function and ultimately the bottom line.

TransLution™ Software utilises barcode scanners to send data directly to the business ERP.  If you would like to know more about how TransLution™ Software can reduce inventory errors and improve productivity and traceability, please contact us.


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