Two Questions of Stock Accuracy

A worker counting the ready products stacked on the shelves in a factory storeroom.

Any company that hopes to have a continuously-accurate shelf count that matches its record count needs to prevent all unauthorized personnel from physically interacting with stockroom/warehouse contents. Further, personnel who are authorized must have a paper- or computer-based document before placing anything into (or removing anything from) storage areas. These two points are crucial to the maintenance of inventory accuracy.

Often, items’ physical lives in storage become separated from their paper/record lives, and people begin to ship or use products that have not been received, or put away products that have not been received so that no one knows that they are available for sale or use. These improprieties create an environment where inventory personnel and accounting personnel are making numerous adjustments to the record count. In a sound system, its design and processes must immediately disallow such occurrences.

In advance of the implementation of methods to reveal, analyze, and repair any discrepancies between actual on-hand inventory levels and system record levels, you must take a precise snapshot of the current state of inventory. Two sets of numbers are needed for the assessment to be both useful and accurate: 1) An inventory record accuracy (IRA) and (2 The Fill Rate.

IRA is a reflection of how well your shelf count and record count match. It answers the question of how well your stock records reflect the stockroom’s actual contents.

The Fill Rate is a reflection of the effectiveness of your inventory. It answers the question of how often you have inventory that you need at the moment you needed it.

These two questions can not only be applied when every stock count is performed but also may be applied at the level of every transaction. In fact, basing adjustments to your stock system on these two criteria can only help you achieve a more accurate and precise process. SIMMS Inventory Management software can help you make all the right decisions based on all the significant analyses it contains. For more information on SIMMS 2013, visit or email today.

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