4.33(6)

Inventory Accuracy Management

Description

Why Inventory accuracy management is important?

If you discovered you only had $100 when you thought you had $1,000, you’d be alarmed.

If you run a business that sells physical goods, this same sentiment applies when you have a discrepancy in your actual inventory counts versus what you thought you had.

Managing inventory is plays an essential role in supply chain management, but it isn’t always easy. That’s why retail businesses must consistently track inventory records at the SKU level.

Even if you have a good track record with inventory accuracy, there are key things to consider to keep it that way. Read on to learn more about inventory accuracy and how to improve it.

What is inventory accuracy?

Inventory accuracy refers to any inconsistencies between the actual quantity or type of physical inventory and what is recorded or is supposed to be. In most cases, it is the difference between what’s recorded in an inventory management system and what you have available for sale in a store, warehouse, or storage location.

Why inventory accuracy matters?

Inaccurate inventory is obviously problematic as it can translate to incorrect customer orders, a shortage of product, theft, damages, loss for your business, or even trouble selling through what you have before it becomes obsolete.

But there are also implications on the accounting side that can cause more trouble for a business.

For example, inaccurate inventory can lead to inventory shrinkage when stock is less than the recorded balance in accounting records and can throw off your inventory valuation at the end of a financial year or accounting phase.

Inventory write-offs are when you remove or reduce the value of inventory or dead stock that has no value from their accounting records and can be used to rectify inaccurate inventory.

 

What Will I Learn?

  • What is Inventory accuracy?
  • What are the factors affecting it?
  • How to improve?

Topics for this course

10 Lessons2h 16m 31s

Session 1 What is Inventory accuracy & why it is required?

Introduction00:16:48

Session 2 Methods to measure

Session 3 excess inventory

Session 4 Benefits of lower inventory

Session 5 Improvements

Session 6 External storage & other methods

Session 7 People factor

Session 8 Authority

Session 9 Backflushing

Session 10 Cycle counting

About the instructor

I am a Supply Chain / Logistics / Sourcing Professional. Trainer and consultant. Worked in large MNCs in Supply Chain, Logistics for nearly 3 decades and have in-depth practical knowledge in each of the sub-domains Currently engaged in consultation, training and certification programs of world's leading Supply Chain Institutes. Also have our own job oriented programs. Sub domains includes Materials, Logistics, Supply Chain Analytics, Purchasing/Sourcing, Warehousing, Transportation, Inventory Optimization etc Saved in Millions for organisations, in Inventory optimizations and improved all related processes Improved customer fill rates and reduced cost of operations Solved work-place issues / problems in their occupation of Supply Chain professionals Specialties: Supply Chain Management, Logistics, Sourcing, Material Planning, Forecasting, Production scheduling, Warehouse management, Picking and line feeding, Logistics, Imports, exports, EOU, Lean, Operational Excellence, Productivity Improvement, employee & contractor management, Legal compliance ASCM, APICS, ISM
4.32 (139 ratings)

24 Courses

151 students

Student Feedback

4.3

Total 6 Ratings

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Keep on going! Excellent course too good to develop your skills.

very good courses. Learned basic knowledge of Inventory management. Very useful for beginners.

Love the way the trainer has explained in this program,easy to understand all topics

Even the course level is introductory for somebody like me with no previous experience in supply chain sourcing it's a very interesting and exciting course.

Good Examples and explanations using business cases

The course is well structured. Over met my expectations. Instructor is very well engaged and knowledgeable.

1,999.00

Material Includes

  • Videos

Requirements

  • Basic knowledge on Supply Chain Management

Target Audience

  • All levels of Supply Chain and Logistics Professionals working in Warehouses, Distribution centers, Fulfillment centers etc..
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