How do you handle inventory discrepancies and errors?

In my experience working in a warehouse environment receiving product accurately first and foremost starts the process, if you receive inventory inaccurately from the start without correction immediately the process has already failed. FIFO is key which means (First In First Out) this is needed for rotation purposes especially if the inventory is a perishable warehouse.. This allows inventory rotation to prevent expiration and spoilage. Lastly but just as important cycle counting, this allows you to keep fast moving and slow-moving inventory on the forefront which allows fiscal decisions to be made sensibly.

Another cause of inventory discrepancies is the lack of attention to detail when pulling and shipping assets. Because of the simplicity of this task, people may become complacent in double-checking the item they have pulled for said order. Same as to putting the item in the wrong location when putting things away. I ensure I go through daily transactions so if these parts did get switched up, I could potentially catch the problem before it goes out or adjust the inventory before more issues arise. This process is a team effort, as multiple people usually handle parts. When errors go undetected, it raises a question about which procedures are being skipped and how to remind employees of the importance of their attention to detail.

In order to handle inventory discrepancies and errors, the first step is to identify the potential sources of the problem. Human errors, such as miscounting or mislabeling, may be at fault, as well as damaged or defective items. Theft or fraud, system errors, and external factors such as weather or transportation could also be the cause. By pinpointing the root of the issue, it is possible to take appropriate measures to fix it and ensure it does not happen again.

in my experience there should be a cycle count every morning and before getting off work. just saying?? check the SAP or POS system, and/or inventory counting every morning before starting your work everyday for accurate counts.??

Inventory discrepancy and errors started from the receiving points and also issueing the right quantity, size and sku's for dispatch. To solve and correct this you need to be up and doing at the point of receiving. Ensure there is proper check at the receiving points of your inventory, ensure what is received is the same thing with what you have on your receiving documents.( Check for quantity, sizes, and right product mix) if there is an error of product mix, it should be corrected immediately. A daily cycle count also help to keep inventory in check, at the end of the daily business or before the start of a day activities, a check should be done to know if you have accurate inventory.

In WMS system, activating zero stock check (asking picker to verify bin is empty when system record shows it is empty ) is one more way to improve your inventory accuracy.

I found that being married to your process and let it be the “boss,” has helped my operations. Making sure everyone has the same commitment and competence to the processes involved within the operation. When an error happens I was usually able to find the missing step within the process in which would clearly show us where we went wrong during the flow. Also, when everyone is using the same processes you have an undeniable back up of data to show you what is correct “answer,” when a mistake is made. The data will also show how we can fix it before too much damage is done.

I have implementing the stock on pick check within WMS asking the picker to count remaining on location after pick and increased accuracy up to 99.98%

Correcting for the discrepancies is vital, and needs to be done in a timely manner so they don't cause issues down the line, and don't compound into a larger issue. This includes not just making changes to the inventory counts themselves, but also investigating and fixing the root causes themselves.

We have incorporated daily cycle counts with ABC assigned products and on top of that, we have assigned a person to perform random bin checks during the day and correct discrepancies as they are identified, our system records every transaction by user so that makes it easier to identify the source and address it to be corrected.

Investigating errors is key to making sure they do not happen again. Having a process to identify the errors and a process on identifying the cause is crucial. The investigator must physically look at the location where the error took place, put themselves into the thought process of the user that made the error and determine what may have caused the error. Some examples of this could be similiar items next to each other, items that are overstocked in the location next to it, receiving errors, and returns in the wrong location.

Simply discovering the root cause and correcting the discrepancy is not enough. The error and the subsequent countermeasure must be discussed in a start-of-shift huddle, weekly team meeting, or a stand-alone group discussion. The team needs to hear how the error was made and how it was corrected. In private, the associate who made the mistake must be coached on the root cause and the countermeasure. Another approach that should be incorporated is to take the error to the entire team to conduct the root cause analysis and development of the countermeasure. Just correcting the error will not drive continuous process improvement and improved inventory accuracy.

Adjust customs entries, if required through post summary correction. For articles that are imported, it is necessary to ensure that the entry matches the goods received. If not accurate, the company might pay too much or too little in duties, taxes and fees.

Actually to cover your bases you have to stage all incoming stock by counting, labeling and Staging by the invoice # rather than by part #. When you keep stock your asking for trouble. Sales should be written up and ordered directly from the manufacturer/plant, made, staged and loaded on outgoing trailers destined for the appropriate regions/warehouses. Once received count,stage and load onto outgoing trucks. Therefore eliminating the need for keeping stock and lowering significantly? discrepancy issues that come from holding inventory. Not to mention the man hours it takes when pulling orders from the warehouse.

To address inventory discrepancies and errors, it's crucial to implement regular audits, employ barcode systems, and use inventory management software. Timely reconciliation and clear documentation of discrepancies help identify and rectify issues efficiently. Additionally, fostering a culture of accountability among staff members can contribute to minimizing errors in the inventory process.