Is there a best way to measure Inventory accuracy? Probably not. It’s more likely that the accuracy of your inventory counts is heavily influenced by the volume and activity level found there.

It’s like comparing the error rate of a baseball shortstop with the rightfielder: The shortstop has far more chances to field and throw the ball cleanly, so the impact of an individual error is minimal.

On the other hand, the right-fielder might have only a couple of opportunities to handle the ball during a game. Blow one of those, and the criticism will be much harsher and the error percentage will be much higher.

The same applies to your inventory operation. The more volume you handle, the greater chance of damage to your accuracy efficiency. And you need to remember that a basic count is just a snapshot of a moment in time. Something can come along right away and change that picture.

That’s why it’s important to keep this in mind when deciding which method of counting is best for you.

Three of the most popular techniques for tracking inventory:

Physical count vs. system count. Counting what you have on shelves or in stock, and comparing that with your own records of comings and goings yields a “correctness” percentage.

Count accuracy based on location. This most popular with bin-based inventory systems. Tally the numbers of bins that are in the right locations and pit that against the number in the wrong locations. Again, you’ll determine a “correctness” percentage.

How many cooks making the soup? Does your inventory have to pass through a few sets of hands on the way to its location? The more “touches” on your inventory, the greater the opportunity for human error to be introduced into the process.

Tags: accuracy, counts, inventory, physical count