Managing inventory in a retail business is challenging. Retailers record hundreds of sales, returns, reorders, and receipts daily.  

Keeping track of all these details may not be easy. Maintaining accurate inventory is a common challenge for retailers, even if the quantity of SKU (stock-keeping unit) is low. However, it is a necessary step that helps keep customers happy. 

Only higher accuracy ensures running an efficient and smooth inventory management system for your business.  

This blog will explain why inventory accuracy is crucial for improved operations and overall business success. 

Why is Accuracy Important for an Efficient Inventory Management System? 

Inventory accuracy shows the percentage of actual stock levels to the digitally recorded stocks. This gives you the real-time stock levels at a given time.  

Tracking this metric carefully helps you manage your inventory and maintain in-demand products.  

Here are some top reasons you should keep an eye on this metric.  

1.Reduced Missed Sales 

Poor inventory accuracy can cause products to run out and sales to be missed. No business wants to witness people choosing their competitors because of this. 

So, avoiding relying on memory or visiting the warehouse to find out-of-stock items is better. 

Using an up-to-date stock report via an inventory management system helps: 

• Quickly reorder products with low units. 
• Avoid overstocking products, especially what’s not selling. 
• Maintain a fine balance of each product. 

2.Detecting Issues When it Matters 

Correct details on inventory levels can help you spot problems immediately and avoid realising them many months later when you prepare an annual stock report.   

Imagine if this late reporting costs a lot of money for holding unnecessary items or missing on sales.    

It is a common mistake as some items can get overlooked, or your staff can make mistakes on sales orders. A proper inventory management system can reduce these problems with real-time sales and purchase records.  

3.Low Operational Costs 

When you have precise reports on stock levels, you know exactly which products you can ship out immediately. 

This ensures you pick-pack-ship more efficiently to customers. Your operations staff do not need to run from shelf to shelf to locate the items.  

For example, if you only have a few pieces left of a particular item, it can be difficult to manually search for it. With an accurate inventory management system, you will also know when you sold and shipped the last item.  

You can process more orders in less time with the same staff. It cuts your operational costs and helps balance your resources. 

4.Saves Time and Money 

When you keep track of items that are available and that have been ordered, you save time on recounts. Efficient inventory management solutions keep real-time records. It gives you details on what is available without checking each item physically. 

You will also be updated on what is selling and what is not. With this information, you can discontinue stocking unpopular items.  

Otherwise, you are paying rent and bearing expenses on these items in vain.  

5.Improved Customer Experience and Loyalty 

An accurate inventory management system will help your customers and keep them happy. You will better understand what is selling and have enough popular items. It will ensure that you deliver what customers need.  

Accurate details on the stock also smoothen out the shipping process. This means faster shipping for them and fewer returns for your company, helping avoid disappointments on the customer’s end.  

When customers get faster and better services, they show brand loyalty.  

Ending Thoughts   

Customers always look for efficient and simplified order experiences. For this, increased inventory accuracy can bring immense opportunities for your company. 

Achieving this goal is easy with Quinta’s latest tools and technologies, such as an inventory management system. Inventory accuracy can predict demand and prepare you to fulfill upcoming orders.