Stock accuracy measures how much book data of your stock are different from the physical values in terms of location and quantity.
Stock accuracy impacts on so many aspect of a successful manufacturing business. Typical consequences of inaccurate inventory are:
- Lost sales and lost customers
- Missed schedules
- Late deliveries
- High freight costs
On the SAPICS Conference 2001 speaker said, that more than 80% of these problems can be traced back to inaccurate stock records. As we know, it is not enough to fight the problem symptom as thereby we can’t solve the reinforcing problem. What needs to be done is to find and eliminate the root cause of inaccuracy (e.g.: lack of training, pilferage).