poor inventory accuracy

The Risks of Poor Inventory Accuracy and Order Fulfillment

How often does your organization think about inventory accuracy and its impact on order fulfillment? The best-laid plans for an omnichannel supply chain will falter without accurate inventory. Meanwhile, your order fulfillment processes may be subpar, relying on outdated methods, numerous touchpoints, and more, says the Houston Chronicle. Supply chain leaders should consider how the risks of poor inventory accuracy in order fulfillment result in problems within the supply chain.

Diminished Ability of Forecast and Track Actual Trends

Inability to forecast and track actual trends is the biggest problem associated with poor inventory accuracy in order fulfillment. When a warehouse lacks efficiency in order fulfillment processes and relies on outdated inventory counts, it is also difficult to predict what will be necessary to succeed in the future. Customer behaviors change, and your reports from last quarter are outdated. Failure to have any degree of real-time visibility into inventory counts will add to your problem.

Failure to Maintain Competition With Big Box Retailers and Amazon

Poor inventory accuracy and order fulfillment will have a disastrous effect on customer service. Customers do not see all the background processes that go into ordering a product. They only know that they received an inaccurate order, paid too much, or could have purchased it from another retailer. That is the key. Failure to maintain accurate inventory will alienate customers. Such failure will drive them to other e-commerce retailers, including Amazon and big-box stores. These retailers will have the products at the prices the customer wants and can get the product to them immediately.

Increased Overstocking to Avoid Stockouts

Increased overstocking, also known as safety stock, also tends to occur when poor inventory accuracy and order fulfillment problems arise. Since the organization does not know when it will happen, the best-laid plan becomes a plan for the worst. In other words, carrying costs go up, and for perishable products, losses can be even higher.

Inability to Offer the Best Customer Experience

Any delay or problem in the supply chain will result in damage to customer experiences. Customers’ expectations reflect the capabilities of Amazon, and if your business cannot cut it, they will choose your competitor.

Loss of Cost-Effectiveness

Poor inventory planning in order fulfillment will also translate into negative atmospheres in the workplace. As a result, employee morale suffers, turnover rates increase, and the cost-effectiveness of your team and processes will decline, explains Bar Code Direct.

Put the Power of Newer, Advanced Systems to Work and Eliminate Poor Inventory Accuracy and
Order Fulfillment

Eliminate the costs and problems associated with poor inventory accuracy and order fulfillment with an adequate supply chain systems partnership. Unlock the secrets to success in your operation by contacting Veridian online.