Stock accuracy

How often does the number in your system match the number on the shelf? If you check 100 locations and 96 are exactly right, your records are 96% accurate. When the figure is high you can trust the system to promise stock to customers and to tell you when to reorder; when it is low, every decision rests on a guess. That measure is called stock accuracy.

Count by location, not just in total. A shelf with two too many and another with two too few can add up to a perfect total while both locations are wrong, and the next picker still finds an empty space. Measure the percentage of locations (or items) that match exactly, within a tolerance you choose, such as exact for expensive items and a few units for cheap ones.

The figure improves with the habits that create the records: scanning at receipt, putaway, picking and returns, and regular cycle counts that find each difference and its cause. Track it each month; the trend tells you more than a single reading.