Inventory control is a strategic pillar for any logistics or e-commerce company. Inventory errors can quickly impact your finances, disrupt your operations and undermine customer satisfaction.
Fortunately, there are proven methods for preventing these errors, correcting anomalies quickly and building reliable inventory management. In this guide, you’ll find all the keys to securing your inventory, optimizing your flows and boosting the performance of your logistics.
Why is inventory control crucial?
Inventory errors are costly:
- Financial loss: out-of-stocks, overstocks, lost sales or duplicate orders.
- Reduced efficiency: slower operations, logistical disorganization.
- Compromised customer satisfaction: delays, delivery errors, tarnished brand image.
“An undetected inventory error can quickly turn a competitive advantage into a source of customer frustration and financial loss.” The Iziship team
The main causes of inventory errors
1. Human error
- Incorrect data entry for incoming and outgoing shipments
- Counting errors during physical inventories
2. Unsuitable procedures
- No cross-checking process
- Poor tracking of stock movements
3. Obsolete technologies
- Non-connected, non-automated systems
- No real-time monitoring
Preventing inventory errors: best practices
1. Implement a reliable inventory management system
- Modern, automated, centralized inventory management software
- Real-time data updates
- Automatic alerts on critical thresholds or inconsistencies
2. Carry out regular audits and controls
- Physical audits: monthly or quarterly
- Rotating inventories (by zone, by product) to avoid saturation
- Cross-checking computer and physical inventories
3. Train staff
- Initial and ongoing training on processes and management tools
- Raising awareness of the importance of inventory control and best practices
4. Standardize and document procedures
- Set up checklists for each stage: reception, storage, picking, dispatch
- Clear documentation of processes to avoid improvisation
Quickly correct inventory errors
1. Identify the source of the error
- Analysis of the processing chain to locate the point of failure (reception, storage, picking, dispatch, etc.).
- Analysis of movement logs (computerized traceability)
2. Readjust inventory
- Immediate correction of discrepancies in management software
- Physical counting if necessary to validate adjustments
3. Implement corrective actions
- Updating processes, tightening controls or retraining teams
- Root cause analysis to prevent recidivism
“To correct an error without correcting the cause is to expose yourself to reproducing it.” The Iziship team
The key role of technology in inventory control
Automation and connectivity
- Use of integrated WMS (Warehouse Management System) or ERP systems
- Real-time synchronization with e-commerce tools (Shopify, Prestashop…)
- Installation of RFID scanners, bar codes, digital traceability
Benefits of automation
- Reduce human error
- Process acceleration
- Improved visibility of stock flows
Advanced technologies to be integrated
- RFID for automatic and precise tracking
- IoT and sensors for environmental monitoring (temperature, humidity, etc.)
- Analytical dashboards for performance management
Iziship, your inventory control partner
Thanks to an integrated logistics solution, Iziship can help you with :
- Initial audit and compliance of your inventory
- Real-time inventory management with our connected WMS
- Team training and process documentation
- Anomaly management and rapid corrections
- Analytical reporting to improve the reliability of your inventories
Practical checklist for optimal inventory control
- Do you have modern inventory management software?
- Do you carry out regular audits?
- Are your teams trained in procedures?
- Are your processes documented and monitored?
- Do you use automation technologies (scanners, RFID, etc.)?
- Do you analyze errors and take corrective action?
In a nutshell
Rigorous inventory control is the key to efficient, reliable and profitable logistics. By combining best practices, regular audits, ongoing training and technological tools, you can secure your inventory management and boost customer satisfaction.
