In warehouse and distribution, there’s often an overlooked issue silently eating into profits: poor stock accuracy. While it may not be seen by some as a macro factor wreaking financial havoc, it can have a serious impact on net profit.
From missed shipments and costly returns to frustrated customers and operational delays, inaccurate inventory data is a hidden saboteur in the supply chain. Fortunately, companies that identify and address this problem stand to make major gains in efficiency, customer satisfaction and revenue – while protecting their bottom line.
In this article, Kiron Soni, Managing Director – UK & Ireland at RGIS, explores how poor stock accuracy quietly drains profits from warehouse operations and how smart technology is helping businesses reclaim control and drive measurable results.
Efficiency is key
In a warehouse, efficiency is key. Businesses can spend millions fine-tuning processes to speed up logistics, increase storage capacity and reduce waste – all to meet the ever-growing demands of their customers. However, when it comes to stock accuracy, many businesses still fall short in adopting the necessary tools to improve efficiency. This often stems from reliance on outdated systems and manual processes, where even small human errors in data entry can snowball into larger issues.
A single missed barcode scan or a miskeyed count can trigger a chain reaction that distorts the entire inventory picture. In large warehouses dealing with thousands of SKUs, small mistakes quickly compound into operational chaos.
The hidden cost of inaccuracy
The financial impact of poor stock accuracy is often underestimated. Inaccurate inventory can lead to overstocking, which ties up capital and increases storage costs, or understocking, which results in missed sales opportunities and customer dissatisfaction. It also slows down order fulfilment and increases labour costs, as staff spend more time locating items, recounting stock or resolving discrepancies. Industry research suggests that stock inaccuracies can erode up to 10% of a company’s annual revenue. That’s not just a matter of misplaced products or wasted time – it represents a costly and avoidable drain on overall profitability.
Worse still, when errors become routine, trust in the system erodes, and productivity takes a hit.
A smarter solution
So, how can businesses overcome this silent profit killer? Technology, particularly in the form of vision-based inventory systems, offers a promising solution.
One such system, RGIS Vision, combines advanced scanning capabilities with AI-powered analytics, and when leveraged by RGIS’s expert staff, can transform how organisations manage their stock. These solutions enable businesses to verify inventory levels quickly and accurately, reducing human error and improving real-time visibility across the supply chain.
Unlike standard stocktaking scanners, RGIS Vision can read alphanumeric codes, removing the need for every item to be barcoded. This delivers a faster, more accurate stocktaking process compared to the traditional paper-and-pen method often used for product-coded stock. Thanks to its advanced technology, the scanner can even capture codes that are smudged or partially obscured.
The benefits
The correcting of errors is a clear benefit of advanced inventory systems, but its impact reaches much further into business-wide efficiency. Reliable stock data allows businesses to optimise order picking, automate replenishment, and improve demand forecasting. This results in smoother operations, higher customer satisfaction and better decision-making from leadership.
In today’s logistics environment, speed and accuracy are non-negotiable. Technologies such as RGIS Vision offer businesses a higher level of control and precision than traditional processes can provide.
Many warehouse and logistics businesses using such systems have seen measurable improvements in fulfilment accuracy, stock visibility and operational efficiency – critical factors in meeting the demands of a fast-paced supply chain.
Solving the silent profit killer
In the race to increase warehouse efficiency, neglecting stock accuracy can be compared to running a manufacturing line with faulty sensors – the system might keep moving, but errors will accumulate, slowing down production and leading to costly disruptions.
By leveraging technologies such as RGIS Vision, businesses can prioritise stock accuracy, safeguard profits and lay the foundation for scalable, resilient growth.
To find out more about how RGIS can help your business, visit www.rgis.co.uk.
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