Why Inventory Accuracy Can Help Skyrocket Your Retail Business

Brown-haired warehouse female worker smiles while overseeing inventory accuracy.

In retail, inventory accuracy is the name of the game. It's not just about knowing what's on your shelves; it's about ensuring what's in your system matches what's in your storeroom.

Why does it matter? Well, consider this scenario:

You're looking at your shelves filled with products that don’t find a buyer, tying up your cash flow and eating into your profits. Alternatively, if you run out of a popular product, customers get disappointed and go to your competitors.

These are the harsh realities of inventory inaccuracies, directly impacting your bottom line.

In this blog, we will explore how to keep your inventory in check, leverage technology, and turn your stockroom into a well-oiled machine.

Why is inventory accuracy so important?

Inventory inaccuracies can slowly drain profits and erode competitiveness.

According to industry research, supply chain disruptions, which include inventory inaccuracies, can cause a massive 62% loss in finances (1). These costs arise from various sources, including mis-shipments, picking errors, and the subsequent logistical challenges.

Moreover, frequent shipping errors can diminish customer satisfaction and loyalty, driving away valuable clientele and tarnishing brand's reputation.

Look at the stats.

34% of businesses have shipped an order late because they were out of stock. (2)
1 in 3 buyers abandon a brand after a single bad experience. (3)

Accurate inventory management does a lot for operational efficiency. But it also influences the financial health and long-term viability of retail businesses like yours.

Leveraging Technology for Inventory Accuracy

In the retail world, technology is a game-changer for keeping inventory in check and running things smoothly. At the heart of inventory management strategy lies the Order Management System (OMS). This platform is designed to streamline and centralize inventory data from all sales channels and fulfillment channels. It serves as the nerve center of operations, providing real-time visibility into stock levels, locations, and movements across the entire supply chain.

The OMS helps brands improve their sales through inventory precision and guides the way on how to maintain inventory accuracy.

A robust OMS can also help optimize order routing based on inventory availability and proximity to the customer. This minimizes shipping times, reduces fulfillment costs, and enhances overall operational efficiency.

Moreover, the OMS facilitates seamless integration with other critical systems. This includes Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Warehouse Management Systems (WMS).

Thanks to the OMS, brands aren’t just keeping better tabs on their inventory—they’re also making the whole operation run smoother.

Despite all these benefits, only 26% of companies have automated inventory processing. (4) This means investing in inventory accuracy automation is still a great opportunity to win a competitive advantage.

How to Improve Inventory Accuracy through an OMS

Accurate inventory management is crucial for smooth retail operations. That’s why adopting effective strategies is key to avoiding errors and maximizing profits. In this section, we'll dive into how to achieve inventory accuracy with an OMS.

Real-Time Visibility Across All Channels: An advanced OMS provides real-time visibility into inventory across all sales channels, including multiple storefronts, marketplaces, retail stores, and warehouses. This centralized view serves as a single source of truth, allowing businesses to make informed decisions based on accurate inventory data.
Centralized Source of Truth: With an OMS, brands can allocate inventory efficiently, ensuring products are available where and when needed. This centralization helps prevent stockouts and overstock situations, optimizing inventory levels across the board.
Exposing Available to Sell (ATS) Inventory: An OMS ensures that all available inventory is exposed to customers while maintaining safety stock levels to prevent overselling. This transparency helps manage customer expectations and enhances their shopping experience.
Accurate Storefront Inventory Display: By showcasing accurate inventory levels on online storefronts, an OMS prevents discrepancies where products appear out of stock online despite availability in other locations. This accuracy helps avoid lost sales and improves customer satisfaction.
Leveraging Inventory to Drive Sales: An OMS can showcase local store inventory on the storefront and provide estimated delivery dates, allowing shoppers to choose their preferred delivery method. This flexibility can boost sales by catering to customer preferences.
Enabling Preorders and Backorders: Offering preorders and backorders through an OMS can drive additional revenue. Customers can be informed about upcoming product launches or restocks of their favorite items, creating excitement and ensuring they don't miss out.

A huge benefit of inventory accuracy is that it empowers brands to sell more products. If a company doesn’t know where its stock is, it loses sales. If they can't offer preorders or backorders, they miss out on potential revenue. Implementing inventory accuracy metrics, such as cycle counting and stock discrepancy rates, helps brands excel in this critical practice, driving overall success.

Key Takeaways

Prioritize Inventory Accuracy: Accurate inventory management is essential for avoiding stockouts, reducing excess inventory, and ensuring customer satisfaction.
Use Technology: Use an Order Management System (OMS) to enable real-time inventory tracking, maintain accurate stock levels, and optimize operational efficiency.

Inventory management directly impacts your bottom line and customer satisfaction. It's not just a backend issue; it's a strategic advantage that can set you apart from competitors.

Deck Commerce Order Management

Deck Commerce seamlessly integrates online and offline shopping experiences, setting the stage for unparalleled customer satisfaction. We streamline the entire order process, from order placement to delivery, whether it's shipping from a warehouse, a store, or directly from a supplier.

But don't just take our word for it – hear from the businesses who've experienced the Deck Commerce advantage firsthand.