Stock Accuracy
Thursday 24th May 2018
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Here's a Simple Test

What is your stock accuracy, and how do you measure it?

If you don't know, or give any of the following answers, then you're not at square one yet.

  1. Pretty Good
  2. We use the ABC method. (ABC stockchecks have no part in serving customers. ABC is only good for teaching children to spell.)
  3. We made a slight gain (or loss) at annual stockcheck.
  4. "We have an enquiry if the loss is greater than 10%" (A real answer from a public body. You, as a taxpayer, pay …)
  5. Dunno. (Well, it's honest and you're not carrying any preconceptions!)
  6. We're MRP class A certified. You could be OK, but class A 'only' requires 95% accuracy. With ever increasing range and more slow movers, 95% is no longer appropriate for fast response, high variety companies. The correct target is easy to calculate, and is partially dependent on batch size. Our issue with the glib 95% (or, 'we risk failure 5% of the time') is that it gives a false sense of security.
    I'd have been horrified to see my Finished Goods warehouse below 99%

Our Tools and training unpick the causes and help people switch first from effects to causes, then to successfully managing the critical causes.

It's pretty straightforward, but only if you set off on the right path.
Done right, one client reached stable control in 3 months.

As a general comment, if your processes are derelict then RFID, barcoding, 'system changes' or whatever won't save you. Don't automate a mess - all you'll achieve is an automated mess.

We might have a stock accuracy problem, please contact us

Imagination is more important than knowledge. Knowledge is limited. Imagination circles the world. Einstein
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