✔ Overstocks
When stock levels are inflated, procurement teams place unnecessary orders.
This locks up working capital and adds unwanted carrying costs like storage, insurance, and handling.
✔ Stockouts
On the other side, underestimated stock levels lead to:
- Lost sales
- Backorders
- Higher customer churn
The business ends up spending more to fix a problem that was preventable.
Poor visibility leads warehouse teams to:
- Search for misplaced items
- Rearrange stock repeatedly
- Re-check counts manually
This slows down fulfillment and increases labor costs.
When operations depend on speed and accuracy, even small errors create big delays.
For industries dealing with expiry dates, batch/lot tracking, and regulatory audits, inaccurate inventory can lead to:
- Failed inspections
- Recalls that take longer and cost more
- Safety risks
- Penalties for non-compliance
Accurate tracking isn’t optional — it’s essential.
When numbers don’t match reality, teams spend more time:
- Reconciling spreadsheets
- Doing repeated stock counts
- Correcting shipment errors
- Updating records manually
This reduces productivity across warehouse, procurement, finance, and sales.
