Glossary
Stock accuracy
Stock accuracy is how often the number on screen matches the number on the shelf, counted line by line rather than in total.
Line by line is the important half. Totals hide everything.
Measuring it honestly
Count a sample of lines. Divide the number that matched exactly by the number you counted. That percentage is your accuracy.
A store with 200 units short on one line and 200 over on another is 100% accurate by value and 0% accurate on both lines. The second number is the one your customers experience.
What good looks like
- Above 95% on your fast sellers is a healthy small store
- Below 90% and you are refunding orders you thought you could fill
- 100% is not a target, it is a sign somebody is rounding
Measure it as a by-product of cycle counting rather than as its own exercise.
Where it goes wrong
Accuracy is measured once, after a stocktake, when it is at its best by definition. The figure is true for a morning and quoted for a year.
The other fault is treating every gap as shrinkage. Most drift starts at the receiving door, which is why counting a delivery into the order beats counting it onto paper. That is the job our receiving app does.
Related terms
Cycle counting
Cycle counting is counting a few products often, on a rota, instead of counting everything once a year.
Shrinkage
Also called: Shrink
Shrinkage is stock you paid for that is gone without being sold, through theft, damage or errors nobody recorded.
Stockout
Also called: Out of stock
A stockout is running out of something a customer wanted to buy. The lost sale is usually the smallest part of the cost.