How is "inventory accuracy" defined in a WMS context?

In a Warehouse Management System (WMS) context, "inventory accuracy" is defined as the extent to which recorded levels match actual physical counts. This is a critical measure because it directly affects various processes, including order fulfillment, restocking, and overall inventory management.

When inventory accuracy is high, it means that the data entered into the system aligns with what is physically on the shelves. This alignment ensures that stock levels are correctly reported, which contributes to effective planning and decision-making. Discrepancies can lead to issues such as overstocking or stockouts, impacting customer satisfaction and operational efficiency. Accurate inventory records are essential for optimizing warehouse operations and maintaining service levels.

Understanding this definition helps organizations recognize the importance of regular stock audits and system reconciliations to maintain high levels of accuracy, which in turn supports effective supply chain management.