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How Warehouse Accuracy Helps Improve Inventory Visibility and Profitability

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Warehouse inaccuracy is one of the main reasons for high overhead costs. It is important that you focus on improving its accuracy through proper warehouse inventory management, and boost business profitability!

accuracyCompanies rely on the information in the warehouse inventory system to make decisions regarding production schedules, restocking the inventory, and meeting other warehousing needs. Warehousing inaccuracy leads to costly mistakes that ultimately hurt bottom line of the business.

Without accurate warehousing information, businesses cannot make efficient inventory decisions. Inaccurate warehousing information leads to production delay, increased idle time, and failure to deliver products on time according customer’s specification.

That’s why it is essential that businesses focus on improving warehouse accuracy to avoid the negative cycle of declining productivity and inefficient warehouse inventory management.

Warehouse Accuracy: What Does it Mean

Warehouse accuracy means making the system of storing, receiving, and distributing inventory more efficient and accurate. Inventory inaccuracy is a headache in itself that erodes warehouse’s efficiency and business profitability. Some of the negative outcomes of inventory inaccuracy include increase in backorders, poor customer service, lost productivity, and high obsolescence costs. All of these directly hit profitability of the company with increased overhead costs.

Warehouse accuracy can be improved by implementing a solid warehouse inventory management system that results in improved inventory accuracy and visibility. The process of counting and monitoring inventory should be simple that allows frequent inventory count. Moreover, the inventory level should always reflect actual physical inventory stored in the warehouse at any particular time.

Tips and Advice to Improve Warehouse Accuracy

  • Implement Inventory Cycle counting – Taking partial physical count until you cycle through the entire inventory. The process continues forever and when one cycle ends, another one starts. Cycle counting helps improve warehouse accuracy. Moreover, it is much more efficient as compared to undertaking full physical count. You can figure out which inventory items are more in demand or costly so that you can count them more frequently.
  • Develop Automated Management Reporting – You can also improve warehouse accuracy by implementing an automated system that generates management reports informing about inaccuracies in the inventory system. The report could include information such as percentage of times items were not found in their expected places, mislabeled, damaged, and/or out of stock.
  • Make Use of Wireless RFID tags – RFID tags can greatly improve warehouse accuracy leading to efficient inventory management. They are embedded to each inventory item that warehouse personnel can read using a wireless receiver unit or sensor. The RFID device integrates with a warehouse management system to update inventory data in real time.
  • Other Methods – Apart from the above, there are other ways you can improve warehouse accuracy such as developing a ‘Storage Policy’ to ensure that items are stored at correct places, training warehouse employees to follow accurate inventory control procedures, identifying causes of inventory stock outs, and setting and monitoring inventory related key performance metrics for warehouse personnel.

What NOT to Do While Improving Warehouse Accuracy

  • Lazy housekeeping, Inventory items are not organized properly
  • No inventory audit and verification
  • Lack of personnel for handling bulk inventories
  • Inefficient inventory documentation process
  • Not taking immediate steps to resolve errors during periodic inventory counting
  • Not allocating enough resources (time and money) for implementing solid warehouse inventory system
  • Relying too much on outsourced services for inventory management
  • Ignoring staff development and training to improve warehouse accuracy

In summary, focusing on warehouse accuracy will lead to improved inventory management and reduced overhead costs. The resources spent on implementation of systems and methods to improve warehouse accuracy will be well worth it in the end.

An accurate warehouse inventory system will result in improved inventory visibility, reduced overhead costs, minimum idle time, and increased customer satisfaction. All of these factors in combination will greatly help in boosting business revenues, and profitability.

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"Over the past 12 years I have had the pleasure of working with Chris Summers and Mark Horwitz with Material Handling Exchange. Over this period of time I have had the pleasure of working with them on large and small projects whether I was selling (or) buying uprights, beams, wire decking, shelving, carts and pick-modules from Chris and Mark. They have always been helpful and friendly. They treat you more like a friend than just a customer and that goes for to entire staff at Material Handling Exchange. They will go out of their way to help you whether your needing racking, shelving or anything necessary to equip your facility. I can’t express just how much they have helped me over the years. Now that Material Handling Exchange has the capability of manufacturing racking they can beat anyone’s price and supply you with quality racking!!"


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Ashland Conveyor

"I have worked with MHE for a year or so. They have helped me with old racking repair parts as well as new racks for our shop floor and warehouse. There team has been very helpful."

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"Chris Summers is always very helpful and gets our quotes to us in a timely manner. If we have a question he’s quick to answer and goes out of his way to provide us excellent customer service."

Jennifer Liebert
Gotta Go Surplus

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Paul Doggett

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"Material Handling Exchange employees were knowledgeable, helpful, and involved throughout the design and installation. Very easy to work with. The installation crew were professional and easy to work with."


"We have been outfitting a new 14,000 sqft warehouse with new racking. We worked with MHE a couple years ago and had great experience with getting everything specced out and rated for our needs. We had to get racks custom made for the specific work we do. Their prices were very competitive. We went back and ordered another quantity from them last year. We will likely be ordering more from them in the future. The only issue we had was the delivery. The trucking company they used didn’t brace everything and some of the racking fell off the pallets in the truck. It took us several hours to partially hand-unload a full 53 foot trailer. That was the trucking company though. MHE was great."


"Working with Bradly Cross and Ms Herbert in shipping was great. I had some problems with my shipper and they were very responsive to my needs for photos to help find the mis-shipped material."

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Action Industrial Service

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"Gleaners Food Bank recently contracted with MHE to install racking in our cooler rooms and Material Handling Exchange was great to work with. They were very responsive to our needs and gave us very reasonable pricing. The install team that came to our facility was outstanding; they worked safely and cleaned the work areas meticulously once the work was completed.

We will absolutely use Material Handling Exchange for future projects in our DC."

Neil M. Underhill

"I had MHE design and build cantilever rack for our cabinet manufacturing company. the sales person I worked with was knowledgable of how our business works and knew exactly what we needed. This order was a custom build due to the limited ceiling height we have to work with in out plant. when we received our cantilever order we built and loaded it with lumber. everthing works great."


"Hands down the best company for racking I have worked with in my 15+ years. The racking is clean,safe,strong and easy to put up fast. I would also say that the sales team is right there if anything comes up with the job. All my questions where answered quick and they made sure to go over every detail to ensure I got the correct racking for my application. My company is located in North Carolina and there was no problems with shipping and was fast to get to us."

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"Starting at the beginning of this year I have been dealing with Mr. Horwitz. He has been very helpful and accomodating to our needs here at Newegg. He is very knowledgeable and prompt when offering quotations. Once orders are in the process the rest of his team communicates at a very professional level. We’ve ordered from them several times already this year and will continue to do so in the future."

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