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Inventory Accuracy: What 95% Really Means (and Why You Need 99%)

Most warehouses claim 95% inventory accuracy. That sounds fine � until you do the maths on what 5% inaccuracy actually costs you every month.

If somebody asked you right now � how accurate is your inventory? � would you have a number? Most warehouse managers will say "pretty good", or "around 95%". Both answers are warning signs.

How accuracy is actually measured

Inventory accuracy is the percentage of SKUs whose physical count matches the system count exactly. If you have 4,000 SKUs and 200 of them are off by even one unit, you're at 95%.

What 95% costs you

A 5% inaccuracy rate means 1 in every 20 customer orders will involve a wrong count somewhere in the pick path. Multiply that by your monthly order volume and the real cost shows up: failed dispatches, emergency re-picks, customer credits, and stockouts your reorder system never saw coming.

Why 99% is the new standard

Modern cloud WMS platforms with cycle counting, barcode scanning and bin-level tracking routinely hit 99%+. There's no excuse to be operating below that benchmark in 2026.

How to get there

  1. Replace annual stock takes with rolling cycle counts.
  2. Force every movement (receive, transfer, pick) through a scan.
  3. Investigate every variance � no matter how small.
  4. Use ABC analysis to count fast-movers more often.

VasKem ships cycle counting and bin-level tracking out of the box.

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