These discrepancies are clear indications of process failures. If every inward or outward movement of goods is mapped through Scanners / formats these discrepancies can be avoided. A suitable hardware deployment along with robust bandwidth of the internet will assure that no goods movement remains unrecorded, if due to any exegency goods have moved inward or outward or even BIN is changed that should be recorded in software or within couple of hours to keep the lag in mismatched quantities at lowest possible tenure. An integrated software and data management i.e. recording of entries and retrieval of reports should have complete integration with Purchase, logistics, accounting and financial team to ensure optimum stocking of goods.

To ensure accurate inventory management, it is essential to follow a structured process. This includes conducting regular audits to identify discrepancies, maintaining a database to verify inventory levels, and providing ongoing education and training to staff members

Having had the privilege to work with leading retail giants like Dubai Duty Free and Delhi Duty Free, I have observed that maintaining alignment between physical and digital inventory counts can be challenging. To address such discrepancies, here are some best practices: Cycle Counting: Regular audits for real-time accuracy. Breakage/Wastage Records: Documenting losses to minimize variances. Organized Spaces: Cleaning and arranging stockrooms/sales floors before counting. Integrated Systems: Syncing inventory management software with POS for seamless tracking.

The currently accepted suggestion is to eliminate the human factor and establish sustainable systems based on technology to perform stock movements in the shortest time and with the least errors; Such intensive use of technology will structure the entire process. However, until this point is reached, it is necessary to maintain 3 basic disciplines; 1) Compare your digital records with the physical inventory with the cycle counting system. 2) Regularly improve your technology. 3) Provide discipline for the team to enter correct data and manage the inventory properly.

Aligning physical and digital inventory records requires a systematic approach. Start with a thorough physical count and compare it with digital records to identify mismatches. Investigate the discrepancies to uncover causes like data entry errors, theft, or misplaced items, then update your digital system to reflect the accurate count. To prevent future issues, implement regular cycle counts, use barcode or RFID scanning for real-time tracking, and train staff on proper inventory handling. Adopting reliable inventory management software with robust auditing features ensures consistency and reduces the chances of discrepancies.

Answering from a retail background. 2 bits: 1) Keep it accurate, 2) deal with the sources of inaccuracies. On the first one Train staff to fill regularly. When the shelves are empty set the count to zero. Review difference to expected and correct if it's in the wrong location etc. systematically do a full count. On the second, is it theft via front doors theft via back door, process problems (e.g. wrong SKU entered at checkout, waste not written off before bin etc), short deliveries etc. Once source found, deal with that and attempt to make it self sustaining by regular checks. Also try not to security tag everything. You'll fix shrink, but by bit selling anything!

To align physical and digital inventory records, conduct regular cycle counts, investigate discrepancies promptly, update system records accurately, train staff on proper handling procedures, and implement automated tracking systems to minimize human errors.

From a process perspective , it is important to keep the count " Blind" " Focussed" and "Frequent " Ensure that the actual inventory ( what it should be) is kept hidden , ensure the stock counted is for a small set - large store /warehouse stock counts are time consuming , tiring and prone errors and make stock counts cyclical - more frequent the count lesser the discrepancies. From a technology discrepancies happen from siloed /disconnected system - An connected merchandise system which does not need batch/file updates will minimise stock discrepancies . Another area of discrepancy is not necessarily Lost stock but misplaced stock - another area where tech can help