Root Causes of Inventory Errors: The Usual Suspects
- Roger Pujol, CPIM, CSCP
- 7 days ago
- 2 min read
Why Inventory Errors Persist—and How to Eliminate Them with ERP
Inventory errors aren’t just inconvenient—they’re costly. For manufacturers and distributors, even minor discrepancies can ripple through the supply chain, disrupting production schedules, inflating costs, and eroding customer trust. So why do these errors keep happening?
Let’s break down some root causes and explore how a well-configured ERP system can turn chaos into control.
Manual Data Entry Mistakes
Typos, miscounts, and skipped fields during receiving, picking, or counting.
Example: Logging 100 units instead of 1,000 due to a missed zero.
Poor Process Design and Discipline
Inconsistent receiving, labeling, or cycle counting procedures.
Lack of accountability or SOP enforcement.
Timing of shipping & invoicing processes.
System Disconnects
ERP is not syncing correctly with warehouse scanners or production modules.
Unit-of-measure mismatches between purchasing and inventory.
Untracked Scrap and Rework
Materials were pulled for rework or scrapped without proper documentation.
Leads to phantom inventory and inaccurate costing.
Production Variability
Yield fluctuations or BOM inaccuracies that skew the expected output.
WIP inventory is not updated in real time.
Shrinkage and Damage
Theft, spoilage, or mishandling that goes unreported.
Especially common in high-turnover or seasonal environments.
The ERP Advantage: Turning Insight into Accuracy
A modern ERP system like Acumatica can dramatically reduce inventory errors—if configured with precision. Here’s how:
Barcode and RFID Integration
Automate data capture to eliminate manual entry errors.
Real-Time Inventory Visibility
Track stock across multiple warehouses, bins, and production stages.
Cycle Count Automation
Schedule and reconcile counts without disrupting operations.
Audit Trails and Alerts
Flag anomalies instantly—before they become costly.
Landed Cost and BOM Accuracy
Ensure true cost visibility and production alignment.
Final Thought: Accuracy Isn’t a Luxury—It’s a Growth Lever
Inventory accuracy isn’t just about avoiding mistakes. It’s about enabling smarter purchasing, faster fulfillment, and better customer service. For manufacturers and distributors, it’s the foundation of scalable growth.
If your ERP system isn’t helping you get there, it’s time to rethink how it’s configured—or whether it’s the right fit at all.
If you would like to discuss your situation, please schedule a free, no-obligation consultation with us by using the link below. We can even visit your facility on-site and spend a day there.
Roger Pujol, CPIM, CSCP, the founder of Champion Business Solutions, LLC, is an ERP consultant & advisor specializing in ERP Business software for the manufacturing and distribution industries. He shares insights and experiences on assisting small and medium-sized businesses (SMBs) to enhance their operations.
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