Why Stock Discrepancies Happen in Growing Businesses

 Stock discrepancies are usually the result of small, cumulative oversights across different stages of the supply chain. Staying informed about the common causes could be the difference between scaling your operations effectively and struggling to fulfil orders. 

Human error during receiving

When new stock arrives, mistakes often happen during the initial count or while entering data into the recorded inventory. If a staff member miscounts stock, the system will reflect a different figure to what is physically on the shelves. Discrepancies also occur if items are scanned under the wrong SKU or product category, leading to balanced totals but incorrect individual records.

Mismanaged returns

Customer returns are a frequent source of stock inaccuracies. If a returned item is placed back on a shelf but isn’t recorded in the inventory, the physical stock number will be inaccurate. Conversely, if an item is marked as returned and sellable but is actually damaged or disposed of, the system will report stock that does not exist. 

Picking and packing mistakes

During busy periods, items may be picked in the wrong quantities or from the wrong places, leaving a discrepancy in the inventory record that is often only discovered when an order cannot be fulfilled. 

Supplier shortfalls

Suppliers may occasionally ship fewer items than stated on the delivery note or include the wrong products in a consignment. If your team assumes the paperwork is correct and updates the inventory without verifying the contents of every box, your stock numbers will be incorrect. 

Unrecorded stock movements

If stock is moved between locations or departments within a business without this being recorded, staff will look for stock in the wrong places. While the total quantity across the business may be correct, the location discrepancy leads to confusion, delays and potentially missed orders.

 Why Stock Discrepancies Happen in Growing Businesses