The bulk of all inventory record keeping systems still require manual data entry of inventory transactions into a computer system, rather than the use of bar code scanners or RFID to automatically track quantity and location changes. Unfortunately, it is impossible to flawlessly enter data manually, so most companies must deal with a certain amount of error investigation and correction. These errors can be traced to either data entry, initial quantity miscounts, incorrect picks, or incorrect identification or recording of inventory items.
One way to reduce these errors is self-auditing within the warehouse department. The basic concept is for employees to audit each other’s work, which can range from a small sample size to a 100% test. Obviously, this approach is only possible if there is a sufficient amount of staff time available. During peak work periods, it is probably impossible, but there may be slack time when audits can be squeezed in.
Examples of inventory self-auditing include:
- Inventory pickers can compare each other’s picked orders to the authorizing pick ticket.
- Data entry clerks can compare input sheets to computer transaction logs.
- Cycle counters can recount any exception conditions found by another cycle counter.
- Cycle counters can review each others’ correcting entries in the inventory database.
There are two problems with self-auditing. First, it difficult to ensure that employees are actually conducting audits. Second, there may be peer pressure to cover up mistakes. However, if the warehouse staff is partially compensated based on inventory record accuracy, there should be enough pressure amongst the group to overcome both of these problems.