Having accurate inventory is VERY important for the success of any ERP system. An accurate inventory will improve the efficiency of Customer Service, Purchasing, Manufacturing, and Shipping. Improving efficiency means reducing cost and waste in almost all of your processes.
We suggest that you measure inventory accuracy as part of your monthly “Dashboard”. This can be done by setting “accuracy standards” for your items. Not every item needs to be exactly correct in order to be “accurate”. For low cost, easily obtained items +/- 10% might be OK. For high cost, long lead time items, +/- 0% might be appropriate. They typical process for obtaining these numbers is through cycle count records, so if you are not already doing that, we highly recommend that you start.
First of all, there are two levels of inventory “accuracy” . . .