A systematic process of comparing physical inventory counts with recorded inventory data in the warehouse management system to identify and resolve discrepancies. This process involves conducting regular cycle counts, full physical inventories, or spot checks to ensure that actual stock levels match what’s recorded in the WMS database.
Inventory reconciliation is critical for maintaining accurate stock records, preventing stockouts or overstocking, and ensuring reliable order fulfillment. Discrepancies can arise from picking errors, receiving mistakes, theft, damage, or system data entry errors. Regular reconciliation helps identify these issues early and maintains inventory accuracy above 95%, which is essential for efficient warehouse operations.
For example, if the WMS shows 100 units of a product but a physical count reveals only 85 units, the reconciliation process would investigate the 15-unit variance, determine the root cause, and update the system accordingly while implementing corrective measures.
