In retail and especially omnichannel retail, inventory is the heart of your business. Whether you’re operating a running specialty store, a big-box chain, or a neighborhood hardware shop, knowing exactly what you have in stock, what condition it is in, and where it is can make or break the customer experience and your bottom line.

Why Inventory Accuracy Matters

Inaccurate inventory can lead to unhappy customers, frustrated employees, shrinking margins, and lost sales. When an internal or external facing system says a product is on the shelf but it’s not, a customer walks away empty handed or your employees end up disappointing a customer. At the same time, if your shelves are filled with unsold items, that’s cash tied up in inventory that isn’t moving and eventually leads to markdowns.

Some of the biggest impacts of poor inventory management include:

• Customer Experience: Few things frustrate customers more than online availability that doesn’t match what’s in-store.
• Lost Sales: If products are missing or miscounted, customers can’t buy them—even if they’re supposed to be in stock.
• Inefficient Reordering: Bad data leads to poor forecasting, which means you may reorder the wrong items at the wrong times.
• Increased Costs: Carrying too much stock raises storage costs, while emergency reorders or expedited shipping eats into margins.
• Shrink and Asset Protection: Accurate inventory helps you spot theft, fraud, or operational errors quickly.
  

Five Ways To Improve Inventory Accuracy in Your Retail Store

These five proven ways will tighten your inventory processes and boost accuracy. These methods not only improve day-to-day operations but give you more flexibility when deciding on what your omnichannel inventory strategy will be. 

1. Conduct Regular Cycle Counts

Instead of waiting for an annual physical count, schedule smaller, more frequent cycle counts. This keeps discrepancies in check and makes the counting process more manageable. A key to improving store fulfillment is implementing a process to audit skus with multiple out of stocks and sharing that information with the broader support teams. Make sure your store teams are comfortable working with the support teams at HQ. 

I have seen significant improvements in accuracy by implementing cycle counts during my career in retail and distribution. Waiting for an annual physical inventory creates such a lag time in results and can lead to issues that take weeks instead of days to clean up. The Summit team has helped implement Manhattan Active WM(MAWM) and has seen firsthand the benefits of its built-in inventory management capabilities. 

2. Train Staff on Proper Inventory Handling

In omnichannel operations, the retail store associates of today have responsibilities that include a wide range of service and operational tasks. Errors often come from turnover, lack of knowledge, and inconsistent receiving, stocking, and selling practices. Train your staff on how to properly scan, tag, and shelve products, and reinforce the importance of accurate data.

Without a fully staffed learning and development team, updating and rolling out new training documentation can seem like an impossible task. The Summit Organizational Change Management practice has experience augmenting teams to provide this support when it is needed without staffing up a full L&D organization. 

3. Audit Incoming Shipments Carefully

Mistakes happen during shipping. Always verify that what you receive matches the order, and put a process in place to ensure accountability and correct any discrepancies before items hit the floor. Log any discrepancies immediately and clearly define who is responsible, whether it’s the store, distribution center, or vendor. Using the tools native to Manhattan Active WM(MAWM) can digitize receiving logs and allow the teams to spend less time on paperwork and more time taking action to resolve the issue. 

Mistakes happen during shipping. Always verify that what you receive matches the order, and establish a clear process to ensure accountability and correct discrepancies before items hit the floor: 

• Verify incoming shipments: Make sure the items received match the order before they’re stocked or distributed. 
• Log discrepancies immediately: Record any missing, damaged, or incorrect items as soon as they’re identified. 
• Define accountability: Clearly assign responsibility for resolving discrepancies, whether at the store, distribution center, or vendor level. 
• Digitize receiving logs: Use the tools built into Manhattan Active WM (MAWM) to capture data digitally, reduce paperwork, and give teams more time to take corrective action. 

4. Monitor KPIs and Use Analytics

Track key performance indicators like inventory turn rate, shrink and swell percentage, and out of stock frequency. Use those insights to adjust ordering strategies, conduct focused store training sessions, and optimize stock levels. 

The need to manage omnichannel inventory was part of the challenge that led to the creation of Easypost Analytics. The Omnichannel Analytics module can provide real-time visibility into inventory by item and location along with in-stock rates and inventory depth.

5. Use a Modern POS and Inventory Management System

A smart POS system that syncs with your inventory management software ensures real-time updates every time a sale is made. Choose a system that integrates across all channels—online and in-store—and make it mobile to meet the tech standards that customers and employees expect in their daily lives. 

Integrating a modern system like Manhattan Active Point of Sale can reduce POS training and throughput time, allowing store associates to spend more time with customers and focus on inventory management activities that can get delayed when prioritizing the store checkout experience. 

Inventory Accuracy Is Retail Power

Inventory accuracy is more than a back-office or asset protection team concern—it’s a frontline priority. Having accurate physical and systemic inventory supports great customer experiences, improves operational efficiency, reduces costs, and gives teams  the clarity to make smarter business decisions.

When your inventory is right, everything else works better. The store runs smoother, your team performs with confidence, and customers leave happy. Summit Advisory team has experience in the systems, training, and KPIs for Inventory accuracy and can help unleash inventory as a key differentiating factor for your business.