Inventory Accuracy

Low accuracy causes overselling, cancellations, and wasted safety stock.

Inventory accuracy = locations (or SKUs) with matching counts ÷ locations counted × 100

What inventory accuracy should I expect from a 3PL?

Many 3PL contracts commit to 99% or higher inventory accuracy, measured by cycle counts. Check how the contract defines accuracy, since unit-level and location-level measures give different results.

• Cycle CountCounting a small portion of inventory on a rotating schedule instead of shutting down for a full physical count.
• ShrinkageInventory lost to theft, damage, miscounts, or administrative errors, measured as the gap between recorded and actual stock.