Inventory accuracy is one of the most critical components of running a successful manufacturing operation. When your inventory data is precise, everything runs smoother: production schedules stay on track, costs are controlled, and customer orders are fulfilled on time. However, achieving accuracy—and maintaining it—can feel like an uphill battle.

Thankfully, with the right tools and processes, manufacturers can achieve 99% inventory accuracy consistently. This article outlines six proven steps that help you streamline inventory management, eliminate errors, and gain control over your operations.

Why Inventory Accuracy Matters for Manufacturers

Inaccurate inventory can cause a cascade of operational problems. For manufacturers, even small errors can disrupt production, delay shipments, and increase costs. When inventory counts are wrong, you might experience:

• Production slowdowns: Missing materials halt production lines, forcing costly delays.
• Overstocking or shortages: Misjudged inventory levels lead to excessive ordering, tying up money needlessly, or stockouts disappointing customers.
• Financial losses: Emergency purchases and unplanned downtime drive up expenses.
• Decreased customer satisfaction: Late or incomplete deliveries damage trust and brand reputation.

Accurate inventory data ensures manufacturers can make better decisions, reduce waste, and maintain production efficiency. With a clear view of material availability and usage, manufacturers can focus on meeting production targets and improving profitability. With that in mind, here are 6 steps to

1.    Implement License Plate Number (LPN) Tracking

License Plate Number (LPN) Tracking is the cornerstone of accurate inventory management. An LPN is a unique serial number assigned to each storage container—whether it’s a drum, pallet, or box. This system allows you to know, at any moment, exactly how much material is in a container and where it’s located.

Why LPNs Prevent Errors

When inventory is tracked at the container level, you can perform real-time reconciliations as materials are consumed. This prevents errors from accumulating over time.

For example:

• A drum starts with 250 kg of material.
• The system logs every usage, keeping a running total.
• If the operator finds the drum empty but the system shows 3 kg remaining, the system can reconcile the discrepancy immediately.

Without LPNs, inventory is often tracked as a total quantity by item, which makes it impossible to pinpoint where discrepancies occur. Errors accumulate until the next physical count, causing bigger problems.

How to Implement LPN Tracking

1. Assign a unique LPN to every container as it enters the facility.
2. Log quantities and locations under each LPN.
3. Use barcoding or RFID to quickly scan and update LPN data.

LPN tracking gives you the visibility and control needed to ensure inventory accuracy at all times.

2.    Prompt Operators for Inventory Reconciliation

Errors often arise when materials are consumed in ways that don’t match expectations. To prevent this, prompt operators to confirm inventory levels during key production moments.

Identify Opportunities for Reconciliation

Reconciliation points can be built into regular workflows. For example:

• When containers are emptied: If a production process calls for 5 kg of material, but the operator only weighs out 4 kg, the system should ask, “Is the container now empty?”
• When unexpected actions occur: If an operator switches to a new container mid-batch, the system can prompt a quick check to confirm the first container’s status.

By identifying and prompting at these critical checkpoints, you empower operators to report discrepancies in real time, ensuring small errors are caught before they grow.

Benefits of Operator Prompts

• Reduces cumulative errors.
• Encourages accountability and attention to detail.
• Supports real-time accuracy in fast-paced environments.

By making it easy for operators to reconcile inventory as they work you can eliminate compounding inventory discrepancies.

3.    Integrate Scales to Track Exact Weights

Manual data entry during production is one of the biggest culprits behind inventory inaccuracies. Operators may guess weights, round up numbers, or make transcription errors. Integrating scales directly with your inventory management system eliminates these risks.

Why Scale Integration Works

1. Tracks actual usage: Scales record the exact weight of materials as they’re used, ensuring precise inventory adjustments.
2. Prevents operator bias: Without automation, operators may report weights they think are “close enough” to expected values.
3. Reduces repetitive errors: Automated data collection eliminates manual entry mistakes.

For example, in a batch production process, an operator may be tasked with adding 5 kg of material. Without scale integration, they might round up or down. Over multiple batches, these tiny errors compound. With scale integration, the exact weight is automatically recorded every time.

How to Implement Scale Integration

• Use digital scales that connect to your inventory software.
• Automate data transfers to eliminate manual recording.
• Set tolerance thresholds to flag significant deviations.

Scale integration ensures accuracy while reducing operator workload, helping manufacturers achieve consistent results.

4.    Track Every Inventory Transaction

Every movement of materials—no matter how small—can impact inventory accuracy. Manufacturers must track all transactions that affect inventory, including less obvious ones like:

• Receiving: Recording incoming materials and verifying quantities.
• Dispensing: Moving materials into smaller containers for production.
• Pre-Weighing: Preparing materials in advance for production orders.
• Sampling: Drawing small amounts for quality testing.

Why Tracking Every Transaction Matters

Unrecorded movements create blind spots in your inventory system. For example, transferring material from a drum to a smaller container without logging the transaction can make inventory appear off balance.

Tips for Tracking Transactions

1. Use barcode or RFID scanners to log transactions quickly.
2. Implement clear workflows for every inventory action.
3. Train operators to record transactions as they occur.

By capturing every movement, manufacturers can eliminate gaps in their inventory data and ensure everything adds up.

5.    Record Inventory Changes Live

One of the most common inventory pitfalls is delayed data entry. When operators record changes hours or days later, transactions can be forgotten, miss-recorded, or entered out of sequence. To avoid this, record all inventory changes live as they happen.

Benefits of Live Recording

• Improved accuracy: Reduces the risk of missing or incorrect entries.
• Real-time visibility: Allows spot checks and quick decision-making.
• Fewer delays: Eliminates the need to reconcile manual notes or paperwork.

For example, when an operator dispenses 10 kg of material into production, logging it immediately ensures the system reflects real-time inventory levels. Delayed entry, on the other hand, can cause confusion and errors if other transactions occur in the meantime.

6.    Use an Inventory Adjustment Report for Root Cause Analysis

Even with the best systems in place, occasional discrepancies will still occur. An Inventory Adjustment Report helps manufacturers identify patterns, pinpoint root causes, and refine processes.

What Does an Adjustment Report Show?

• Reconciliation data: Instances where operators corrected discrepancies.
• Unexpected corrections: Variances discovered during inventory counts.
• Patterns of error: Recurring issues with specific items, processes, or vendors.

Example: Solving Vendor-Driven Discrepancies

If an adjustment report shows consistent discrepancies for a specific item from a particular vendor, you can start weighing those materials upon arrival to verify accuracy. This proactive approach prevents future errors. Not only that, checking the adjustment report supports continuous improvement.

Continuous Improvement

By analyzing adjustment reports regularly, manufacturers can:

• Refine workflows to prevent recurring issues.
• Address vendor or operator-related inaccuracies.
• Improve confidence in inventory accuracy over time.

Final Thoughts: Build Confidence in Your Inventory Accuracy

Achieving 99% inventory accuracy isn’t magic—it’s the result of proven processes, smart tools, and operator engagement. By implementing tactics like LPN tracking, scale integration, and live recording, manufacturers can eliminate errors, improve efficiency, and gain full control over their inventory. With these six strategies, manufacturers not only solve their inventory challenges but also build a foundation for long-term success. Want to learn more? Book a demo with us!