Inventory Accuracy and Its Impact on Warehouse Performance. The case of Procter & Gamble.

Inventory Accuracy and Its Impact on Warehouse Performance: The Case of Procter & Gamble This thesis examines the significance of inventory accuracy in warehouse operations, focusing on its impact on efficiency, cost reduction, and customer satisfaction. Conducted as a case study at Procter & Gamble (P&G), the research explores common sources of inventory discrepancies, technological advancements, and process optimizations to improve accuracy. Importance of Inventory Accuracy Inventory accuracy is essential for maintaining efficient logistics operations and minimizing losses due to stockouts, overstocking, and misplacements. The study highlights how inaccuracies can disrupt supply chains, increase operational costs, and impact production planning. It also explores technological solutions like RFID, barcode scanning, and Warehouse Management Systems (WMS) to enhance data precision. Case Study at P&G: Challenges and Findings The research at P&G’s warehouse identified several key issues affecting Inventory Record Accuracy (IRA): Human errors, such as incorrect data entry and failure to report stock levels. Misplaced pallets, leading to increased search time and delayed order fulfillment. Barcode and scanning inconsistencies, affecting stock traceability. At the beginning of the study, the IRA rate was 97.5%, exceeding the industry standard (95%) but below P&G's target (98%). Process Improvements & PDCA Methodology To address these issues, a structured Plan-Do-Check-Act (PDCA) approach was implemented: Inventory audits and error tracking KPIs were introduced to monitor discrepancies. Warehouse zoning and mapping updates improved product organization. Employee training programs enhanced process understanding and reduced mistakes. Technological upgrades, including improved barcode scanning and Automated Guided Vehicles (AGVs), streamlined stock movement. By refining processes and engaging employees in accountability, IRA improved to 99.2% within four months, surpassing the initial goal. Future Considerations & Warehouse Automation The study explores further enhancements, such as: Fully integrated RFID systems to replace barcode scanning. Real-time monitoring for proactive error detection. Warehouse expansion to accommodate peak inventory levels. Conclusion The research demonstrates that inventory accuracy is a key driver of warehouse efficiency. By integrating technological solutions, employee engagement, and structured process improvements, businesses can reduce operational risks, optimize resource allocation, and enhance customer satisfaction. The findings serve as a roadmap for companies seeking to achieve higher IRA and long-term supply chain stability