Find the source of the error before correcting the number Most inventory errors aren't counting problems. They're process problems that counting eventually exposes. Think about where discrepancies actually come from in a real operation. A pallet gets moved without a transfer being logged. A kit gets partially picked and the remainder gets shoved back on the shelf in the wrong slot. A barcode is damaged and the scanner misreads it, or the counter skips it entirely because they

Cycle counting means checking stock continuously—not once a year Most warehouses pick a counting method early on and never revisit it. The operation grows, SKU count doubles, and they're still running the same full physical they ran when they had a single dock door and twelve employees. That mismatch is where shrink hides. A full physical count stops the building. Everything freezes — receiving, shipping, picks — while your team walks every slot and reconciles every discrepan

Inventory shrink is the polite word for it. A pallet comes in short, a bin count doesn't reconcile, a high-velocity SKU keeps showing phantom demand. The instinct is to blame the count process — bad scan, wrong location, somebody keyed it wrong. Sometimes that's true. But when the same dock door, the same shift window, or the same product family keeps showing up in your variance report, you're probably not looking at a process problem. Warehouse fraud tends to cluster. That's