accuracy –
Without an
automated
system,
companies
often don’t know what they have in stock, causing inaccuracies. Inadequate visibility can lead to excess/obsolete inventory buildup or unexpected shortages. Excess inventory can decrease cash flow, create warehouse space issues, increase expenses to house extra materials and ultimately lead to deficient customer service. However, inventory shortage tends to be the greater problem as it can lead to unfulfilled orders and unhappy customers.