Accuracy and Audits
WMS functionality requires verification of inventory accuracy to maintain operational effectiveness. Inventory accuracy is typically maintained by annual physical inventory counts or by counting specific portions of the inventory on a planned basis. Cycle counting is the audit of selected inventory on a cyclic schedule. Selection of individual items to be counted and verified can be based on the dollar value of the items, storage location, frequency of movement, or turnover. Once counted, discrepancies between physical and WMS inventories are reconciled to assure continued system validity.
Audits related to inventory accuracy are only one type of audit that is typically used to maintain and improve warehouse operating efficiency. Audits are also common to maintain safety, assure compliance to security regulations, drive procedural improvement, and facilitate work changes.
Security
In a broad sense, security in a warehouse involves protection against merchandise pilferage, deterioration, and any form of operational disruption. Each form of security requires management attention.