Inventory accuracy in retail stores has been traditionally low for reasons such as:
Manual data entry where many retailers still rely on human data entry to track inventory levels, which can lead to errors.
Lack of standardization when different stores or departments within the same store use different methods to track inventory, it is difficult to get a clear picture of overall inventory levels.
Poor data quality means retailers may not have a clear understanding of their inventory levels, due to data being entered inaccurately, missing data or not updating in a timely manner.
Complex supply chains where retailers often have multiple suppliers and distribution centers, can make it difficult to accurately track inventory levels across different locations. High product turnover affects retailers that carry a large number of products that have a short life span, making it challenging to accurately track inventory levels.
Theft and shrinkage cause retailers to lose inventory to factors such as employee theft, shoplifting, or administrative errors.
Lack of technology affects retailers that don't use inventory management software or other technology to track inventory. As a result, retailers may find it difficult to accurately track inventory levels.