Background: A regional online retailer experienced frequent disruptions due to incorrect stock records. Products listed as available would turn out to be out of stock when pickers arrived at the shelves, leading to delayed shipments, cancelled orders, and dissatisfied customers. The issue worsened during promotional periods and seasonal peaks.
Workaround
To prevent order errors, warehouse supervisors instituted daily manual counts for top-selling items. Staff used spreadsheets to log counts and reconcile discrepancies each morning before operations began. This temporary fix created new problems: increased workload, delays in order processing, and stress among floor staff.
- Symptom: Frequent fulfilment errors and a spike in customer service complaints.
- Workaround applied: Manual daily recounting of popular SKUs.
Deeper Analysis
The root of the issue wasn’t human error, but system design. The inventory management software updated stock levels in batches overnight, and it wasn’t connected to the ecommerce platform in real time. As a result, stock shown online didn’t match physical inventory. Discrepancies compounded daily.
- Cause: A disconnect between sales and inventory systems, with no live syncing.
Root Cause
Technology and process had not kept pace with changing workplace behaviours. The company had no visibility over how spaces were actually used, nor any consequences for hoarding or misusing shared resources.
- Root Cause: The company had grown quickly and patched its operations with separate tools. Integration and automation were sacrificed for speed. Inventory logic had not been reviewed since the company was much smaller.
Solution
They adopted a cloud-based ERP solution that integrated sales, inventory, and warehouse management. The system updated stock levels in real time and included handheld scanner integration for immediate adjustments during picking. Inventory accuracy was audited weekly to improve discipline.
- Solution: the organisation adopted a cloud-based ERP solution that updated stock levels in real-time.
Outcome
Order accuracy improved dramatically. Customer complaints reduced by over 60%, and warehouse efficiency improved as manual tasks were phased out. Seasonal peaks were handled without overtime or errors.