Specifically, inventory record accuracy considers whether the physical quantity found of a sku matches exactly the quantity recorded on the system at any point in time. For example, if the system record suggests that there are twelve cases of a sku, for example Gillette MACH3 4 count, but the auditors only find five cases, or they find thirteen cases, in both examples, the record is deemed to be inaccurate.
Complexity is added when the measure is viewed through the lens of value Vs item integrity. Here, retailers can be more interested in the net negative value of the variance, often called out as unknown loss or shrink.
Further ambiguity is added when interpretations are made on how to measure the variance, with organisations adapting metrics that define accuracy as a percentage found within a zone of +/- 2 units, or a monetary value.
The ECR Retail Loss Group believes that inventory record integrity, either the system and the physical inventory match exactly or they don't.