Warehouse Execution System

What causes inventory discrepancies in the warehouse? 

And how do you stop them for good?

What are the most common causes of inventory discrepancies in the warehouse? 

Inventory discrepancies almost always stem from the same source: manual interventions between the movement of goods and the system posting. Every scan presents an opportunity for error: a wrong label, a missed posting, or a data entry error in the ERP system. As long as people are involved in the process between goods and data, the error rate remains structurally embedded in the system, no matter how well-trained the employees are.

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The most common causes are as below:


Missed or late bookings  

Forklift operators work under time pressure. When a pallet needs to be moved quickly, the transaction is often postponed until later and then forgotten. The system thinks the goods are still in their old location. The reality in the warehouse has long since changed.


Incorrectly scanned labels 

Damaged barcodes, poor lighting, and time pressure: all of these factors can lead to the wrong label being scanned. The merchandise is handled correctly, but in the system it ends up in the wrong location or under the wrong item number.


System discrepancies during data transmission

Transmission errors can occur between the moment the scan is taken and the actual booking in the ERP or WMS. This is a problem that is often underestimated, especially when dealing with outdated IT infrastructure or unstable Wi-Fi connections in the warehouse. 


Parallel processes
without synchronization 

In many warehouses, manual and digital processes run side by side. Paper notes, verbal agreements, and system entries coexist. What’s written on paper doesn’t always make it into the system, and what’s in the system doesn’t always reflect reality.  

Why don’t frequent inventory counts help prevent inventory discrepancies? 

Many companies respond to growing discrepancies by conducting more frequent inventory counts: weekly instead of monthly, or daily instead of weekly. This is understandable, but it addresses the wrong problem. 

  • Inventories measure the damage. They reveal the extent of the discrepancy between the system and reality, but they do not eliminate the cause of that discrepancy. The day after the inventory, the process starts all over again: entries are forgotten, scans fail, and data entry errors pile up.
  • The same applies to stricter scanning requirements and employee training. Both assume that human behavior can be error-free over the long term. In real-world warehouse operations—with shift work, time pressure, and rotating staff—this is not a sustainable basis for reliable inventory data.
  • If you want to permanently eliminate inventory discrepancies, you don’t need to tighten controls. You need to eliminate manual interaction between goods movements and system postings from the process.

At what point do inventory discrepancies become a real cost driver?

At first glance, inventory discrepancies may seem like a warehouse issue. However, the actual costs arise in entirely different areas of the company.


Search times and empty runs 

If a forklift operator is looking for a pallet that the system says is in row 7 but is actually in row 12, they waste time. When you multiply this time across all operators, all shifts, and all workdays, it quickly adds up to several hours of paid work time per day that does not generate any value. 


Production interruptions

An ERP system based on inaccurate inventory data will generate incorrect forecasts. Materials that the system shows as available will not be reordered. When they are actually needed and cannot be located, production may come to a standstill in the worst-case scenario. The costs associated with this typically far exceed the investment in a functional tracking system.


Delays in delivery and loss of customers     

Goods that are ready for shipment according to the system but cannot be located lead to delivery delays. Customers who regularly have to wait for their deliveries will eventually look for more reliable suppliers.


Time-consuming annual inventories  

The larger the accumulated inventory discrepancies, the more time-consuming and error-prone the annual inventory count becomes. Companies that struggle with discrepancies on a daily basis spend a disproportionate amount of time and manpower on their annual inventory count.

What is the only solution that truly eliminates inventory discrepancies?  

The answer is quite simple: No scan = no scan error.

  • Automatic real-time tracking: Goods movements must be tracked fully automatically, without manual scanning.
  • Seamless ERP/WMS integration: Data flows directly and automatically into the ERP or WMS system, without any manual intermediate steps, transmission errors, or delays.
  • No modifications or retrofits to existing vehicles: LiDAR sensors are retrofitted to existing forklifts. No structural modifications required. Operates via Wi-Fi or LTE—even in outdoor warehouses.
  • Real-time digital twin: The software creates a complete digital twin of the warehouse—with a comprehensive, tamper-proof movement history for every pallet.
  • The result is not a better scanning process. It is the complete end of the scanning process.

No scan = No scan error

The result is not an improved scanning process. It is the complete end of the scanning process.

How have other companies resolved inventory discrepancies using identpro?

Elmar Jung Product Solutions — B2B Trade

Elmar Jung Product Solutions, a wholesaler of gardening and outdoor products, operates three warehouses with over 5,000 items. Before implementing the identpro Warehouse Execution System, inventory discrepancies and posting errors were a recurring problem in day-to-day operations. Search processes consumed valuable time every day.

Since implementing the WES, Elmar Jung has achieved 100% real-time inventory transparency. Time-consuming search processes in the warehouse have been completely eliminated. The system was integrated into the existing warehouse management system without requiring a system change or interrupting ongoing operations.

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Hagemeister — Building materials industry 

Hagemeister GmbH & Co. KG, a leading manufacturer of clinker bricks with 190 employees, faced a common challenge in the manufacturing industry: pallet entries were delayed, inventory levels were unclear, and many processes were paper-based or on-demand.

With identpro’s Warehouse Execution System, all goods are tracked digitally in real time starting from the production stage. Today, it is possible to verify exactly which clinker is located where, down to the batch level, including color-matched deliveries to 12 European countries. Manual checks and paper-based record-keeping are a thing of the past.

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ELA Container — Mobile Space and Building Solutions

ELA Container manages a rental fleet of approximately 60,000 containers across 18 locations worldwide. Inventory and locations could not be verified in real time, and trucks regularly faced delays during loading. Processing a single truck took about 2 hours.

Since implementing identpro’s WES, ELA operates without the need for manual searches: orders can be initiated without follow-up questions, and detours are eliminated. Truck processing time has dropped from 2 hours to just a few minutes. Michael Gerdes, ELA Container: “Our staff can now focus on what matters most and no longer waste time searching.”

To the Case Study

Fragen zur Einführung und Integration

What decision-makers typically want to know before reaching out.

Yes. The identpro system is implemented on existing forklift trucks using IoT sensors and requires no structural modifications. There is no need to set reference points, lay tracks, or alter the warehouse structure. The system works in existing facilities, including outdoor storage areas, and under varying weather conditions.

Yes. identpro’s Warehouse Execution System integrates with existing ERP systems such as SAP EWM and SAP WM, as well as other warehouse management systems, via standard interfaces. It adds the real-time capabilities that were previously missing. It is also available as a SaaS solution in the cloud.

Data is captured fully automatically: more accurately and comprehensively than through manual scanning. Every movement of goods is logged in real time and transferred to the system. The result is a complete, tamper-proof history of every pallet’s movements, independent of human input.

You know the problem. We have the solution.

Inventory discrepancies aren’t just inevitable warehouse noise. They’re a solvable system issue. Talk to us about how this would work in your warehouse.

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Do you want to digitize your warehouse, gain more transparency and exploit the full potential of your resources?

We at IdentPro support you in this endeavor and would like to shape with you the future of intralogistics. Schedule a personal consultation now!

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Benedikt Heinen
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