{"id":14399,"date":"2024-08-12T10:00:00","date_gmt":"2024-08-12T10:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/inventory-adjustments\/"},"modified":"2025-07-28T19:15:54","modified_gmt":"2025-07-28T19:15:54","slug":"inventory-adjustments","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/inventory-adjustments\/","title":{"rendered":"Inventory Adjustment Guide: Strategies for Accurate Management\u00a0"},"content":{"rendered":"\n<p>When it comes to your ecommerce brand\u2019s inventory, meticulous record-keeping is very important. But no matter how diligently you <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\">track inventory<\/a>, sometimes things don\u2019t turn out the way you expected. \u00a0<\/p>\n\n\n\n<p>Maybe you discover some of your inventory has gone missing, or a sudden flood damages stock beyond repair. Suddenly, the inventory amounts and levels you have recorded don\u2019t match the inventory amounts and levels you actually have. &nbsp;<\/p>\n\n\n\n<p>In this scenario, you\u2019ll need to perform an inventory adjustment. Regularly adjusting your inventory helps ensure that your inventory data is accurate and representative of your actual, physical <a href=\"http:\/\/https\/\/www.shipbob.com\/blog\/inventory-days-hand\/%20%E2%80%8B\" target=\"_blank\" rel=\"noreferrer noopener\">inventory on hand<\/a>. &nbsp;<\/p>\n\n\n\n<p>Let\u2019s walk through what an inventory adjustment is, when you need one, how your business can benefit from it, and how to adjust inventory correctly and efficiently. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-inventory-adjustment-nbsp\">What is an inventory adjustment?&nbsp;<\/h2>\n\n\n\n<p>Inventory adjustment is the process of adjusting inventory levels in your <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-records\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory records<\/a> to match the actual amount of stock you have on hand. These adjustments may involve decreasing or increasing the quantities to match the physical inventory count, or adjusting the value of inventory in your system to reflect your actual inventory value. &nbsp;<\/p>\n\n\n\n<p>If you identify any <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-discrepancy\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory discrepancy,<\/a> performing an inventory adjustment allows you to resolve it and ensure that your records are accurate and updated. Having accurate, up-to-date inventory counts is crucial, as it enables your brand to:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Make more informed, data-driven decisions&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Correctly identify when you\u2019re\u00a0running low on stock and make timely replenishments to minimise <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\">stockouts<\/a>\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Avoid ordering excess inventory and prevent dead stock, <a href=\"https:\/\/www.shipbob.com\/blog\/surplus-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">surplus inventory<\/a>, and unnecessarily high <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/holding-costs\/\">holding costs<\/a>\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-do-you-need-to-adjust-inventory-nbsp\">When do you need to adjust inventory?&nbsp;<\/h3>\n\n\n\n<p>You\u2019ll need to adjust inventory whenever the actual number of items you have on hand does not match the amount of inventory you recorded. Typically, the mismatch is because instead of being used to fulfil orders, something else has happened to inventory.&nbsp;&nbsp;<\/p>\n\n\n\n<p>This is called <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-shrinkage\/\">inventory shrinkage<\/a>, and there are many potential causes. \u00a0<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-theft-nbsp\">Theft&nbsp;<\/h4>\n\n\n\n<p>One of the most common reasons to adjust inventory is shrinkage due to theft. Your physical inventory count may be lower than the levels in your inventory system if unscrupulous employees or third parties are stealing stock.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-loss-misplacement-nbsp\">Loss\/misplacement&nbsp;<\/h4>\n\n\n\n<p>Misplacing inventory is a common occurrence, especially if your warehouse layout is disorganized. Whether this is temporary or permanent, it still decreases your <a href=\"https:\/\/www.shipbob.com\/blog\/physical-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">physical inventory<\/a> count, resulting in discrepancies. Similarly, if those misplaced items turn up after you\u2019ve already made adjustments, you\u2019ll need to account for them again and make additional adjustments.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-damage-breakage-nbsp\">Damage\/breakage&nbsp;<\/h4>\n\n\n\n<p>Accidents can happen in the warehouse, and these sometimes result in inventory damage. Since this damaged inventory can no longer be sold, it needs to be <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-write-off\/\" target=\"_blank\" rel=\"noreferrer noopener\">written off<\/a> and excluded from your inventory counts. &nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-waste-nbsp\">Waste&nbsp;<\/h4>\n\n\n\n<p>Similarly, when your inventory expires or becomes <a href=\"https:\/\/www.shipbob.com\/blog\/obsolete-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">obsolete<\/a>, it counts as waste and needs to be removed from your viable stock. Waste is common when selling food and consumer goods and perishable items.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-internal-use-nbsp\">Internal use&nbsp;<\/h4>\n\n\n\n<p>Sometimes, inventory items may also be used internally by the company. In this case, you should update your inventory records to ensure that the usage of that stock is accounted for.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-returns-nbsp\">Returns&nbsp;<\/h4>\n\n\n\n<p>If you don\u2019t have a proper system in place to account for <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\" target=\"_blank\" rel=\"noreferrer noopener\">returns<\/a>, then you\u2019re likely to face discrepancies in your physical stock levels. You may end up having more physical stock than what\u2019s recorded in your system.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-counting-errors-nbsp\">Counting errors&nbsp;<\/h4>\n\n\n\n<p>Human errors in the physical <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-counting\/\">inventory counting<\/a> process can also lead to inaccuracies. This can either decrease or increase your inventory quantity in your records or in actuality.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-clerical-errors-nbsp\">Clerical errors&nbsp;<\/h4>\n\n\n\n<p>There can also be clerical errors resulting in discrepancies in your inventory value. For example, some items may be accidentally recorded with a higher <a href=\"https:\/\/www.shipbob.com\/blog\/cost-of-goods-sold\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost of goods sold<\/a> (COGS), leading to an overestimation of your inventory value.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-inventory-adjustments-nbsp\">Types of inventory adjustments&nbsp;<\/h2>\n\n\n\n<p>There are three kinds of inventory adjustments brands can make: decreasing inventory quantity recorded, increasing inventory quantity recorded, and <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-valuation-methods\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory revaluation<\/a>. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-decreasing-quantity-nbsp\">Decreasing quantity&nbsp;<\/h3>\n\n\n\n<p>This is a type of quantity adjustment that helps you account for inventory shrinkage and loss as well as waste, damage, and internal use. It involves <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-reduction\/\" target=\"_blank\" rel=\"noreferrer noopener\">reducing the on-hand quantity of inventory<\/a> you state in your records.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-increasing-quantity-nbsp\">Increasing quantity&nbsp;<\/h3>\n\n\n\n<p>On the other hand, you could have more inventory units on hand than you had recorded because of counting errors and returns. In this case, you\u2019ll need to adjust recorded inventory to increase your inventory counts.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reevaluation-nbsp\">Reevaluation&nbsp;<\/h3>\n\n\n\n<p>Whenever you increase or decrease your recorded inventory count, you will also need to increase or decrease your inventory value. &nbsp;<\/p>\n\n\n\n<p>You will also need to <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-revaluation\/\" target=\"_blank\" rel=\"noreferrer noopener\">revalue your inventory<\/a> when you encounter changes in the cost of goods sold (often due to fluctuations in production cost and raw material prices), <a href=\"https:\/\/www.shipbob.com\/blog\/abnormal-spoilage\/\" target=\"_blank\" rel=\"noreferrer noopener\">abnormal spoilage<\/a>, fluctuations in exchange rate, and inventory obsolescence. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-ripple-effect-of-inventory-adjustments-nbsp\">The ripple effect of inventory adjustments&nbsp;<\/h2>\n\n\n\n<p>Inventory adjustments may seem like a hassle or a nuisance, but they ultimately benefit your brand. Here are some of the positive effects that inventory adjustments can have on your brand\u2019s operations and supply chain. &nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-enhanced-operational-efficiency-nbsp\">Enhanced operational efficiency&nbsp;<\/h3>\n\n\n\n<p>Inventory adjustments give&nbsp;you ideas for how to improve your operational efficiency. For example, if you are regularly adjusting inventory due to theft, that is a good indication that you need to improve your security measures. Similarly, failing to account for your returned items may point you towards improving your returns management process.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-improved-customer-satisfaction-nbsp\">Improved customer satisfaction&nbsp;<\/h3>\n\n\n\n<p>When you consistently adjust your inventory, you ensure that you\u2019re always working with the most up-to-date and accurate inventory counts. This means that you can trust your data when&nbsp;it indicates you\u2019re running low on certain SKUs, and you can therefore <a href=\"https:\/\/www.shipbob.com\/blog\/restocking-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">restock<\/a> your inventory on time without accidentally overstocking. This also helps you prevent <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">expensive stockouts<\/a> and backorders, since you can maintain adequate stock levels to satisfy your customers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-accurate-financial-statements-nbsp\">Accurate financial statements&nbsp;<\/h3>\n\n\n\n<p>For most ecommerce brands, inventory is their largest investment \u2013 so it\u2019s important that your financial statements accurately reflect the true value of that investment. Performing regular value adjustments on your inventory&nbsp;helps keep your financial statements accurate and orderly. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-more-informed-business-decisions-nbsp\">More informed business decisions&nbsp;<\/h3>\n\n\n\n<p>Inventory impacts so many of your business decisions, so you want to be working with the most accurate inventory data possible. By adjusting your inventory regularly, you can have more confidence in your inventory records and make more data-driven decisions regarding <a href=\"https:\/\/www.shipbob.com\/blog\/reorder-quantity-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">reorder quantity<\/a>, pricing, product mix, and more. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-make-inventory-adjustments-expert-tips-nbsp\">How to make inventory adjustments (expert tips)&nbsp;<\/h2>\n\n\n\n<p>Performing an inventory adjustment is relatively simple. First, you must conduct a physical inventory count to establish how much inventory you have on-hand. Next, compare that number with the amount of inventory you have recorded. If they do not match, identify the cause of the discrepancy and adjust your records to reflect the actual amount of inventory you have. &nbsp;<\/p>\n\n\n\n<p>Beyond those essential steps, here are a few expert tips to help you improve your inventory adjustment process.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-adopt-real-time-inventory-management-software-nbsp\">Adopt real-time inventory management software&nbsp;<\/h3>\n\n\n\n<p>The easiest way to simplify your inventory adjustment process is to minimise the need for adjustment in the first place. That\u2019s why it makes sense to invest in <a href=\"https:\/\/www.shipbob.com\/inventory-management\/software\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management software<\/a> that can update inventory counts in real-time as units are received, stored, picked, packed and shipped. &nbsp;<\/p>\n\n\n\n<p>Using a real-time inventory management system, a barcode on every inventory item is scanned as it moves through every touchpoint within your warehouse. This enables the system to update your records automatically. As a result, you are far less likely to lose inventory to misplacement or counting and clerical errors, which reduces the need to adjust your inventory later on. &nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cShipBob\u2019s reporting is very robust and meets all of our needs. We get visibility into receiving, order volume, SKU availability \u2013 everything from inbounds and inventory transactions to individual order statuses (whether it\u2019s on hold, in processing, an exception order, and other detailed descriptions). All this data is real-time, meaning that we\u2019re always seeing the most accurate, up-to-date information. Having this real-time data is crucial for my team, so the fact that there&#8217;s not hours of lag time waiting for data to update is huge.\u201d<\/em><\/p>\n\n\n\n<p>Ryan Steffenson, Senior Manager, Channel Operations at <a href=\"https:\/\/www.shipbob.com\/blog\/tonies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tonies<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-conduct-regular-inventory-audits-nbsp\">Conduct regular inventory audits&nbsp;<\/h3>\n\n\n\n<p>The longer you put off investigating your inventory records for discrepancies, the longer those discrepancies can wreak havoc on your inventory data. For that reason, it\u2019s important to regularly <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-audit\/\" target=\"_blank\" rel=\"noreferrer noopener\">audit your inventory<\/a> by:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Performing physical inventory counts at every warehouse or inventory storage location and comparing those counts to your records&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investigating any mismatches and pinpointing their causes&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Double-checking your purchase orders and invoices against receiving logs to make sure the correct amount of inventory was delivered to you &nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Determining whether to prioritize auditing certain SKUs (suitable for a regular audit) or to audit the entire <a href=\"https:\/\/www.shipbob.com\/blog\/catalog-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">product catalogue <\/a> (best if you have not performed an audit in a while) &nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hiring outside experts to audit your inventory without bias&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-leverage-inventory-analytics-nbsp\">Leverage inventory analytics&nbsp;<\/h3>\n\n\n\n<p>With access to detailed inventory analytics, it is easier to identify inventory discrepancies and nip them in the bud. &nbsp;<\/p>\n\n\n\n<p>By tracking metrics over time, you can begin to discover patterns in how inventory moves through your supply chain. If a metric is suddenly atypical, you can investigate the abnormality and correct any issues before those issues result in you having to adjust inventory. &nbsp;<\/p>\n\n\n\n<p>For instance, say the <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-turnover-ratio\/\">inventory turnover rate<\/a> for one of your most popular products drops very low one month. After investigating, you discover that the warehouse workers are not scanning each unit\u2019s barcode when picking it for an order, so your inventory turnover is higher and your records are off as a result. \u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-adjust-to-your-heart-s-content-with-shipbob-s-inventory-management-solution-nbsp\">Adjust to your heart\u2019s content with ShipBob\u2019s inventory management solution&nbsp;<\/h2>\n\n\n\n<p>As an expert ecommerce fulfilment&nbsp;partner, ShipBob\u2019s solutions are designed to make&nbsp;inventory management easy and keep inventory counts accurate. Here are just some of the ways that ShipBob can help you minimise inventory adjustments while improving your entire ecommerce supply chain. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-real-time-inventory-visibility-nbsp\">Real-time inventory visibility&nbsp;<\/h3>\n\n\n\n<p>The ShipBob dashboard provides real-time visibility into your inventory balance\u00a0across fulfilment centres, locations, and channels. Through direct integration with major ecommerce platforms, your inventory counts are automatically updated as orders are picked, packed, and shipping to customers. This level of <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-visibility\/\">inventory visibility<\/a> means you always have up-to-date data on where each item is stored and how much of it you have left.\u00a0<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1280px\" alt=\"\" class=\"wp-image-14402\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=700px 650w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=860px 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1180px 1080w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1400px 1280w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n<\/div>\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2022\/10\/b78956c954d5ea065cbfb4fc6d9a712f.jpg?w=1280px\" alt=\"\" class=\"wp-image-14336\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2022\/10\/b78956c954d5ea065cbfb4fc6d9a712f.jpg?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2022\/10\/b78956c954d5ea065cbfb4fc6d9a712f.jpg?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2022\/10\/b78956c954d5ea065cbfb4fc6d9a712f.jpg?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2022\/10\/b78956c954d5ea065cbfb4fc6d9a712f.jpg?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2022\/10\/b78956c954d5ea065cbfb4fc6d9a712f.jpg?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-comprehensive-analytics-nbsp\">Comprehensive analytics&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\" target=\"_blank\" rel=\"noreferrer noopener\">free analytics reporting tool<\/a> gives you comprehensive insight into your inventory performance at the SKU level. Leveraging key\u00a0<a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-analytics\/\">inventory analytics<\/a><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-analytics\/\" target=\"_blank\" rel=\"noreferrer noopener\">,<\/a> you can forecast demand, plan procurement, time replenishment, and improve your overall inventory management. \u00a0<\/p>\n\n\n\n<p>Brands can even use ShipBob\u2019s <a href=\"https:\/\/support.shipbob.com\/s\/article\/Inventory-Map-and-Distribution\/\">Ideal Inventory Distribution Tool<\/a> to calculate the most strategic split of inventory across ShipBob\u2019s fulfilment centre network to reduce shipping times and costs. (ShipBob can even physically distribute your inventory for you through our <a href=\"https:\/\/www.shipbob.com\/product\/inventory-placement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Inventory Placement Program<\/a>.)\u00a0<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=1280px\" alt=\"\" class=\"wp-image-14403\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=700px 650w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=860px 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=1180px 1080w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=1400px 1280w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-outsourced-inventory-management-nbsp\">Outsourced inventory management&nbsp;<\/h3>\n\n\n\n<p>Between renting warehouse space, receiving, stowing, picking, packing, and shipping, physically managing inventory can be time consuming and exhausting. ShipBob takes care of all of that for you, so you get time back to focus on your business. &nbsp;<\/p>\n\n\n\n<p>ShipBob\u2019s inventory management solutions are designed to scale as you grow into new countries and channels, and to always give you deep visibility into and <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-control\/\" target=\"_blank\" rel=\"noreferrer noopener\">control<\/a> of your inventory. &nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cPersonally, when I hear about people trying to do their own fulfilment, I&#8217;m kind of skeptical. Having gone through that experience of packing orders, I would tell anyone that&#8217;s thinking about starting a business that it&#8217;s really, really well worth your time to consider partnering with a professional like ShipBob. <\/em><\/p>\n\n\n\n<p><em>A lot of people think, \u201cI don&#8217;t need that,\u201d or \u201cI don&#8217;t want to waste money on a fulfilment provider.\u201d But in reality, partnering with an expert like ShipBob will free up so much of your time, speed up shipping, and lead to a better customer experience.\u201d<\/em><\/p>\n\n\n\n<p>Tyler McCann, Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/taste-salud\/\" target=\"_blank\" rel=\"noreferrer noopener\">Taste Salud<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-baby-doppler-adjusts-inventory-across-regions-with-shipbob-nbsp\">How Baby Doppler adjusts inventory across regions with ShipBob&nbsp;<\/h2>\n\n\n\n<p>Before Baby Doppler started working with ShipBob, they had worked with some large fulfilment providers along with smaller 3PLs. None of them were able to provide them with unified data to get a holistic view of their inventory, so they couldn\u2019t see which inventory was moving and where.&nbsp;<\/p>\n\n\n\n<p>Each fulfilment provider had a different reporting format, each of them incomplete. This meant that Baby Doppler was tasked with the nightmare of piecing all the data together from all these different sources to figure out what was going on.&nbsp;<\/p>\n\n\n\n<p>After partnering with ShipBob, Baby Doppler opted into the Inventory Placement Program. Immediately, they got the visibility and analytics they were looking for: real-time insight into how much inventory to allocate to a specific warehouse, their current on-hand inventory levels, and how long each SKU is going to last by location. &nbsp;<\/p>\n\n\n\n<p>With easily accessible information on inventory movement, Baby Doppler has been able to distribute inventory across 6 ShipBob fulfilment centres without losing track of it. Distributing inventory this way lets them ship 87% of their orders from Zones 1-4, speeding up deliveries and reducing shipping costs. &nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI don\u2019t want to have to ask multiple people for information or wait for reports on stock levels at various locations \u2013 and with the Inventory Placement Program, I don\u2019t have to. Now, I can literally go into my ShipBob dashboard and see exactly what I want to see with a few clicks. <\/em><\/p>\n\n\n\n<p><em>I love that it\u2019s a quick snapshot of everything that\u2019s going on. I can literally not look at the ShipBob platform for 3 weeks, and then log in and within 10 minutes of analising the data, I know exactly where we stand in the business. <\/em><\/p>\n\n\n\n<p><em>Even if I had to crunch some numbers, it would be just pulling a couple of reports and putting that data together \u2013 it\u2019s so much easier than other solutions. As a person who relies on data analytics to run my business, I want to see my analytics exactly how ShipBob displays them to me.\u201d<\/em><\/p>\n\n\n\n<p>Mithu Kuna, Founder and CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/baby-doppler\/\" target=\"_blank\" rel=\"noreferrer noopener\">Baby Doppler<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>To learn more about how ShipBob can help your brand track, manage, and <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-optimization\/\" target=\"_blank\" rel=\"noreferrer noopener\">optimise inventory<\/a>, click the button below. &nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\">Speak to a fulfilment expert<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-inventory-adjustment-faqs-nbsp\">Inventory adjustment FAQs&nbsp;<\/h2>\n\n\n\n<p>Below are answers to the most commonly asked questions about inventory adjustments.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What triggers the need for an inventory adjustment?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>Theft, damage, misplacement, waste, counting errors, returns, and clerical errors are some of the situations that necessitate an inventory adjustment.&nbsp;<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How often should inventory adjustments be made?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>Inventory adjustments should be made periodically, either in response to inventory audits, after major sales and promotions, or at least at the end of every financial year.&nbsp;<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Can inventory adjustments affect business profitability?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n<p>Yes. <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-accuracy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accurate inventory<\/a> counts help prevent stockouts and overstocking, saving a brand money and impacting its bottom line. &nbsp;<\/p>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to correct a mismatch between recorded inventory and actual on-hand inventory amounts with an inventory adjustment.<\/p>\n","protected":false},"author":194,"featured_media":14401,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-14399","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Are Inventory Adjustments? 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