Inventory Discrepancy Tracking: Finding Variance Fast Before It Becomes a Customer Problem

Discrepancies are not rare, they are what happens when visibility slips

Inventory discrepancy tracking matters because inventory variance is one of the fastest ways to break customer promises. Research shows that when inventory data drifts from physical reality, brands oversell, delay shipments, and waste labor hunting for items that are not where the system claims they are. Discrepancies often start small, then spread into big operational problems if they are not caught quickly.

Many brands come to G10 after realizing their inventory problems are not always about buying the wrong amount. They are about not knowing what changed, when it changed, and why. Inventory discrepancy tracking is how you stop treating variance like a mystery and start treating it like a solvable process problem.

As Maureen Milligan said, "Most of the customers who come to us from another 3PL, their challenges have always been access to their data, order accuracy and efficiency, and basically just meeting the committed requirements. So we've seen a lot of people come disillusioned by their last 3PL, where their orders weren't getting fulfilled in time, their inventory accuracy was not there, and they were not able to satisfy customer orders." Discrepancy tracking is a practical way to improve inventory accuracy and reduce disillusionment because it creates clear signals when counts drift.

Discrepancy tracking starts with real time inventory events

Inventory discrepancy tracking works best when you can compare the system record to real time movement events. If inventory updates happen late, discrepancies appear after damage is done. Real time event capture helps teams catch variance earlier and prevent customer-facing problems.

Bryan Wright described the level of event tracking that makes real time visibility possible when he said, "Absolutely. We have portals that show you the data. We have history that shows you all of that tracking. It shows the product landed on the dock at 8 o'clock. At 8:10, John picked it up and took it to location XYZ, and at 10 o'clock, we picked two items off of that pellet in the location 1, 2, 3, 4, order, you know, ABC, and at 11 o'clock, we packed it, we put it in this box and put this label number on it, and all the way through the process onto the truck and to the customer." Inventory discrepancy tracking relies on that same kind of timestamped record for receiving, movement, picks, and adjustments.

Scan-based workflows keep discrepancies from multiplying

Discrepancies multiply when inventory moves without being recorded. Scan-based workflows are the defense against silent movement. If every move is scanned, the system record stays aligned with reality, and discrepancy tracking becomes a targeted tool rather than a constant firefight.

As Connor Perkins said, "You want everything to be scanned in the warehouse, nothing done on paper. You can lose a lot of money in this industry by you know having people ship stuff wrong, or store it wrong, and now it's lost somewhere. So having a 3PL and WMS that is 100% scan-based is crucial." Discrepancy tracking depends on scan discipline because scans create the evidence needed to isolate where variance began.

Connor also said, "One of the pain points our clients have experienced with previous 3PLSs is inventory accuracy; maybe their previous 3PL wasn't great at picking the orders accurately. So they were losing money by shipping wrong items or wrong quantities of items." Discrepancy tracking helps identify whether the root cause is picking, receiving, putaway, or adjustment behavior.

Receiving discrepancies should be flagged immediately

Many variances start at receiving. If inbound inventory is short, mislabeled, or received to the wrong SKU, the system begins with a mistake. Research shows that receiving variances are a common driver of inventory inaccuracy because the warehouse builds on a flawed baseline.

Inventory discrepancy tracking should flag mismatches between expected and received quantities quickly, and it should link those mismatches to the receiving event so brands can determine whether the supplier or the receiving process caused the issue.

Location discrepancies create wasted motion and late orders

Even when counts are correct, location discrepancies can cripple fulfillment. If the system says a SKU is in one location but it is actually elsewhere, pickers waste time searching. Research shows that location accuracy is a major driver of pick speed because searching is pure waste.

Discrepancy tracking should detect location patterns, such as frequent relocations without scans or recurring missing inventory in specific zones. These patterns often point to training gaps, labeling issues, or process shortcuts.

Cycle counts are the correction mechanism, discrepancy tracking is the learning mechanism

Cycle counts correct inventory. Discrepancy tracking helps you learn why inventory needed correcting. When cycle counts are connected to transaction history, the business can see what events likely caused the variance. Research shows that targeted cycle counting improves accuracy faster than random counting, especially when discrepancy tracking highlights the SKUs and locations most likely to drift.

Discrepancy tracking also helps determine whether a variance is a one-time event or a repeated pattern. Repeated patterns are what justify process changes.

Adjustment discipline separates controlled variance from chaos

Inventory adjustments should never feel random. Discrepancy tracking becomes much more useful when adjustments are transparent and auditable. If adjustments happen without context, the system becomes a black box, and trust disappears.

Discrepancy tracking should tie adjustments to reasons, timestamps, and users. That makes it possible to see whether certain SKUs, workflows, or shifts generate more adjustments than others. Research shows that transparent adjustments improve accuracy over time because teams can identify root causes and fix them.

Portals make discrepancy tracking accessible to brands

Inventory discrepancy tracking is most useful when brands can access discrepancy signals without waiting for an email. A portal that surfaces inventory accuracy and inventory levels makes discrepancy tracking practical for planning and troubleshooting.

As Maureen said, "We're in the last stages of developing a new portal that will give customers real-time visibility to their on-time order fulfillment, inventory accuracy, and even inventory levels so that they can monitor those things directly in our systems." Discrepancy tracking improves when brands can monitor inventory accuracy directly and spot drift quickly.

As Connor said, "Our clients get best-in-class visibility and transparency. They can see their daily orders, they can see KPIs, and they can see historical transactions. They can look at a daily level or go into the more granular version where they're looking at transactional history on an item." Discrepancy tracking depends on transaction history because the story of a discrepancy is in the transactions.

He also said, "You have easy access to reporting and you can export to Excel, or really any format that you like you know directly from our WMS portal." Exportable reporting helps brands audit discrepancies and share root-cause findings internally.

Discrepancy tracking reduces oversells, stockouts, and support tickets

Discrepancies are expensive because they create surprises. When discrepancy tracking is strong, teams catch variance before it becomes a stockout or an oversell. That reduces backorders, prevents canceled orders, and lowers customer support volume. Research shows that inventory accuracy is one of the most important inputs for a predictable post-purchase experience because inventory truth determines whether orders can ship on time.

As Maureen said, "We will take in your inbounds, we will get them received and reported back to you within our SLAs, and oftentimes more quickly than what we contracted for. We will ship your orders out the day they're required. And our inventory accuracy is generally right there at that 99.7% that we agreed. So that's one of the areas where we really do excel, and where we've been able to win business." Discrepancy tracking supports that accuracy by catching drift early and making causes visible.

Discrepancy tracking rebuilds confidence after bad inventory data

Brands often switch 3PLs because inventory stopped being believable. Variances piled up. Planning became impossible. Discrepancy tracking rebuilds confidence by making variance measurable, explainable, and fixable.

As Maureen said, "For customers who have come to us from a bad 3PL relationship, they experience relief. They're suddenly seeing their business scaling, that the data supports what we agreed to, and then the trust begins to build." Discrepancy tracking contributes to that relief because inventory truth makes growth feel manageable again.

Inventory discrepancy tracking is now essential

As fulfillment speeds up, inventory drift can become customer damage quickly. Inventory discrepancy tracking requires real time event capture, scan-based execution, portals that expose accuracy signals, and reporting that connects discrepancies to transaction history.

As Connor said, "This is one of our strengths. G10 is on the cutting edge for this kind of transparency and feedback for clients." If your brand wants fewer oversells, fewer stockouts, and fewer days lost to reconciliation, discrepancy tracking is a practical place to focus.

If you want to see what discrepancy tracking looks like when every movement is recorded and variance signals are visible in real time, ask for a walkthrough that maps your current inventory surprises to a clearer, more defensible visibility model.