To meet the needs and demands of the costumer, accurate information about how much is available in stock is necessary. When the information in the system does not match the physical inventory, inventory inaccuracy occurs. Inventory inaccuracy is common among companies and may contribute to increased labor cost, excess inventory, production disruptions, waste of time, late deliveries, poor service and lost customers.

The purpose of this study is to identify contributing factors to inventory inaccuracy for business with outdoor storage. The study also aims to investigate how efficiency factors can reduce the inventory inaccuracy for business with outdoor storage.

A case study was conducted to answer the purpose. A company in the steel industry was chosen to examine inventory inaccuracy on business with outdoor storage. During the case study a series of interviews was conducted with employees and managers. Together with information from observations and documents the information from the interviews was compiled into flowcharts.

Inventory inaccuracy affects companies with in many ways and leads to inefficiency. Incorrect inventory leads to unnecessary work and costs and can also contribute to a reduced efficiency for business with outdoor storage.

Inventory inaccuracy may be reduced with continuous inventory checks, simplified processes, more automation, enhanced information and communication. Improved routines can also help reduce inventory inaccuracy.

To increase efficiency, the staff must be seen as an important resource.