Inventory Accuracy in the Oil and Gas Industry: 10 Things You Should Be Doing

In today’s economy, improving inventory accuracy is one of the most effective ways to reduce operational costs and avoid costly downtime. For businesses in the oil and gas sector, the stakes are even higher. Maintaining inventory accuracy ensures critical parts are available when needed, helping teams avoid production delays and maintain uptime. Below are ten practices to enhance your inventory control strategy and increase accuracy across the board.

1. Keep Transactions in Order

Delays in recording inventory activity lead to mismatches and inaccuracies. Establish a policy that requires staff to log all inventory transactions—such as moved, consumed, shipped, or returned items—within the same working shift. Real-time or same-day updates are essential to maintaining inventory accuracy.

2. Use Clear and Consistent Labels

Proper labeling of inventory items and storage locations ensures that nothing is missed or double-counted. Use system-printed labels that are readable, adhesive, and easy to update. Clear labeling is especially critical during non-productive time when parts must be located quickly.

3. Double-Check the Counts

Regular spot-checks by personnel not directly involved in daily inventory activities can reveal discrepancies early. Recount a sample of items each month and escalate to a full recount if repeated variances occur. During full stock takes, have managers review all variances daily.

4. Define What Is and Isn’t Inventory

Classification errors are a common root cause of inventory variances. Clearly define inventory versus non-inventory items in company policies, and ensure all team members understand what must be tracked in the inventory system.

5. Leverage New Technology

Modern inventory management tools—such as rugged handheld devices and real-time dashboards—enhance data accuracy and process efficiency. However, technology must be implemented correctly and measured accurately. For example, don’t confuse device syncing with actual usage for transaction entry.

6. Investigate Quantity vs. Quality Variances

It’s not enough to count items. You must also identify the root cause of any differences in expected vs. actual quantities. This includes understanding whether items were miscounted, misclassified, or inaccurately recorded during previous transactions.

7. Train Staff on Inventory Control Importance

Inventory control directly affects operational efficiency and profitability. Ensure employees understand their role in maintaining accuracy and how proper practices impact client satisfaction and the bottom line. Training programs, such as those offered by RigServ, can reinforce this understanding.

8. Implement a Cycle Counting Program

Outside of annual physical inventories, cycle counting should occur throughout the year. High-value or critical items should be counted more frequently. On rigs, materials personnel should be assigned weekly count goals, and installation managers held accountable for completion.

9. Invest in Impactful Reporting

Many teams are overwhelmed with irrelevant reports or lack training on how to use them effectively. Focus on reports that provide actionable insights and alert teams to developing issues before they escalate.

10. Consider External Support

Inventory control requires resources and time that many companies don’t have. If your team is stretched thin or lacks specialized tools, outsourcing to a partner like RigServ can bring structure, efficiency, and measurable improvement to your inventory program.

Partner with ALLSERV to Enhance Inventory Accuracy

ALLSERV specializes in helping oil and gas companies improve inventory management with expert-led audits, technology integration, and training. Our goal is to streamline inventory operations so you can focus on core business functions.

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Talk to us today about improving your inventory accuracy and control.