How to automate inventory reconciliation using Parabola
Compare inventory data across your ERP, sales channels, and WMS systems with live connections to all of the platforms and data streams you rely on. Prevent critical inventory issues and adapt in real time to changes in your supply chain, like changing 3PLs or new retail locations.
- Pull inventory data from systems like your ERP, WMS, and/or sales channels using steps like Pull from Shopify.
- Standardize the data by cleaning SKU values and renaming columns using steps like Edit columns, Extract with AI, and Standardize with AI.
- Using the Combine tables step, join the datasets by merging based on shared identifiers such as SKU and warehouse location.
- Calculate discrepancies by applying the Add math column step to compute and identify mismatches between inventory values across systems.
- Use the Add if/else column step to assign statuses to categorize records, creating a column for statuses such as 'Validated' or 'Discrepancy Detected' to flag issues.
- Alert the team of discrepancies by adding an Email a file attachment step.
- Ensure visibility into inventory health by creating a real-time dashboard using a Visualize step at the end of your Flow.
Video overview
Why Parabola
Automating inventory management in Parabola has been a huge unlock for growing our business—we can finally keep up with demand and plan for future growth.
Inventory reconciliation is the process of comparing inventory levels across siloed systems (like your ERP, WMS, and sales channels like Shopify) to ensure accurate and consistent inventory data. This prevents stockouts, mitigates negative customer experiences, and enables proactive inventory decision-making.
Start by pulling data from Shopify, Netsuite, and your WMS into your Flow. Then, combine the data from across your sources based on identifiers like SKU and warehouse before doing a math calculation to identify discrepancies. To action on this data, create a dashboard, trigger a Slack message or email, and/or automatically update inventory levels across systems so you're not just identifying inventory issues — you’re mitigating them.
- Standardize SKU values and column names early in your flow for seamless joins and easier downstream data transformation using steps like Edit columns, Extract with AI, and Standardize with AI.
- Be thoughtful about which inventory columns to compare, considering values like 'Available,' 'On-Hand,' and others relevant columns for your workflow.
- Consider incorporating root cause analysis to identify patterns and potential integration issues (e.g., unsynced SKUs or system errors) to minimize future mismatches.
- To start building your own inventory reconciliation Flow, use the Template above and check out Parabola University.
- Explore this inventory reconciliation demo video.
- Automate three-way PO match reconciliation by comparing purchase orders, receipts, and invoices to prevent overpayments and ensure financial accuracy using our free template.
Best practices for inventory reconciliation include standardizing SKUs and warehouse codes across systems, reconciling on a consistent cadence, and using automation to flag discrepancies instead of reviewing every record manually. Many supply chain leaders also recommend pairing reconciliation with periodic cycle counts to validate physical stock. Learn more about inventory reconciliation best practices.
Most companies rely on a combination of ERP platforms like NetSuite or SAP, WMS systems for warehouse counts, and spreadsheets such as Google Sheets or Excel. Some also use data-prep tools like Alteryx or reconciliation modules inside ERPs, but these typically require technical expertise. Parabola differs by connecting directly to ERPs, WMS, and sales channels, allowing operators to automate exception handling and eliminate manual spreadsheets. For a full list of Parabola’s inventory management capabilities, explore our solutions page.
The right frequency depends on order volume and complexity. High-volume retailers often reconcile daily or weekly, while smaller businesses may only do so monthly or quarterly. Automating reconciliation with Parabola makes it possible to run checks more frequently and prevent stockouts without adding headcount.
Poor reconciliation can lead to stockouts, excess carrying costs, inaccurate financial reporting, and compliance issues. When mismatches go undetected, operators often spend hours manually fixing records. Read up on six improvements you can make to your inventory reconciliation process.
