Standard problems with inventory management and how to fix them!
Posted by resionllc on September 27th, 2022
Inventory management is one of the key processes in an e-commerce industry where stock updates of the products must be updated repeatedly for a smooth flow of deliveries. To achieve adequate management of inventory, the adoption of the latest technologies is a great solution. Using these new technologies can help you to enhance your business capabilities. Despite knowing this, many companies face inventory management challenges. Some of the top inventory management challenges businesses can face are –
Supply disruptions –
The Covid-19 pandemic has shown us how global supply chains can bend or break down, specifically if they are not built for resilience. In the past, businesses prioritized efficiency and cost savings over stability. However, in the wake of the pandemic, many businesses have shifted their attention to safeguarding against supply chain disruptions by, among other things, switching to near-shore or local suppliers, establishing supply chain risk management teams and procedures, and implementing new forms of technology to improve supply chain efficiency and visibility.
Inadequacy of supply chain visibility –
You may have inventory visibility problems when your inventory becomes hard to search. Lack of visibility is one of the most common inventory management issues. Looking for the correct item in the right place as quickly as possible is important for inventory management. A stumbling block in the manufacturing supply chain, such as a lack of readily available inventory, can have a cascading effect on the efficiency of the whole operation. For example, incomplete or incorrect shipments significantly affect customer satisfaction if the inventory stock being accessed for shipping cannot be discovered.
Lost, damaged, or stolen items –
It is quite difficult to keep tabs on the whereabouts of a specific item throughout normal business operations if no comprehensive inventory management system is in place. For instance, construction contractors are likely to have several crews at different sites using dozens of pieces of equipment each day. With so much going on, there is no doubt that some items may be left behind at a job site or even “walk away” with an employee. Apart from this, items and equipment may get damaged on the job without explanation or accountability.
So, meticulous inventory management is mandatory to lessen or prevent these situations from occurring. With the help of the right software, you can gain oversight of your inventory without babysitting each piece of valuable equipment.
Cost inaccuracies –
We all make some mistakes. Some mistakes, like manually entering a UPC into a spreadsheet incorrectly, can be chalked up to a human error. Some errors, such as incorrectly estimating project costs due to outdated stock counts, are more serious than others. According to a stat, the average US retail operation has an inventory accuracy of only 63%. Thankfully, many errors may be avoided with the use of effective management software. Inaccuracies in inventory count can be reduced with the use of a state-of-the-art inventory management system. For instance, using barcodes consistently helps cut down on human mistakes. Knowing what resources are on hand and what needs to be ordered allows for a more accurate estimation of a project's time and money requirements. You will spend less time searching for transposed numbers in your spreadsheets and can confidently meet your client’s expectations.
Lack of centralization –
In small businesses, centralization is not a problem, as all their inventory is stored in one location. However, as companies grow, they expand their inventory to various locations. Manual maintenance of inventory records is very daunting to communicate and access inventory data across multiple sites. These manual reports and lists do not show the real-time stocks of inventory. Disconnected data can be one of the causes of delayed or incorrect shipping. Apart from this, management can't get an accurate real-time report on all of their inventory across various locations.
How does AI-driven inventory management software help tackle supply chain challenges?
AI-driven inventory management software can administer end-to-end supply chain visibility with demand and inventory tracking, demand forecasting, and real-time warehouse operations and supply chain data. An example of this can be inventory management solutions using AI algorithms for accurate demand forecasting. This software can pull all the data on sales, financing, changing consumer requirements, and market trends to foresee demand. Since firms can easily adjust to changes in demand, they never have to worry about running out of stock or stockpiling unsold goods.
On the factory floor, in storage, or in transit, inventory can be tracked automatically and in real-time, thanks to IoT integration in inventory management software. This may eliminate the guesswork and introduces data-driven decision-making in inventory management solution. This inventory and warehouse management software makes it simple for organizations of all sizes to keep tabs on their stock levels, analyze key performance indicators, and learn how to maximize their inventory.
So, the aforementioned are some of the top inventory management challenges various companies can face. If you are looking for a reliable inventory management system, consult our expert team at Resion today! Call (516) 742-6300 for their expert guidance.
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About the Authorresionllc
Joined: August 17th, 2022
Articles Posted: 2
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