The propensity of growth in the supply and demand and the increasing complexity of processes and tools for addressing them are continuously on the rise.
It is the fulfillment of customer requirements that takes the front seat among all considerations now.
This is exactly where the role of a precision-driven and structured inventory management solution appears to be important. Any state of the art automated inventory management technology fulfills this objective.
Throughout this post, we are going to explain the importance of inventory management techniques and the key technologies that are playing an important role in shaping modern inventory management.
Inventory management designates all the activities corresponding to the business inventory that ensure a continuous supply of products as per the customer demand while maintaining the cost of inventory lower.
Inventory management is the key component of supply chain management ensures optimum control for the business managers in meeting the demand of products with consistent supply.
The smooth and consistent flow of supply improves brand reputation and ensures capitalising on the demand for garnering better revenue.
With great inventory management powering the retail sales and business branding, a company gets an edge over the market competition. Leading inventory management software development solutions are developed to meet these objectives.
Can you think of a warehouse that keeps picking products before the actual demand is registered? Yes, this is what is made possible by predictive artificial intelligence-powered analytics.
Where the demand is likely to increase in a short time is precisely predicted based on previous buying behaviour, season, market vibe, and a host of other variables, and accordingly the products are picked from warehouses in advance.
Across the e-commerce stores, there is a greater emphasis on personalisation to boost customer engagement and drive sales.
This is more about getting data-driven insights on customer’s buying habits and accordingly helping them to find products that they are likely to prefer.
Amazon used this personalisation to an astounding level of success. No wonder, their personalised recommendation engine garners around one-third of the total sales for the retailer giant.
The impact of this personalisation on inventory management can be understood with a complex maze of different variable factors that the analysis tools need to analyse for managing inventory to cater to the demands.
The real-time data streaming about the product movement has been adopted by big retailers to make the balancing act between personalised recommendations and responsive inventory management systems.
RFID or radio frequency identification works more like traditional barcode tracking. The only difference is instead of the barcode the attached microchips of the stocks are connected to a radio antenna.
RFID warehouse inventory management basically works through a reception device to receive and monitor signals from different microchips attached with stocks within a premise. This allows scanning all the product movement together from a zone instead of scanning every product separately.
Whenever the stocks go out or come in, the inventory database is automatically updated with the correct numbers along with a timestamp.
Apart from maintaining an automated inventory registry, RFID identification also helps easily locating the product stocks in warehouse shelves when they are picked for delivery.
Robots are increasingly getting popular as inventory management, new technology and as a modern warehouse management solution. Robots are helping automation and facilitating streamlined operations.
Intelligent warehouse robots equipped with sophisticated navigating capability and computer vision are making things easier by speeding up inventory operations while committing fewer errors.
Fully equipped with sensors and scanners, the intelligent AI-powered robots are several times quicker in carrying out warehousing and inventory tasks to streamline operations for modern retailers.
The inventory and supply chain professionals focus upon reducing the customer outs in buying products and actually getting their hands on them. The less effort is required for purchasing products, the more customer satisfaction can be guaranteed.
This is where omnichannel inventory control sets in. Since omnichannel is basically the accumulated network of virus channels that customers interact with for purchases and product browsing, by keeping an eye on omnichannel engagement and interactions, a brand can know where customers need to put maximum efforts.
The omnichannel inventory control and management help a business brand to maintain a consistent shopping experience irrespective of where they interact and how they interact with the brand.
The most successful inventory management depends upon how you allow customers interactions across multiple channels without negatively impacting their customer experience.
Read More: The Future Of Retail: Why Retailers Should Rethink Omnichannel Marketing?
Blockchain as the decentralised database technology which offers equally secure fully tamper-proof data storage and completely open and democratic data access across multiple user points has been embraced by all leading businesses across the niches.
Because of the transparency and decentralised access for multiple users without the slightest scope of tampering, blockchain technology perfectly fits into the warehousing, inventory management, and supply chain management tasks.
From inventory tracking to carrying stock audits to payment processing, in a multitude of ways Blockchain can really revolutionise modern inventory and supply chain management.
Whenever a product moves from one point to another or changes hands, the data is registered and thus a comprehensive history of every product throughout the supply chain can be maintained. Most notably, any data in the Blockchain can be updated with separate entry but no data can be changed, deleted, or tampered with.
Since inventory management is the most critical building block of the retail supply chain, companies always focus on using the most sophisticated technologies to improve inventory control, monitoring, and management.
All the above-mentioned technologies that made inventory management trends 2020 can really help a brand garner a competitive edge with efficient output. With these technologies, customer effort in purchasing products can be reduced to the minimum.
WRITTEN BY: Atman Rathod
Atman Rathod is the Founding Director at CMARIX Technolabs Pvt. Ltd., a leading web and mobile app development company with 17+ years of experience. Having…
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