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For most companies, inventory management is the central point for all elements of the supply chain. Inventory is an important part of any competitive business, and a regular flow of inventory ensures the well-being of the business, especially for companies that deal in tangible goods. Globalization, consumer power, and technological advances have had a major impact on how the industry has managed its inventories over the past few decades. So what is the future of warehouse management? Well, let’s see.
In the context of globalization, companies face the challenge of realigning their supplies within their supply chains to achieve lower production costs and take advantage of the productive economies of remote regions. Supply chains have become more flexible, responsive and quality-oriented as companies become increasingly demand-dependent. Also, the evolution of technology with tools such as ERP, demand forecasting and planning systems, inventory management systems, etc. has helped to speed up the calculations related to inventory. They also improved the accuracy of the inventory records.
Inventory management is not a stand-alone process, but a higher-level process that must be integrated with other supply chain planning processes. The inventory associated with integration and automation brings with it new trends, and if these trends prove successful, it ultimately changes the face of the process.
Some future trends in inventory management are –
Application of artificial intelligence to warehouse management
Imagine, even before the customer clicks to buy, the stock knows it needs to be replenished because there is a 90% chance the customer will buy. Artificial intelligence made it possible. AI uses advanced systems that analyze unstructured data to identify buying patterns and dependencies and predict behavior. These systems can predict demand and plan inventories and the entire supply chain more efficiently.
In today’s world, variables such as season, weather and marketing campaigns can determine near-accurate forecasts of customer orders. However, the use of AI in inventory management goes beyond predicting consumer buying behavior. In some cases, artificial intelligence is being used for warehouse robotics, where warehouses can be controlled in the same way as humans.
There are still many advances being made in AI applications, and it would be interesting to see how these innovations could be of use to businesses in the future.
Focus on multi-channel inventory management solutions
When a consumer physically visits a retail store, the immediate presence of the exchange facilitates inventory management. The consumer leaves the store with the item in his possession and the item can therefore be immediately deducted from the inventory. But with online shopping, even though the product technically belongs to the consumer, it remains in stock until it is physically delivered, making the capital fixed.
Therefore, emphasis should be placed on cross-channel inventory management. To avoid incorrect figures, regular inventories should be carried out. Companies need multiple distribution centers because they can reduce delays and transportation costs. Moreover, stock-outs can be quickly resolved and replenished from other distribution centres. By using rules to automate shipping and order routing using advanced warehouse management software (WMS), you can decide which warehouse order should be filled.
Since sales are made online, in-store or through a mobile application, and inventories are spread across multiple sites, inconsistent data can result. It is therefore necessary that the connected systems receive the correct numbers. A point-of-sale solution and integrated inventory management ensure accurate figures.
Flow analysis
With the growing popularity of personalization and customer centricity, companies are turning to continuous analytics. Real-time data is used to implement solutions. This process is not new, but it is becoming increasingly important as it improves adaptation models and helps companies become more data-driven.
Retailers can better predict demand, avoid shortages and restocking, get up-to-date supply information, determine supplier performance based on real-time information, know when supply prices are changing and adjust their inventories accordingly – thanks to continuous analytics.
Inventory solutions for experienced buyers
As we all know, consumer behavior has changed, especially during the current COVID 19 pandemic. Customers can search for products and services online from the comfort of their chairs. In response to this evolution, brands are turning to experiential retail and making shopping an experience. To meet this requirement, many companies have opened experience centers or concept stores to attract consumers and introduce them to the product.
Stock management skills
As inventory management becomes more complex, skills must be adjusted accordingly. Many companies are moving away from manual processes and implementing software to reduce their reliance on Excel spreadsheets. Inventory specialists therefore need to know how to use the new tools.
In addition, inventory managers need to know the key concepts to stay abreast of upcoming trends and new technologies.
In summary, most trends are the result of technological progress. The above trends define the fundamental point that inventory management has improved over time, and that as technology improves, better inventory management trends will emerge.
The need of the hour is to spread out and help your business manage this change.
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frequently asked questions
What are possible future trends in inventory management?
7 inventory management trends retailers should be aware of
What is the future of warehouse management?
Future storage will benefit from automated capacity management using technology to improve data-based capacity planning. The result is a reduction in capacity planning errors, which can lead to lost revenue, and more efficient use of space, which translates into healthier outcomes.
What is the scope of the inventory control system?
The scope of the inventory system can cover many needs, including inventory estimation, measurement of inventory changes, and planning for future inventory. The value of inventories at the end of each period forms the basis of the financial information in the balance sheet.
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