How Inventory Management Solutions Can Help Retailers Optimise Their Supply Chains Today
Author: George Pecchiar, Director of Professional Services and Software at Peacock Bros.
In a competitive market, the ability to accurately track and manage inventory can mean the difference between success and failure for retail and supply chain organisations. Inventory management systems, or IMS, are solutions that help companies track their inventory, from the moment it enters their supply chain, through to the product leaving the warehouse, entering a store, and leaving as a sale.
A recent IBM study found that 56% of retailers said that inventory accuracy was a problem in today's omnichannel environment. IMS solutions play a vital role in ensuring that companies have the right products in the right quantities, and at the right time, as inventory management technologies allow companies to have real-time visibility into their inventory.
This means that they can see exactly how much stock they have on hand at any given moment, as well as the status of any incoming or outgoing shipments. By tracking stock levels and identifying which products are selling well and which are not, retailers can make more informed decisions about what to purchase and when. By analysing sales data, an IMS can help retailers predict which products will be in demand in the future, allowing retailers to plan ahead and ensure that they have the right products in stock when customers want to buy them. This process can help them avoid out-of-stock scenarios, which can lead to disgruntled customers and lost sales from having no stock on hand for popular products.
Another important benefit of IMS is that they can help retailers and brands reduce their overall inventory costs. By keeping track of inventory levels and identifying slow-moving or excess items, companies can make better-informed decisions about what products to keep in stock and how much to order. This can help to reduce the amount of money tied up in inventory and increase cash flow. And as a result of having better visibility of the status of shipments through inventory management technology, companies can better plan for and coordinate the movement of products through the supply chain. This can help to reduce delays and improve overall supply chain performance.
A significant challenge faced by retailers today is not only knowing exactly what stock currently exists as sellable inventory, but also calculating the shipping time for that inventory, and then promising an accurate delivery time to eCommerce customers. An IMS can record and track every stock item received, picked, packed, and shipped through integrating inventory systems with barcode scanners, mobile computers, wireless LANs, and radio frequency identification (RFID) technology. This provides accurate and real-time tracking of products' movement and storage, ensuring accurate and up-to-date information about product availability, which can help to prevent customer complaints and improve customer satisfaction.
By having visibility of inventory levels and the status of shipments as a result of inventory management technology, companies can better plan for and coordinate the movement of products throughout the supply chain. This can help to reduce delays and improve overall supply chain performance by helping retailers identify bottlenecks in their supply chain, allowing them to take steps to address any issues. This can lead to faster turnaround times and improved customer satisfaction.
Inventory management systems are vital tools for retailers and supply chain organisations looking to optimise their inventory and improve their financial performance. They can help to improve efficiency, reduce costs, and improve customer service which will ultimately enhance overall business performance.
For more information on how inventory management systems can help improve your business, please visit: https://www.peacocks.com.au/