How to stay on top of your inventory?
Have you heard the saying ‘Don’t count the chickens before they hatch’? If you ask me, that person never knew anything about managing his inventory. It is really important to keep count of the things you have, what you think you need, and what you might actually need.
Inventory management has become so important now during the pandemic, that people are even counting the noodle packs they have and downloading apps to keep a tab of when they will run out.
My example is very commonplace, I know, but think of the big picture. As a supplier or a manufacturer, the key to success is accurate inventory management.
What is Inventory Management?
So, picture this- you are tracking orders on a spreadsheet, and you have four hundred extra packages that you did not actually account for- three words- Automate Inventory Now!
So, inventory management basically is having an automated eye out for the flow of goods that come down from manufacturers and warehouses and from other facilities to stores.
I am going to give you 5 reasons why you need to start taking inventory management seriously.
Why do you need Inventory Management?
Inventory, speaking plainly, is all the goods that you have stored in your warehouse, distribution centers, or other facilities that you plan to sell. An inventory thus is an asset and having the right physical inventory count that matches with your inventory tracking system means good business.
So, let’s start with number 5 on our list. If you find more, then write to us with your suggestions – all the more a reason to explore inventory management with us.
Reason No 5: To keep track of your inventory
This is perhaps the most obvious reason, but it does warrant an explanation.
Inventory Management is at the core of supply chain systems. Manufacturers and suppliers are always in constant need of being educated of their inventory levels. This ensures in having abundant products and spares to meet immediate customer demands.
Automation can make inventory management easier, faster, and better. While keeping the inventory levels in check, inventory automation can notify the managers if any stock levels are low. It can also automatically render and record product information that goes below a preset level.
This greatly assists in making the inventory management process efficient and user friendly which can tolerate and manage any unforeseen hike in demand for the product in the future. When it comes to restocking inventory, enhanced insights obtained from automated supply chain processes can lead to optimum results. Human input related to the monotonous task of maintaining records of inventory levels gets reduced which helps employees to concentrate on other essential areas where their expertise is required.
Reason No 4: To cut costs
Who doesn’t love to see all their products flying off the shelves, and having just the right amount to spare in case of emergencies? And that is why automated Inventory Management can be such a boon. Excess stock manipulation and towering back orders are reduced with smart automated reporting and delivery. Having the right inventory management solution can ensure that you know what batch is hitting the right mark as against what needs to go RIP. Yes, that sounds harsh, I know. But if you can cut costs by making the right choices, isn’t that a better way to improve your delivery and ace at your customer expectations?
Reason No 3: To reduce time taken to manage your inventory
When it comes to manufacturing ‘Time=money’. So having your orders tracked and automating your reporting and delivery through automated inventory management processes can go a long way in not just reducing the time you spend in tracking your products and in glancing through the inventory recounts with all your records in place.
Reason No 2: To plan manufacturing and production
Having a production or manufacturing plan means making sure you have the right raw materials, equipment, and labour to complete all the orders that will pour in once you send them to market. So, what inventory management basically does is to help you avoid guesstimates and meet large orders more confidently with a dynamic production planning process in place.
Reason No 1: To improve operational efficiency
Many of you may disagree with me, and you may be wondering why I stress so much on operational efficiency. But that is the crux of inventory management, to ensure a hiccup-free process. If your company’s goal is to effectively deploy all your resources, reduce your production downtime, stay up-to-date with where you are headed, then the first place to look is inventory automation.
Well, maybe I have convinced you to think about inventory management solutions but let me give you a fair warning about the challenges that may come your way, when you brave the seas.
Challenges in Automating Inventory Management
Let me come to the challenges part now, where it is that you usually hit a roadblock when it comes to automating your inventory.
Automating Warehouse
Warehouse automation is one of the emerging avenues and issues in inventory management. If it is implemented correctly, it can remove most of the possible bottlenecks and streamline the warehousing business.
Integrating IT Peripherals
Integrating automation processes into the existing modules can be a time-consuming task. That is why utilizing appropriate IT solutions is necessary to strengthen the process altogether.
Standardizing Processes
Automated processes in inventory management have the potential to be treated as standard operating procedure. It can be leveraged to bring out the best in quality performance and prove to be an efficient inventory management system.
Solution Digression
Earlier automation was a stagnant process, given the slow comprehension capacity and lack of infrastructure. Even with the advent of Artificial Intelligence, solution flexibility though can be added to every stage of automation, but agility is still perceived as a hindrance.
Expectations of Investors
Investors and stakeholders pose a challenge because they at times have been very unwelcoming of the idea for automating processes in supply chain and inventory management systems. Differentiated opinions of various parties involved become a buffer for the right solutions to be implemented and as a result the whole automation process suffers gravely.
Well, some of these challenges you need to overcome yourself, and for others, you need to find the right solution provider. Inventory management is important for you to succeed in manufacturing. Having the right leash on your inventory means having control over the profits you (and in turn your employees) receive.
Write to us to know more about our services, about how we helped an auto manufacturer to digitize their inventory management process, or if you would like a hand in steering your ship with our automation solutions.
