A Leap of Faith or Touch of Technology: What Defines Efficient Inventory Management?

Employing robotics, artificial intelligence, and radio frequency identification sensors enable companies to gain real-time access to accurate inventory related information.

FREMONT, CA: Ever purchased anything on e-commerce websites to find out at the end of the transaction that the ordered item is out of stock, and now you have to wait for the further notification to get the product updates? If yes, then you have experienced an underlying case of disorganized inventory management. However, inventory managers have to regularly deal with complex challenges at every stage of the supply chain, which causes a disruptive flow to inventory dynamics.

Traditional inventory management methodologies are proving to be very costly as inventory prices have skyrocketed from 2010 to 2018. Furthermore, the climbing cost has compelled the CFOs to question their age-old inventory management techniques. To find practical solutions for a problem, you have to identify the downsides that have contributed to the escalation.

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Unfortunately, year after year, the companies are investing in maximizing the opportunity for attaining a large safety stock. With the exclusion, a portion of inventory remains missing from the actual storage books creating a stock famine in the market ecosystem. In addition to inventory in transit, the companies have disconnected distribution planning systems resulting in a limited tactical efficiency. However, the biggest issue always remains with choosing experts who thoroughly understand the interior and exterior of the inventory management process. Many a time leaders’ views inventory as just a storage extension from where they can generate profit whenever necessary. The attitude to treat an inventory as only a storage unit and hold onto stocks in the dynamic business environment is degrading the logistics chain.

Choose the Right Technology

The ongoing technological renaissance with robotics, artificial intelligence, and radio frequency identification (RFID) sensors has the potential to unlock several gateways in inventory management. From large to small scale companies with the integration of analytical platforms will gain real-time access to accurate inventory information and locations. Besides gaining informative tools, with the technological uprising, the industry experts will have a better understanding of inventory levels and storage dynamics throughout the supply chain. Error analysis of data gathered from the internet of things (IoT) sensors is creating a risk-free working environment and redirecting employees to handle high-value activities.

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