Inventory management is the continuous ongoing process of producing or transporting raw materials, parts or finished products into and out of company’s warehouses and other location(s). These day companies need to manage their inventory daily. Managing the inventory actually means that new orders for various products which customers have requested are placed and then when the product arrives it is shipped to the customer that ordered the product.
Since the inventory management forms the backbone of any business, it becomes essential to have a very firm grasp of everything that goes in the whole inventory cycle from arrival to departure. Every possible step must be taken to find the right and creative solutions towards an intuitive inventory management.
In an intuitive inventory management the company warehouses are stocked with all the goods that are needed by the customers. When those products and goods are sold, care must be taken in replenishing at a rate which does not lead to overstocking and under stocking both. Intuitive inventory management is like hitting a moving target because with the internet and globalization the market trends changes within a fraction of hour.
The demand is ever changing and not constant so the supply and all company operations have to adjust to move at the pace of the demand. Since with the increased interconnectivity of web portals, internet and cloud servers, orders come from different countries which have different tax rates and laws not to forget the change in units of measure. Solving these problems will heed the path towards an intuitive inventory management.
To solve these challenges, companies are using software’s to track the inventory, orders, vendors and retail stores. Small scale business’s manually write on a register or use Microsoft Excel to help them keep track because it’s the cheapest way of doing it, but these things lack the comprehensive features of analyzing data and spotting trend in sales. It consumes a lot of time since there is no barcode scanner to speed up the process of monitoring inventory or to retrieve it if needed.
However big companies observe patterns and correlations of their product demand among their customers and make supply chain decisions according to them using very advanced machine learning languages and optimized algorithms. These algorithms are developed by feeding past history information in it. With the advent of internet of things, this scenario becomes even more interesting. With internet of things, whole of the world and products are connected with each other with the use of internet. Internet of things can generate even more real-time data of products.
Companies can know customers likes and dislikes in advance and show products according to it. Internet of things can help a long way when it comes to replacement of products. Another key technology that plays a very important part is Big Data. Prescriptive analytics is the biggest use of Big Data and can also change the prices of product for different customers based on their past sales and viewing history and can deeply help companies to understand customer purchase decisions.