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How are Innovations Changing Inventory Management

By Logistics Tech Outlook | Tuesday, October 22, 2019

Right technology in the supply chain inventory levels provides guidelines for better inventory management in a dynamic supply chain environment.   

FREMONT, CA: Today's consumers want to produce their orders in a day or less. Providers expect a company to stock up without their support to fulfill those demands. And the CFO of the company is asking why the rates of stock in the world and their associated costs have recently passed through the roof.

Industries supplying services and products are already struggling with labor shortages and increasing demand due to e-commerce. But diminishing warehouse jobs and an overabundance of stocks have generated warehouse chaos due to fears of third world tariffs. As per a number of industry experts and customers, inventory management in 2019 has become an even more complex challenge.

Keeping excess inventory may resemble a logical solution to the fast-paced world of fulfillment today. Customers put small orders within a day (or less) and want them. Getting to know these demands before having to over-stock involves a daily balancing act of lower production prices, guarantee the ability to deliver and maintain high customer service rates.

Manage inventory levels

Management of inventories is a broad definition, as ground robots are a good selection for cooperative or robotic loading. On the other hand, aviation drones can easily fly over hard-to-reach areas, providing a better way to boost inventory control and counts. For both approaches, the advantages are very similar, including reduced employment costs, improved operational performance, security, scalability, and versatility. The main drawback is that they may not be a good fit for all forms or sizes of operations.

Inventory in transit

Ironically, corporations have introduced innovations to optimize security storage opportunities and are investing continuously in the solutions necessary to minimize security inventory. For most businesses, the most significant opportunity lies in inventory management.

A company will continue to thrive from more strategic supply chain planning when using cycle inventory approaches to band goods together and coordinate production schedules. Nevertheless, against their vital strategies, these companies have not related supply requirement preparation, finite scheduling, and transport implementation.

For most businesses, the greatest opportunity resides in inventory control, and period stock or the component of inventory required meeting typical demand throughout any specified period. The key issue is the lack of knowledge of stocks by management. Most of them see the stock as a big "slop pot" they can put their hands in and draw the quarter's cost savings. The question is that this is not how it works.

Considering inventory the "most critical shield" in the distribution chain, executives need to question in today's competitive business environment if holding a stock is good or bad. The response is "a good thing" in most situations, but it has to be the right stock.

The Correct Innovation

Access to correct inventory data and location is, in the expert's opinion is a problem that only technology can overcome. Robotics solutions may not address all stock management related issues. Nevertheless, they enable large and small businesses to use unmanned aerial technology and robotics, paired with computer vision software, artificial intelligence, RFID sensors, and cloud computing to improve accuracy significantly.

In addition to having an edge in knowing inventory levels and being able to move inventory more efficiently throughout the supply chain, these businesses are also creating healthier working environments. Redirecting their workers to handle high-value tasks and engaging their teams with valuable details, which can then be replayed at any moment and can be used to make smart decisions.

Check This Out: Top Inventory Management Solution Companies

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