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How Advanced Inventory Management Software Transforms Supply Chains

An inventory management software is a tool primarily designed to help businesses streamline the management of their inventory/stock and order. In the case of advanced inventory management software, they use sophisticated computer algorithms and statistical models beyond what basic stock management and order control programs are capable of. Advanced inventory management software deploys data analytics to gain insight into business records, interpret the data and predict future market trends across the various stages of the supply chain.

Since the introduction of the Universal Product Code (UPC) in the 1960s, and most especially in the 90s after the introduction of computers, inventory management solutions have grown in leaps and bounds. Prior, human-manual methods of stock control were in use, but it became apparent they were too laborious to handle large-scale business data efficiently. Humans will spend a lot of time analyzing complex data yet have a wide margin for errors in computing the data. Therefore, there has been an ever-growing demand by businesses for automated inventory control solutions capable of analyzing business data and predicting future market trends.

Insight to Inventory Management Software in Supply Chain

An inventory management software in the supply chain is to a business what the central nervous system is to the human body. It is designed to automate tasks, track data, and provide meaningful business insights to improve overall efficiency and reduce operation costs. Warehouse inventory management software is also sometimes referred to as inventory conductors because, through insightful data, they enable businesses to have the appropriate amount of their product, in the right place, at the right time.

Features of Advanced Inventory Management Software

In addition to tracking, order management, scanning, and data import/export (basic features), advanced warehouse control management systems integrate features that enhance efficiency, accuracy, and cost-saving decisions. They include:

Automated Reordering

Automated reordering is integrated with suppliers and the organisation’s procurement system to initiate a purchase reorder once stock levels fall below a stated threshold. By so doing, the stock management solution keeps the supply chain running smoothly as the manufacturer, supplier and other stakeholders in the vendor management system will all get automatic alerts when it is due to replenish the depleting stock.

Multi-location Inventory Management

They feature centralized systems that provide visibility and control over all inventory locations like warehouses, retail stores, or distribution centers no matter how far apart they may be. With this feature, the business manager can choose the most optimal facility to fulfil any particular order based on the closest location at the least cost.

Third-party Software Integration

Having API integration and data synchronization capabilities is an edge advanced warehouse control systems have their basic counterparts. With ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and WMS (Warehouse Management Systems) features integrated into one, there will be a smooth flow of data across the various departments of the business for seamless operation.

Automated item quality check

It is vital to ensure that the stock received as well as the products to be distributed have no blemish and conform to industry standards. Advanced stock management solutions can carry out this task accurately with the use of thermometers, scanners, weight scales and other computerized systems.

Demand Forecasting and Planning

By using a machine learning algorithm to analyze sales trends and compare them with seasons, an advanced stock control system can be able to predict future market trends and generate an accurate market forecast. This is crucial for reducing holding costs, stock waste and avoiding the problem of capital being tied down due to over-accumulated inventory in the warehouse.

Benefits of Implementing Advanced Inventory Management Systems

With advanced warehouse stock-keeping systems, businesses are better positioned to predict possible future market trends using available data. Here are more benefits of using it in the supply chain.

Improves Customer Satisfaction

Disruptions in the supply chain are the nightmare of any business manager. However, with an inventory management system, the supply chain will be streamlined from the sourcing of materials to production and the final distribution of finished products to customers.

Cost Optimization

Inventory management software helps to reduce unnecessary costs that would have been incurred from operational inefficiencies. Such costs include unnecessary carrying costs, expenses associated with stockouts, over-stocking and even personnel expenditures.

Supplier Relationship Management

Gone are the days when inventory simply meant what’s on the shelves. Today, through advanced stock management solutions, it has become easy for businesses to foster strong relationships, collaborations and good communication with everyone in their supply chain. Where this has been done well, it earns the business priority treatment from the supplier which can promote the goodwill of that business.

Potential for Growth

Advanced inventory management solutions as a technological innovation are the driving force behind most successful businesses. It gives the business managers real-time insight into and interpretation of data from various departments of the business. Armed with this information, a business will be rightfully positioned to forecast into the future and aspire for growth.