Technology has disrupted operations across major industries, and retail is no exception. It has become a valuable asset in retail as it can facilitate efficiency in business operations, improve production processes to lower unnecessary expenditures, and enhance service/ product quality.
However, as inventory management is one of the most important aspects of a retail business, regularly assessing and enhancing inventory procedures is crucial for a smooth-running business. After all, tech has transformed every aspect of the customer journey; it’s the need of the hour for retail businesses to invest and keep up with tech.
Plus, with the rise of e-commerce platforms and the popularity of online shopping, using technological solutions for inventory management has become more important than ever before to improve the effectiveness and efficiency of business operations. So, if you don’t maintain proper inventory levels, in case of a supply chain disruption, your entire business can come to a full stop.
Today we have put together a list of six technological trends that can completely revolutionize inventory management for your business. Keep scrolling to learn more.
Software-based barcode scanning
Not long ago, businesses used to rely on manual labor for inventory tracking, which was as arduous as it sounds. But today, barcode scanners have become the industry standard as they eliminate the need for manual labor in inventory management.
With Barcodes, you can identify and track inventory levels, whether you run a physical store or an online business. They can enhance the shopping experience by making it more efficient and engaging for the customer. Furthermore, barcodes have been shown to increase productivity as they optimize inventory tracking and allow for quicker stock audits.
However, like all things, not all barcode scanning solutions are created equal. Just like barcode scanners from Code Corp, which are inherently superior to anything else you may find on the market. Software-based barcode scanners offer unparalleled performance and scalability, premium customer support, and high-speed data capture at high accuracy, even for damaged labels, which sets them miles apart from their competitors.
Cloud technology
Cloud computing facilitates more effective stock management. A distributed inventory management system that is seamlessly connected has become a reality through the cloud.
With third-party providers taking care of the servers, businesses have one less thing to worry about regarding tech assets such as servers and updates. Businesses can leverage the cloud to centralize and synchronize inventory levels and purchases across distribution channels, warehouses, and retail outlets.
The use of the cloud in tracking and managing inventory levels has been progressively growing over the last several years as the technology has continued to undergo steady development. The rise of telecommuting and other flexible work arrangements has sped up the adoption of cloud tech.
The rise of telecommuting and other flexible work arrangements has sped up the adoption of cloud tech. One of the simplest ways to keep all of a company’s stores and employees on the same page about inventory levels is via an app designed specifically for inventory management. When it comes to inventory systems, the best application is more than just cloud-compatible; it more or less functions on the cloud.
Data Analytics
Data analytics makes it possible to improve warehouse picking rates as business collects and analyzes a large amount of customer purchase data. With rigorous statistical analytics, you can identify customer buying patterns and see which products are often bought together. You can also use analytics to classify customers into different categories, indicating the product type the customer is more likely to purchase.
These insights from the data can help you optimize inventory management by storing products that are more likely to be purchased together near each other, reducing the time customers spend wandering aisles. When shopping online, these insights can enhance delivery timelines and increase picking efficiency. The Internet of Things, Machine Learning, and Artificial Intelligence are necessary for effective data analytics.
Warehouse Automation
Warehouse automation is an extension of artificial intelligence and machine learning which helps lower labor costs in inventory management.
Automating labor-intensive tasks reduces the need for manual labor, saving businesses tons of money on employee wages. Among the numerous factors driving the rise of warehouse automation, the number one factor is its cost-effectiveness. After all, the maintenance of a robot will cost significantly less than what you may be paying a human employee.
Furthermore, there are now more affordable automation options because of the advances in artificial intelligence, machine learning, and robotics. And with the rising wages, there’s a huge potential for savings.
Safety stock inventories
After the C-19 pandemic, it is now considered a standard practice among businesses to have a supply of safety stock. The pandemic increased the awareness of the value of stocking up on safety/buffer items due to supply chain disruptions and shifting customer demand.
“Safety stock” refers to stock held in excess on purpose. It can help companies withstand fluctuations in supply and demand, giving them room to keep selling as they ramp up production to meet unexpected demand. With this safeguard, businesses can continue to sell items and fulfill orders even if equipment fails or supply networks get disrupted.
Multi-warehousing for distributed inventory management
The term “distributed inventory management” refers to a system in which many distribution centers are used throughout a large geographical area. Distributed warehousing streamlines logistics, as stockpiling items means they may be sent out sooner. It also simplifies scalability, expansion, and crisis management.
Since its beginning, Amazon has always relied on its network of warehouses to meet customer demand for speedy shipment while keeping prices low. More companies are adopting this practice since they realize they must compete in the marketplace.
As the price of cloud-based inventory management decreases and its functionalities increase, it will become a more practical management choice. After all, the cloud is vital for multi-warehousing.
Bottom Line
Whether you run a small company or a large enterprise, technology has become essential for business growth and development. Meeting consumer expectations and providing a satisfying shopping experience is critical to the success of any retail business. And with smart inventory management, businesses can achieve exactly that.
Consider adopting the above-discussed six technological trends to speed up business growth while cutting unnecessary costs and eliminating bottlenecks and inefficiencies in inventory management.
