Supply Chain Inventory Optimization – Beyond the Analytics
It is easy to make analytics the cornerstone of warehouse and distribution center management. While analytics offer remarkable insights into inventory optimization, warehouse managers must still understand how the use of slotting optimization technology impacts other processes. With 7 percent of America’s gross domestic product (GDP) tied up in inventory, reports the 21st Century Supply Chain Blog, your organization must go beyond the analytics and understand the broad impact of analytics in your company.
Siloed Data Must Be United for True Inventory Optimization
Siloed data and disparate systems skew analytics results. Your systems need unification and must use data as a whole. Consider upgrading your existing warehouse management system (WMS) or implementing cloud-based systems.
Better Inventory Management Needs Complete Control
Reaching a point of better inventory control demands complete control over all systems. Warehouse and distribution center managers should understand how their actions impact all systems and activities. Furthermore, department heads should be able to collaborate to promote streamlined workflows, which has other implications for schedule and labor management.
Inventory Optimization Creates a Competitive Advantage
Since optimized Inventory allows warehouse managers to connect all operations, it builds competitive advantage. Through necessary investments to upgrade systems, your enterprise lowers per-unit costs, reduces packaging and transportation costs and meets consumers’ demands. Furthermore, the use of newer technology increases visibility, boosting vendor-retailer and consumer-business relationships. Warehouse managers must also understand how analytics impact other operations beyond the use of key performance indicators (KPIs).
Analytics Integrate Inventory Management Into All Supply Chain Processes
Analytics Integrate inventory management processes into all supply chain systems and processes. Supply chain managers can quickly review operations and act on data. However, the day-to-day decisions of warehouse management may need split-second action, so warehouse managers using KPIs may still make impulsive decisions. Therefore, any decision made should always include a review of KPIs as soon as possible to ensure the right decision was enacted.
Optimized Inventory Builds Credibility
Unethical retailers and companies litter the internet, and consumers are constantly looking at a company’s ability to meet their expectations, including reading earlier reviews. Better order accuracy through optimized inventory builds credibility by ensuring consumers get what they want and expect. While exceptions may occur, warehouse managers must ensure all operations and processes run as smooth as possible, including automated notification systems to alert consumers of delays or issues.
Cloud-Based Systems Are Ideal for Novice Users, Reducing Costs While Improving Inventory Optimization
Simplicity in system implementation and use is critical to widescale adoption and cost reductions in your warehouse, explains Oniqua.com. To improve visibility and control of inventory, you must take these considerations and use the power of innovative, cloud-based systems for inventory optimization.