As technology advances, inventory management strategies advance with it. Here are three ways inventory management has changed over the years.
1. Advanced Sales Forecasting
Sure, analytics existed ten years ago, but they were nothing like the tech we have today. You can now track every aspect of your sales campaigns and forecast demand with the latest predictive analytics. You no longer have to make complicated calculations based on last year’s sales figures. Today, the newest software does all the hard work for you to manage other aspects of your business without breaking a sweat.
Manufacturing execution systems like Prodsmart optimize inventory management with the latest metrics and key performance indicators (KPIs). You can track the metrics that provide your manufacturing business with the most value, such as anticipated demand, and then make decisions based on this data. With rea;-time data tracking, you can analyze shop floor operations such as materials, machines, wasted time, labor, costs, and more with a click of a button or swipe of a finger.
2. Warehouse Optimization
Warehouse optimization tools have made it easier to find the products and materials you need and track them as they progress through your workflows. This is one of the most significant inventory management changes in the last ten years. Just a decade ago, many programs weren’t capable of providing such advanced analytics.
The problem is, not all inventory management systems are accurate all of the time. Research suggests that inventories are precise only 63 percent of the time. Using a proper manufacturing execution system can eliminate errors and provide you with more value.
3. More Manufacturers and Retailers
There are far more manufacturers and retailers in the United States than there were ten years ago, meaning competition is fierce. You need to optimize your inventories properly to improve customer relations. As a result of this, more manufacturers are investing in inventory management solutions to outrank their rivals.
How is your inventory tracking going? Advance with the times and get the upper hand with Prodsmart today.