Finding it Hard to Manage Your Inventory with Outdated Systems?
Businesses that rely on manual processes, such as paper-based systems or spreadsheets, face challenges in managing inventory every day. When products get misplaced in the warehouse, it results in lost time and revenue.
A study by the Aberdeen Group found that companies using manual processes for inventory management have a 3% higher likelihood of stock-outs and excess inventory, compared to those using automated systems. This inefficiency leads to an estimated 8% loss in revenue annually due to missed sales opportunities and reduced customer satisfaction (Aberdeen Group, 2021).
How to Effectively Manage Your Inventory
The solution to improving your inventory control system is straightforward: Implement an integrated order management and warehouse management system (OMS and WMS).
This type of inventory management system can transform how you track and manage inventory, from point of sale to dispatch.
According to research from Capgemini, businesses that implement integrated order and warehouse management systems see on average a 20% increase in inventory accuracy and a 15% improvement in order fulfilment rates. This integration leads to a reduction in order processing times by up to 25% (Capgemini, 2022).
Operating in real-time, a unified order and warehouse management system ensures complete visibility and control over your stock levels. With this single system approach, integration issues with other inventory or sales order management systems are eliminated, reducing errors and enhancing customer satisfaction. You’ll never lose track of goods in your warehouse again!
Key Features of an Effective Inventory Tracking System
With features such as accurate BIN location management, goods can be organised to maximise space and minimise retrieval time. Real-time data ensures you always have visibility over your stock. Even when selling across multiple channels, all your inventory is updated instantly and accurately onto one platform. A full audit trail allows for constant and accurate monitoring of goods.
A report by MHI and Deloitte highlights that companies utilising real-time data capabilities in their inventory systems report a 35% improvement in order fulfilment accuracy, significantly minimizing the costs associated with returns and misplacements (MHI Annual Industry Report, 2023).
Barcode scanning is an extremely effective and efficient method for helping warehouse staff operate with very low error rates, improving the speed and accountability of daily tasks.
Barcode scanning and real-time inventory tracking reduce stock discrepancies by up to 75%, compared to traditional manual methods. (Source: Annual Retail Operations Insights, 2024)
A comprehensive inventory management system also efficiently manages composite items, tracking both the composite items and their individual components. The system automatically updates inventory levels as components are purchased, sold, or returned, ensuring accurate tracking and replenishment.
Research from Gartner indicates that systems capable of tracking composite items can reduce associated overhead costs by up to 30% through improved tracking and replenishment cycles, which is critical for industries like manufacturing and retail (Gartner, 2022).
Automate Your Inventory Management System
Companies looking to automate their order and warehouse management should consider the advantages of an integrated system. It’s all about maintaining a lean inventory and never losing sight of your stock. This will greatly contribute to the smooth operation of your business by simplifying your order and inventory processes and ultimately enhancing your bottom line.
IBM’s findings suggest that companies that automate their inventory and order management systems can expect to see a 25% decrease in inventory holding costs, a 30% increase in sales due to better stock availability, and a 50% reduction in time spent on inventory management tasks (IBM, 2021).
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Author: Iain Coplans CEO Stok.ly