How Technology Has Improved Inventory Management | WSI (2024)

Managing inventory requires knowing where every product is in the supply change process. Technology has advanced to bring more clarity and accountability in this operation to boost competitiveness.

Inventory management technology involves tracking the flow of products in and out of your warehouse. It allows you to know what stock is on shelves, the number of available products, and the sales process of orders as the products are picked and packed for shipments. A warehouse can ensure that products do not get lost or damaged during the supply chain by having efficient inventory management processes.

This process also helps to update inventory records in data network systems. Sales representatives can view data to instantly know the amount of inventory available to customers and at what price. It also allows the right amount of inventory to be ordered to replenish stock without ordering too much or too little.

Warehouse operations continue to change to satisfy how customers shop and order products. As a result, inventory management processes are also changing. Today, new technologies are streamlining the process to make it more accurate while reducing repetitive tasks.

TECHNOLOGY’S ROLE IN INVENTORY MANAGEMENT

Technology plays a vital role in how versatile inventory management processes are for a company. It offers a competitive advantage to every business model, including e-commerce companies where customers may not speak to an actual sales representative throughout the order process. The technology offers several key features, which may include:

  • Real-time data management:Data is updated in real-time throughout every computing system connected to the network. This process provides greater clarity on actual inventory levels and customer sales order history.
  • Centralization record-keeping:All systems become centralized while still allowing employees to work from any location. Inventory management technology allows for greater information-sharing between departments that can boost communication and collaboration.
  • Scalability:This technology allows companies to scale their operations so they always remain competitive. Many systems allow you to select the features that will work for your current needs and add more options as the business grows.
  • Reporting and analysis:Inventory technology management provides reporting and analysis features. These features help gather the right data at the appropriate time, analyze the data based on specific parameters, and generate meaningful reports to benefit the company.

The type of inventory technology management features that are available will depend on the vendor. Some vendors may offer the basics, while others will allow for integrations into other systems. In addition, some technology may be tailored for a specific industry or business model, such as e-commerce or food sales.

EVOLUTION OF INVENTORY MANAGEMENT

The technology used today has changed quite drastically from when it was first implemented in supply chains. Manual counting was the norm during the Industrial Revolution, as this slow process caused inaccuracies and hindered business growth.

Let’s check out how technology has evolved from this method to systems that are used today:

  • Punch cards:As a step up from manual counting tasks, punch cards offered more efficiency to companies after the Industrial Revolution. Holes would be punched into the card to match cataloged inventory. Then the cards would be fed through a card reader connected to a computer to update records. This process is seldom used today.
  • Barcodes:Barcodes were created around the 1940s. A UV light-sensitive ink was placed on products as they came into the warehouse that held important data. This data included the type of product, price, location, origin, and other information. The barcode would be scanned by a reader as the data was manually inputted into network systems. Barcode technology is still used today as the technology continues to evolve.
  • RFID microchips:Radio frequency identification (RFID) is a type of technology that is used today in addition to barcodes. A tiny microchip is placed on the products. A barcode reader scans the microchip as the data is automatically uploaded to network databases.

BENEFITS OF INVENTORY TECHNOLOGY MANAGEMENT SYSTEMS

An inventory management system’s main benefits are using advanced technology to promote more visibility and accuracy in the supply chain. The technology allows you to know where every product is in the warehouse.

The tech also allows for better order fulfillment and procurement. Sale representatives know what inventory is available at all times to fill orders and can make adjustments when products start to run low. In addition, many inventory management systems automate the procurement process when product levels reach certain thresholds so shipments can arrive on time without any order delays.

Lastly, inventory management helps to provide cost-savings and increase operational efficiency by automating redundant processes. Fewer inventory counting errors may be committed that will cause problems and drive up costs.

WSI’S INVENTORY MANAGEMENT SOLUTIONS

Technology is ever-evolving. You want to have the right tech and tools available to improve warehouse accuracy and to track products in your supply chain. At WSI, we want to ensure that your products reach their destinations on time and at the right budget.

We employinventory management solutionsto your supply chains to better manage the movement of inventory, procure products, and provide comprehensive logistical strategies. Learn more about our solutions bycontacting WSI today.

How Technology Has Improved Inventory Management | WSI (2024)

FAQs

How technology has improved inventory management? ›

With real-time data and automated processes, businesses can make faster, more informed decisions and optimize their inventory levels for maximum efficiency. IoT can also help to reduce costs associated with inventory management by minimizing excess inventory and improving supply chain efficiency.

What are the advantages of technology on inventory tracking? ›

Real-time Inventory Tracking

Businesses can monitor their stock levels accurately and know precisely when to reorder. This feature helps prevent stockouts, overstocking, and inventory obsolescence, leading to improved inventory turnover and cost savings.

How technology has improved warehousing? ›

Automation and Robotics

Automation involves the use of robots and conveyor systems to perform tasks like picking, packing, and sorting goods. These technologies enhance speed, accuracy, and efficiency in warehouse operations while reducing labor costs.

What are the benefits of improved inventory management? ›

Benefits of inventory management
  • Lower costs and saves money.
  • Prevent overspending on warehouse storage.
  • Minimize storage needs.
  • Reduce losses to improve cash flow.
  • Forecast sales trends.
  • Satisfies customers with timely deliveries.
Feb 15, 2024

How can technology improve inventory control and accuracy? ›

Barcode and RFID systems can help in accurately tracking inventory by assigning unique identifiers to each product. Scanning barcodes or RFID tags during receiving, storage, and shipping processes ensures real-time visibility of inventory levels and reduces manual data entry errors.

What are the 5 benefits of inventory management? ›

What are the advantages of inventory management?
  • Improves Accuracy. ...
  • Reduces costs. ...
  • Saves Time. ...
  • Improves Business Planning. ...
  • Improves Customer Service. ...
  • Inventory Tracking. ...
  • Barcode Scanning. ...
  • Integrations.
Apr 1, 2024

What is information technology's impact on inventory? ›

The impact of emerging technologies on inventory management can be summarized in the following ways: Improved accuracy: Emerging technologies such as IoT, AI, and ML can provide real-time data on inventory levels, which can help businesses improve inventory accuracy and reduce the risk of stockouts or overstocking.

What are the benefits of using a computerized inventory management system? ›

Benefits of automated inventory management
  • Real-time visibility. The ability to view and track your inventory levels in real-time gives you greater visibility of exactly what is available and where it is currently located. ...
  • Increased efficiency. ...
  • Fewer errors. ...
  • Reduced costs. ...
  • Protects revenue. ...
  • Aids forecasting. ...
  • Supports scaling.
Feb 23, 2023

How can technology integration contribute to improving warehouse productivity? ›

Technology can help you improve your loading and unloading processes by using tools such as automated guided vehicles (AGVs), robotic arms, or conveyor belts. These tools can help you reduce manual handling, increase productivity and safety, and save space and energy.

How technology has improved logistics? ›

One of the most notable benefits of technology in the logistics industry is improved efficiency. With advanced technologies like GPS, automation, and the IoT, companies like yours can now track the movement of your goods in real time.

How does technology improve logistics? ›

Artificial intelligence and machine learning in logistics

One of the key benefits is improved efficiency. Technology enables businesses to automate manual processes, reduce errors, and optimize operations, resulting in faster and more streamlined supply chain processes.

What is the main purpose of inventory management? ›

What Is the Main Purpose of Inventory Management? The primary purpose of inventory management is to ensure there is enough goods or materials to meet demand without creating overstock, or excess inventory.

What is importance of inventory management? ›

The two main benefits of inventory management are that it ensures you're able to fulfill incoming or open orders and raises profits. Inventory management also: Saves Money: Understanding stock trends means you see how much of and where you have something in stock so you're better able to use the stock you have.

What is the three benefits of inventory control? ›

Why is Inventory Control Important? Inventory control is an essential part of inventory management to help you properly track your purchase orders, monitor your supply chain, and ensure your production keeps running and important items are not out-of-stock.

How technology has changed supply chain management? ›

Real-Time Visibility: Supply chain managers may receive real-time visibility into the movement and status of items, thanks to cutting-edge monitoring technologies like RFID and IoT. This enables better planning, decision-making, and reaction to any disruptions.

How can machine learning help in inventory management? ›

Machine learning (ML) significantly enhances inventory management by improving demand forecasting accuracy, enabling real-time decision-making, and allowing businesses to quickly adapt to market changes.

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