Since globalization, organizations are facing challenges in managing the inventory. With the supply chain becoming complex these days, inventory management has become the need of the hour. Companies often experience challenges in gaining valuable insights from the data that help them to forecast demand and inventory planning.
Data Analytics powered by cutting edge technologies like machine learning and artificial intelligence can improve the accuracy of inventory orders. It also increases the work efficiency and productivity by eliminating manual processes. The lack of planning and organizing the inventory can upset the customers and may hamper productivity.
There are several factors like weather, holidays, economy etc that can change the demand and supply pattern. Before data analytics, enterprises often used traditional inventory management methods like – excel spreadsheet to figure out the customer demands and supply chain.
However, as the needs and expectations often fluctuate, it became difficult for retailers to maintain the accuracy of data and make business decisions.
In most of the enterprise scenario, inventory planning and management through data analytics can help companies improve their operations and make more intelligent business decisions.
Big data analytics is widely used in processing a large volume of data. However, the high volume of data without proper infrastructure can create more problems. Here is how big data is changing inventory planning and management –
With Big Data Analytics, enterprises will have better access to the metrics and have an overview of real-time data. This helps in removing the bottlenecks and enhances the performance proactively compared to traditional methods of inventory planning.
Having access to real-time data will help the enterprise to understand customer preferences and predict seasonal trends. The spikes in the customer requirements can be measured accurately to ensure that the inventory is maintained all the times.
The biggest advantage of data analytics is to understand the customer purchasing trends, best/worst products inline, best/worst performing sales channels etc. Enable successful sales across multiple channels and markets by getting visibility into the inventory.
Big Data Analytics can transform inventory management capabilities, improve operational efficiency, reduce costs, maximize sales and reduce inventory shrinking. The application of data analytics for inventory planning has a positive impact on profitability.
The key to data analytics in inventory planning is to have the right product quantity at the right time and right place.
If you are looking for a specific solution for inventory management, it is recommended to check the existing systems and process of implementation.
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