With the advancements in information technology, inventory management systems have progressed to become more sophisticated. The current state of technology offers solutions for problems that would have been difficult or impossible to solve pre-internet.
It has opened up new possibilities and allowed companies to expand their inventory management capabilities. However this also presents new challenges as businesses are required to adapt to the dynamic nature of their stock. It has become more important than ever before to be able to inventory management system decisions in real-time, as opposed to the once a day routine that was commonplace for most businesses.
If you have been struggling with inventory management for a while, here are 5 prevalent challenges and how they can be overcome:
- Inventory Inaccuracy
The main challenge in real-time inventory management is making sure that the numbers match up with what’s actually on hand. If there are inconsistencies, there are two possibilities: either the inventory tracker is faulty or user error is to blame.
To resolve this problem, try looking into different inventory management solutions. Not all systems are created equal—some have modules that can help ensure accuracy of information by using different methods such as picking, cycle counting and random sampling.
- Inventory Mismanagement
Another obstacle in real-time inventory management is when products get misplaced or other items are put in their place. When it comes to the latter, this could lead to an even bigger problem: running out of materials while they’re not where they should be.
To combat this issue, try setting up a written inventory management policy with clear guidelines as to how to handle inventory.
- Inventory Shrinkage
With real-time inventory management, you can’t track your supplies and materials 24/7—there’s simply no way of doing that. That means that there will be times when items go missing without any trace at all.
To resolve this dilemma, make sure that there are clear policies in place for all employees to follow when it comes to shrink. With the help of inventory management system software, you can also set up alerts and notifications so that managers will be notified immediately once an inventory count is below a certain threshold.
- Stockouts
The last thing you want is to run out of a necessary product or material during the busiest time of the day. To address this challenge, you need to make sure that there is always a steady supply of materials going in and going out.
To do this, it’s important to set up a schedule for purchasing supplies and inventory management , as well as create contingency plans should worse come to worst. By having clearly defined strategies, you are better positioned to have more control over inventory management.
- Inventory Complexity
Lastly, one of the biggest challenges that come with real-time inventory management is dealing with an overload of information. Whether it’s because there are too many different software platforms being used or too many different departments involved, it can be extremely difficult to manage.
To solve this issue, business owners and leaders should look into buying an inventory management software that has built-in capabilities for real-time insights across all areas of a business. The right software will allow employees from each department to work together in order to make smarter decisions. This way, every player will be on the same page and know what’s at stake.
Takeaway
With real-time inventory management, you save time and money while operating more efficiently. However, if you can’t solve these challenges and keep them at bay, it could affect your company’s growth and performance. By having a clear understanding of these obstacles, leaders can then work towards finding a solution.
