Inventory Optimization

How to Optimize Inventory During the Digital Age

10 Jun 2020 Kion Kashefi

More and more companies are relying on digital platforms to help make their business more successful. Companies no longer write down and record everything by paper, and instead almost all of our record and data is stored on computers. Computers have allowed us to store data, easily find what we are looking for, make quick calculations, and perform a vast number of business decisions. The digital age has caused many changes to how business is done, however, it comes with many benefits.

Digital platforms have helped companies keep better records of their inventory. Having an accurate inventory is essential for all businesses who want to increase their productivity and profitability. If your company is looking to improve its inventory optimization you should highly consider these tips. Here are some of the best ways to improve your inventory records and ordering.

#1) Use Artificial Intelligence Technology

To incorporate the best inventory management strategies to your business you should highly consider using a digital platform that focuses on artificial intelligence technology. Artificial intelligence technology has the ability to maintain a ninety nine percent accuracy of inventory records at a much faster capability than other methods. This solution to old and outdated methods has significantly increased the ability to maximize accuracy and profitability for companies that are already implementing these new methods.

#2) Predict Customer and Facility Needs

One of the best ways to increase your profit margins and to reduce overstocking of inventory you should highly consider using technology to help predict the needs of your customers and your facility. Many times, companies have too many items in their inventory. This reduces the amount of money they have to spend on other things. When too many supplies sit on inventory shelves companies lose out on time and money. To help improve inventory optimization companies need to use digital platforms and other technology to help predict the needs of the customers and facilities.

#3) Move Away From Traditional Spreadsheets

Recent statistics have shown that nearly seventy five percent of companies are using traditional spreadsheets to track and record their inventory. This method of data keeping is unrealistic in the digital age. Using traditional spreadsheets requires constant monitoring and often results in human error. When workers are responsible for updating inventory spreadsheets there is often a large amount of error that takes place. If you are looking to truly optimize your inventory you need to use smarter methods of data tracking. Using artificial intelligence technology can help your business find more success and make fewer errors.

#4) Use E-commerce Promotions

One of the best ways to help optimize your inventory is to understand what you have in stock. If you realize that you have too much of one item you may need to find ways to reduce it so that you can stock up on the more essential and popular items. To help you move the less popular items faster you can use e-commerce promotions. If you are able to sell things online for a reduced price you can help your business stay profitable. Sales and promotions is a great way to move items and to help your business optimize their inventory. It gives companies the ability to start fresh if they are unsure of what they have or how to move the items that they do have sitting on shelves and taking up space.

#5) Focus on Service-Drive Optimization

One of the best ways to optimize your inventory is to take a service-driven approach. Using a service-driven approach during the digital ages allows you to understand how customers show and how they decide what to buy and what not to buy. They use SKU-location technology to optimize inventory during every aspect of the business. This helps reduce your stock investment and keep your business profitable and successful.

Inventory optimization is a crucial part of business that can significantly help increase the productivity and profitability of any business. If your business is going to be successful during the digital age it is crucial that your business starts using digital platforms and artificial intelligence technology to help monitor and track their inventory. Keeping accurate records and predicting the trends of customers is one of the best ways to help increase your profitability. If your business is able to foresee the future and understand how inventory affects your return on investment you can truly help make your business more successful. During uncertain and predictable times it is important for all companies to use their inventory to their advantage

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