The times have changed, and so are the ways of doing business.
In the wake of the recent COVID-19 pandemic, companies, especially across the supply chain domains, companies have started shifting to the digitized mode of supply chain operations, making their supply chain, procurement, and other requirements digital, enabling the ease of doing business.
This was not the case earlier with businesses as they used to manage their operations manually, performing their tasks in traditional ways and carrying out their requirements in non-automated ways.
But now, the gears have shifted, and digital has occupied the driver’s seat, pushing companies towards automated ways of doing business, streamlining their business processes in digitally-driven ways, and ensuring a hassle-free business process across the sectors.
Earlier, the absence of digital caused productivity losses and incurred massive costs for businesses working in non-digital ways.
A pre-COVID-19 survey predicts a scenario where a research survey suggests that only two percent of surveyed executives agreed that supply chains were a focus area of their digitization efforts. Another study suggests that companies that aggressively digitize their supply chains managed to boost their earnings before taxes and interest by 3.2 percent, and that’s a massive turnaround that made organizations realize the benefits of digitization.
The earlier low rate of supply chain digitization had to do a lot with the capabilities made available by the technologies enabling organizations to focus on end-to-end planning, warehouse management, and fine-tuning analysis on which decisions were based.
The issues that persisted were the lack of traditional technologies, non-linking cross-functional data, uncovering the underlying issues, and delivering ERP, warehouse management, and other systems simultaneously.
However, realizing that the digital is the new normal has put organizations at the helm of utilizing digital tools and technologies, helping them build their businesses and achieve excellence. Inventory management is one of the critical business processes in supply chain domains.
The products, equipment, and other tangible assets form a whole inventory section.
Since it is an integral part of organizations’ inventory, inventory management becomes a crucial part of the business.
There are crucial elements to having sound inventory management, especially in businesses such as Retail and Distribution, which depend most on inventory management.
In an ideal world, all the items, goods, and equipment seamlessly shift through the hassle-free supply chain process, yielding a quick payback on their investment; however, in a real-time scenario, the supply is rarely equal to demand, leading to inventory expenses amounting to as much as 45 to 80% of an average business’s total budget.
The adoption of digital inventory management has led to the following benefits:
Businesses utilizing the digital mode of work can maintain a single central repository of inventory information by tracking the items by serial numbers, barcodes, and stock-keeping units, among others.
This enables businesses to find parts and products quickly, monitor locations seamlessly, and trace item transitions, viewing stockouts and overstocks.
With the rise in emerging and cutting-edge technologies, the inventory data is automatic gets analyzed, and suggestions get made on replenishment dates and quantities of the products and equipment, thereby helping businesses identify top-performing products with low profitability, thereby driving digitization.
To bridge the gap between the demand and supply scenarios, one of the most challenging aspects of the supply chain is to predict the future demands for production purposes.
Machine learning helps organizations to be effective and consider parameters that help businesses quantify the data to predict demand, allowing organizations to reduce the inventory and optimize inventory costs.
Machine learning looks at the historical transactions to predict the demand for a product already in the run, enabling the technology to forecast the market for new products, including factors that drive recent sales.
Fox ERP’s Inventory and Stock module help businesses streamline and manage their inventory within a few clicks.
It allows specific functions such as batch numbering by storing the stocks, maintaining serial numbers for the inventory based on the stocks, maintaining the price lists for the items in various currencies, and evaluating inventory valuation periodically.
Fox ERP’s “Do it yourself” mode of implementation makes it one of the most preferred ERP software.
Digital has become the new normal, and so are the ways of doing business.
With the rise in digital transformation, organizations, especially in domains such as supply chain, retail, and distribution, are realizing the significance of digital and quickly adapting to it.
Fox ERP’s Inventory and Stock module helps businesses streamline their business processes in digitally driven ways.
It’s a world of emerging technologies, and organizations across industries are adopting them quickly. Supply chain operations, too, hold a significant share among organizations and businesses utilizing such technologies for their operations.
The times have changed, organizations have transformed their ways of doing business, and companies are shifting to an all-new digitized way of doing business.
The industries are undergoing transition, businesses are transforming digitally, and companies are leveraging on the benefits of digital transformation, which not only leads to increased productivity and efficiency but also results in a paradigm shift that allows businesses to shift to all-new digitized ways of carting out business processes.