{"id":3388,"date":"2020-08-20T19:30:11","date_gmt":"2020-08-20T19:30:11","guid":{"rendered":"http:\/\/www.rtgsolutionsgroup.com\/?p=3388"},"modified":"2020-08-20T19:36:16","modified_gmt":"2020-08-20T19:36:16","slug":"how-4-data-driven-tools-can-improve-your-inventory-management","status":"publish","type":"post","link":"https:\/\/www.rtgsolutionsgroup.com\/how-4-data-driven-tools-can-improve-your-inventory-management\/","title":{"rendered":"How 4 Data-Driven Tools Can Improve Your Inventory Management"},"content":{"rendered":"
[vc_row][vc_column width=”3\/4″][vc_single_image image=”3394″ img_size=”1110×500″][vc_column_text]In just a few years, big data completely revolutionized the business world. Where it was once considered a useful tool, it has now become the backbone of entire industries. Some even argue that <\/span>data is the new currency<\/span><\/a>.\u00a0<\/span><\/p>\n

The data movement is sweeping through every sector of the traditional economy. Business leaders should stay ahead of the innovation curve to reap the benefits of the analytics-driven economy.<\/span><\/p>\n

One of the most promising applications for data in the corporate world is inventory management.<\/span><\/p>\n

And no, we\u2019re not just talking about demand forecasts. Forecasts are fantastic supply chain tools, but the future holds something even better. What we\u2019re talking about is real-time inventory management.\u00a0<\/span><\/p>\n

In this article, we cover cutting-edge data strategies that can help businesses implement real-time inventory management. These analytics-focused tools and techniques will boost efficiency throughout your supply chain:\u00a0<\/span><\/p>\n

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    1. Enterprise Resource Planning<\/span><\/strong><\/li>\n
    2. Internet of Things<\/span><\/strong><\/li>\n
    3. Radio-frequency Identification tags<\/span><\/strong><\/li>\n
    4. Prescriptive analytics\u00a0<\/span><\/strong><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      But before we get into that, let\u2019s answer some important questions. <\/span>[\/vc_column_text][vc_custom_heading text=”WHAT IS INVENTORY MANAGEMENT?” font_container=”tag:h3|text_align:left” use_theme_fonts=”yes”][vc_single_image image=”3393″ img_size=”1110×500″][vc_column_text]Inventory management<\/span><\/a> is a crucial sub-set of supply chain operations. It refers to how a company stores, orders, organizes, re-stocks, transports, and tracks inventory.<\/span><\/p>\n

      Traditionally, these tasks were carried out in brick-and-mortar warehouses by personnel with clipboards. Nowadays, there are a wealth of tech and data tools at our disposal that have re-imagined this process.\u00a0<\/span><\/p>\n

      With the proper strategies, businesses can use inventory management to thrive in our rapidly changing material economy.\u00a0<\/span><\/p>\n

      We talk more about the importance of inventory management to overall company health in our article, <\/span>How Better Inventory Management Leads to Increase in Profitability<\/span><\/a>.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=”What is real-time inventory management?” font_container=”tag:h3|text_align:left” use_theme_fonts=”yes”][vc_column_text]As the name suggests, real-time inventory management involves making supply chain decisions based on real-time data. By supply chain decisions, we mean things such as purchases, manufacturing, distribution, raw materials expenditures, etc.\u00a0<\/span><\/p>\n

      The \u201creal-time\u201d technique stands in contrast to its predecessor data-application approaches, which primarily involved using past data to predict future needs. This is what we call forecasting.\u00a0<\/span><\/p>\n

      While forecasts are great, real-time inventory management is unbeaten in its waste-reduction and profit-maximization potential. After all, the only thing that can predict future behavior better than past behavior is present behavior!\u00a0<\/span><\/p>\n

      This is especially true in today\u2019s tumultuous business climate, where unpredictable <\/span>supply chain disruptions <\/span><\/a>cause billions in losses.<\/span>[\/vc_column_text][vc_custom_heading text=”How can businesses implement real-time inventory management?” font_container=”tag:h3|text_align:left” use_theme_fonts=”yes”][vc_column_text]If you are a small business owner, you might think real-time inventory management is unnecessary or, perhaps, out of your league.<\/span><\/p>\n

      But no matter the size, every business can benefit from modernizing its supply chain operations. And thanks to recent technological advances, it\u2019s easier than ever to do so.\u00a0<\/span><\/p>\n

      Below, we discuss some of our favorite data-driven tools for real-time inventory management: enterprise resource planning, Internet of Things, radio-frequency identification tags, and prescriptive analytics. <\/span>[\/vc_column_text][vc_custom_heading text=”1. Enterprise Resource Planning” font_container=”tag:h3|text_align:left” use_theme_fonts=”yes”][vc_single_image image=”3391″ img_size=”1110×500″][vc_column_text]Enterprise Resource Planning (ERP) is a type of corporate software that centralizes and automates many business processes. ERPs were first created to streamline inventory management. However, they\u2019ve evolved to support a range of administrative functions.\u00a0<\/span><\/p>\n

      Modern ERPs provide a platform to manage the following operations:\u00a0<\/span><\/p>\n