Fleet Management & Forklift Safety Blog

The Need for Real-Time Data in Inventory Tracking & Management

Posted by Brian Quigley, Director of Client Services on Dec 13, 2018 4:30:00 AM

Businesses that resist investing in data-driven capabilities will struggle to secure and nurture growth. Dependence on traditional tools and educated guesswork regarding supply and demand keeps you unequipped for the inventory and supply chain management challenges of today’s fast-paced supply chain industry. analytics-3680198_640

The last few years of telematic software development has addressed these challenges by providing real-time data that managers need most — delivering easy, actionable information (the who, what, where, and why) on one screen. It quickly estimates customer demand based on historical data, completing predictive calculations based on facts rather than guesswork.

Benefiting from real-time data.

Simply put, a business using telematic software gains actual answers and solutions regarding all the moving parts of the organization. Using the right software platform takes warehouse efficiency and productivity to a whole new level.

In the age of e-commerce, everyone is competing for customers. Carrying slow-moving inventory or shipping damaged/incorrect product hurts customer relationships. Across the warehousing industry, seasonal fluctuations impact inventory needs. It’s vital to know the pace of product movement and demand to avoid excess inventory or shortages.

Inventory is one of your largest assets, so carrying too much or not being fully in control can take a toll on your productivity and, ultimately, your ability to compete. Although the cost of carrying inventory varies greatly depending on the business, the standard rule of thumb places it at 25 percent.

Telematic software improves inventory management, allowing businesses to:

  • Gain optimum control over inventory. Purge slow-moving inventory to create more efficient storage. With a real-time knowledge of current inventory and demands, action can be taken sooner to reevaluate stock and upcoming needs.
  • Achieve 100 percent inventory accuracy. Spend less time retrieving inventory, which means shorter cycle times. Perfect inventory accuracy also leads to a reduction in damaged goods and an improved shipment record.
  • Maximize productivity with the help of real-time slotting (interleaving). The optimization of storage results in quicker jobs and, consequently, opportunities to reduce labor or right-size your fleet.
  • Accomplish more with less. By taking advantage of the cost reductions that result from your use of advanced inventory tracking, you can increase productivity even as you reduce your overhead.

A recent survey of 1,300 IT and warehouse operation professionals found that investing in the latest technology is part of most business forecasts for the coming year.

By the year 2020:

  • 75% of managers expect to implement an upgraded, complete warehouse management system (WMS).
  • 73% of managers expect that advanced visibility, barcode scanning and/or computing technologies will be accessible across their enterprise.
  • 76% of managers plan to invest capital in expanding real-time location systems, which will facilitate advanced tracking capabilities for inventory and assets throughout the warehouse.

The takeaway.

If your enterprise avoids investing in telematic technology upgrades, your business will be working at a disadvantage, struggling to meet increased expectations for speed and accuracy, and failing to accommodate fluctuating inventory demands.


Topics: predictive analytics, omni-channel fulfillment, inventory management, locationing, process improvement, location capabilities, inventory tracking, distribution center, loss avoidance

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