Benefits of Automation in Inventory Management

When was the last time you jumped out of excitement at the prospect of working with your inventory?

Yeah…

We can relate 

If procurement has a reputation for being tedious, inventory management is known for being too much to handle at times. 

You need to play your cards well to understand that beautiful, kind of unreachable point between having too much stock and too little.

And the more your business grows and your demand levels go high?

The more complicated it becomes.

Fortunately, we live in an advanced world, and there are things or strategies that can help you to work less and still gain amazing results.

Like…

Automation 

With digital tools by your side, you can track your products in real time, cut down on mistakes, and free up many hours of your day.

But how exactly? 

That's what we're going to figure out.

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What's Automated Inventory Management?

Depending on your industry or business size, you could find your inventory filled with raw materials, ready-to-sell products, and even food. 

And while all these details matter, keeping a close eye on everything can quickly become a nightmare.

Especially if it's a busy season.

Automated inventory management solves that with a series of processes and technology.

You can see it as a digital system capable of doing the heavy work for you. 

Are you tired of manually counting items and waiting hours or perhaps days trying to find a specific product in your warehouse?

Well, working with an automated system means all of that is handled in minutes, with zero mistakes.

Some examples of automation in an inventory management setting include: barcode scanners, RFID tags, smart software, and even sensors that can tell you when a shelf is running low.

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Why is Automation So Important?

Better yet: Do you need to automate your inventory management operations?

Yes 

And here's a solid reason why:

Saves you time 

We don't need to tell you this, but running a business or an important department like purchasing it's busy work.

Without a proper system, your team is obligated to spend too much time counting stock or fixing messy spreadsheets. 

Automation does all the boring, repetitive tasks without a blink of an eye. 

And you can bet it's precise.

Fewer mistakes 

And speaking about precision, making a mistake is part of our human nature, but when it comes to overseeing your business’s inventory, what it looks like a simple error can cost you money.

A digital system is built for keeping things updated and accurate.

Real-time tracking 

When your supply chain barely makes sense and you've rows of orders waiting to be fulfilled, knowing what's happening is fundamental.

If you have a digital platform by your side, you always know what you have, what’s running low, and what needs to be restocked.

Happier customers 

Don't you love it when your purchases arrive just on time? 

When your stock is accurate and your fulfillment is fast, your customers notice in a good way.

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How do You Implement an Automated Inventory System?

Okay, so automating your inventory makes sense, but it's something complicated to achieve?

Should small businesses stay away from it?

Not really, but as with any other project, there are some general steps you can follow to simplify the process.

Assess your current situation.

There's no other way to know what's working or not. 

Take a serious look at your current situation regarding your inventory and warehouse management.  Ask yourself questions like:

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• Where are our main bottlenecks?
• Do we have a problem with orders? 
• Are we purchasing too much or too little?
• Do we have sufficient visibility?

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This might take some time but it's important that you don't overlook it. If you don't fully understand your processes, there's no automation that can solve your problems.

Determine which tool works for you

This is something that we'll be seeing in s moment, but for now, focus on setting a list of criteria for the system you're looking for. 

As automation becomes more popular, it's normal to see the market full of inventory management tools so it's going to be up to you and your team to discover which one does the work. 

Consider your business’s size and industry case there are certain specific requirements.

Do you need something that integrates with your online store? Or a system with barcode scanning and warehouse support?

Go deep with your questions so you can feel confident you are making the right choice.

Ask for demos from your potential vendors and see how it works for your operations. 

Rely on integrations

Your new inventory system should connect with other key tools like your point-of-sale system, accounting software, and e-commerce platform. 

The more connected your systems are, the simpler is to obtain the best information at the right time.

Work alongside your team

Technology is great, but if your warehouse staff don't feel comfortable using it, you won't reap the benefits. 

Before going full scale with a digital solution, take baby steps in small projects. This gives your people the chance to get used to the new system and be open to discussing any doubts or changes with patience.

Monitor and adapt 

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Watch how the system performs, gather feedback, and make adjustments as needed. 

Most systems can be customized or tweaked as you go, so you don’t have to get everything perfect on day one.

The Technology behind Automation in Inventory Management 

Inventory management software 

The platform where all great things happen.

With an inventory manager system you can check your stock levels, set up relevant alerts, create reports, and connect with your other departments. 

IoT devices 

Have you ever dreamt about seeing your toys getting along with each other, as a kid?

Well, the Internet of Things is the version for grown-ups.

Smart devices are designed with sensors that can send information to other objects as long as there's an internet connection. They also automatically feed data back into your system in real time.

AI and machine learning 

AI can analyze your past sales, seasonal trends, and even external data like weather or market changes to help forecast demand. 

The final outcome?

You no longer need to deal with issues surrounding your stock.

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Blockchain 

Do you also want to improve your supply chain?

Start thinking about blockchain.

Blockchain creates a secure, transparent record of every transaction across the supply chain.

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