Data analytics is more than a tool that enables retailers to connect with their customers on a day-to-day basis. The platform permits organizations to gather and assemble priceless consumer data to succeed in the long run. Whether you own a physical business or operate an online store, it is vital for an organization to oversee incoming and outgoing of your products. As a result, retailers have a clear perspective on how to improve sales – as inventory drives revenue, profitability and customer satisfaction. Yet retailers are losing an estimating 50 billion a year by not properly managing one of the greatest assets.
Since the boom of e-commerce, customers are unknowingly giving out personal information to retailers. And thus, allowing them to optimize their sales and modify their business model successfully. Computerize tracking systems have emerged as a key component of business strategies, increasing productivity and maintaining competitiveness.
Analytics and RFID Solutions
Regarding Inventory Management, data accumulated can simplify the process and generate more sales by offering products on the shelf at the right time. In recent years, retailers are looking for possible oversight through data analytics and RFID solutions. Moreover, this allows the retailer to take quick action and understand, simplify the supply chain and logistic.
Today the demand for inventory solutions continues to increase, and with the progression of technologies, retailers must introduce more sophisticated solutions. In other words, this influences the cost of the product and increase profitability. Customer data gathered from various digital touch points notifies the logistics department to gear up their stock. And thus, target demand and improve work efficiency and take actionable money-saving possibilities.
There are various benefits of inventory management software’s, which help reinforce sales and profits. For instance, accessing real-time data to keep track of inventory stocks in all the geographical locations, tracking and optimizing employees. Also, allowing an increase in return on investment, prevent overstocking and outages, identifies and adjust prices according to market supply. Inventory analytics helps retailer and brands to get a heads-up as it predicts emerging trends and behaviour patterns to optimize customer purchase journey, providing retailers with valuable knowledge through tracking customer’s previous purchase.
With the data-driven through sales, the retailer will be able to shape their product offering to meet consumer’s expectations. A decade ago retail employees used to count stocks manually which was time-consuming as well as a costly procedure. Inventory management facilitates cost-cutting, timely updates on the stocks and reduce human error. Today exploiting all the resources available is the key to survive; retailers must integrate inventory management systems with other department’s which will enable the retailer to maximize profit. Companies can no longer ignore such systems, as their growing prevalence rises to the forefront of the retail world. From executing business operations to simply streamlining your processes, inventory management software can help you on a number of levels.
Inventory precision is affected by the flow of inventory in and out of the stores, websites, and warehouses. For a clear picture of your inventory availability, these important channels must be consolidated across the organization to increase profitability. Automation and real-time data improves accuracy and reduces manual errors. Tracking the process such as purchasing, selling and delivering automatically enables retailers to have an update on quantities, statuses and location. In addition, retailers can gain insights on revenue as soon as the activity takes place.
Inventory Management Systems
Proper inventory control involves meeting customer demands to maximize the organization’s revenue. Inventory management system helps retailers to analyses products, vendors, and categories to purchase strategically. Also, it allows in analysing the average cost for negotiation with vendors and priced properly to preserve more margins.
Nevertheless, inventories return is a critical matrix which needs to be traced to avoid excessive inventory by using auto replenishment capability. The software solutions trigger alerts when stocks fall below a certain level, allowing the purchasing team to optimize supplies and meet demands.
Fortunately, retailer analytics in inventory management has empowered retailer with the automated receiving system in place which requires very little interaction from personnel, allowing them to focus on other things. Leveraging this power has enabled retailers with real-time inventory visibility and availability, so customers can buy, pick up and return however they prefer and allows the retailers to get the product out of the supply chain and into the hands of the customers by meeting operational challenges and building customer satisfaction.
Written By: Ranjeewa Dias
Business Technology Manager