In the Indian manufacturing industry, systematic operations play an important role to maintain and grow your business. Proper inventory control plays an important role in maintaining the supply chain. An inventory tracking software helps you get this control. But, making working inventory management strategies can be difficult.
In this blog post, we will learn how stock tracking technology can boost your supply chain and the methods of use.
What Is Supply Chain Efficiency?
The supply chain in manufacturing is the entire process of making and delivering a product, from getting raw materials to sending the finished product to customers. It includes managing suppliers, making the product, checking its quality, and ensuring it gets to the buyer. A well-performing supply chain is one that matches the lead time and maintains the inventory level.
An inventory management system tracks all ongoing processes and provides complete visibility of what stage the product is in. An effective supply chain will also help you improve the customer relationship. It also increases profitability by giving you a competitive advantage.
What Is Inventory Tracking Software?
Inventory tracking software is a system that allows you to automate your tracking of inventory in real time. A good inventory management software contains various parameters. They help the software collect, manage, and track the data in the inventory. This includes raw material as well as the final goods.
With inventory tracking software, you can easily track multiple warehouses and determine the quality and quantity of the items in the supply chain. Inventory tracking solutions help to identify the stock shortage or stock overflow and improve your supply chain. It gives you better visibility over the manufacturing business. This gives you insights and data, which you can use to make more informed decisions.
How Important Is Inventory Tracking In Supply Chain Industry?
Inventory tracking and supply chain management work hand-in-hand. An inventory tracking software keeps track of all the items you have in your inventory, be it raw material or final goods. It can allow you to have accurate data about the stocks in the warehouses. With this data, you can optimize your inventory accuracy levels, maintain the stock movement, and improve your order fulfilment.
Implementing inventory tracking software can help you collaborate with your suppliers. Complete inventory visibility can help you find inventory trends and forecast needs. You can easily create an order as per your requirement when you see any part of the inventory decreasing. This lets you plan your inventory, which can improve the whole supply chain process. With the right inventory monitoring software, you can stay competitive in the supply chain industry and deliver value to your customers.
Top Inventory Management Strategies To Boost Supply Chain Efficiency
To choose the right Inventory Management Strategy for your business, you need to follow the following steps:
1. Identify Your Needs
For businesses, it is important to analyze the previous data to forecast future inventory needs for order fulfilment. You can do so by keeping an eye on inventory demand and the cost of procurement resources. This will help you reduce the risk of stock out or stock overflow. It will also allow you to plan and allocate your resources effectively.
2. Automate Inventory
Implement the inventory tracking software in your business to automate your order management and warehouse management system. Automating your tracking process will allow you to reduce errors and save time in your supply chain management. You will get all the data in real time and help in better decision-making.
3. Track Performance
You can use inventory management software to measure your business's key performance metrics. The right Inventory management solutions will let you monitor your order fulfilment rates, and measure your lead time rates, and inventory turnover ratio. You can use these stats to identify areas for improvement and make changes to improve your supply chain process.
4. Supplier Collaboration
For an effective supply chain process, it is important to have an effective collaboration with suppliers. You should automate inventory management to stay connected with your supply chain partners. You can also share billing and invoices for the required goods. Make sure to have complete visibility to reduce the lead time and improve inventory accuracy.
5. Emergency Inventory
It is important to maintain enough goods in your warehouse for instant order fulfilment. Failing to fulfil their order may result in customer dissatisfaction. You can be safe with your inventory management to prevent stock out or buffer stock. This will help you avoid the unexpected ups and downs in demand.
6. Mobile Technology
Consider automating your warehouse management with mobile technologies like a barcode scanning system, RFID (radio frequency identification, and IoT (Internet of Things) devices. Such technologies in your inventory tracking software help to reduce menial errors and automate data storage.
7. Batch Tracking
Implementing the batch tracking model in your supply chain management can improve Inventory accuracy and visibility. You can use the first-in-first-out inventory system or FIFO method to avoid product expiration or shelf life. You can also consider the last-in-first-out warehousing technique or LIFO method according to the demand value for your supply chain management.
8. Analytics And Forecasting
Performance Analytics is an important factor in addressing issues like surplus inventory or stockouts. The right inventory tracking software provides real-time reporting of your supply chain process and customer behaviour. These insights will help you understand the market demand and monitor and optimize your supply chain efficiency.
How TranZact Inventory Management Software Can Improve Your Supply Chain Efficiency
A poor inventory management system can affect your order fulfilment and production process. Inefficient supply chain management can result in stockouts or stock overflow. TranZact inventory tracking software can give you accurate data on the supply chain process. It provides full visibility of stock levels. This helps you prevent stockouts and stock overflow. You can be sure of efficient supply chain management.
It also has batch tracking to let you keep track of all items, saleable goods, and even expiry dates. With TranZact, you can easily your inventory even if you have multiple warehouses automate your inventory management process. Sign up with TranZact today to improve your production efficiency.
FAQs
1. What is inventory efficiency in the supply chain?
Inventory efficiency in the supply chain is the process of optimizing activities and functions to meet business needs and customer demand.
2. How to measure the efficiency of inventory management in supply chain management?
The efficiency of inventory management in supply chain management can be calculated through the supply chain efficient matrix that is discussed below.
- order index
- service rate
- turnover ratio
- order accuracy
3. Why is inventory management important in SCM?
The inventory management system is important in SCM because it helps to balance the demand and supply parameters.
4. What are the 4 steps in inventory management?
The 4 steps in inventory management are:
- Receiving and inspecting the product
- Storing the product in the warehouse
- Accepting and fulfilling customer orders
- Recording the new stock
5. What are the 3 most important inventory control techniques?
The three most important inventory control techniques are Just-In-Time (JIT) to minimize stock levels, Economic Order Quantity (EOQ) to optimize order size and reduce costs, and ABC Analysis to prioritize inventory based on value and importance.
6. What is an efficient way to track inventory?
An efficient way to track inventory is through an effective inventory management system. It helps you manage the stock, forecast demands, and generate reports.
7. What are the two common measures for supply chain efficiency?
The two common measures for supply chain efficiency are inventory turnover and WOS (Weeks of Supplies). WOS is a KPI (KPI) that allows manufacturers to check the health of their inventory and forecast ROS (Rate Of Sales).
8. What software is used in supply chain management?
The software used in supply chain management are Inventory management software, Order processing software, and Warehouse management software.
