These procedures can use physical eyes-on counting or electronic counting methods, and one or more of at least a dozen sub-methods that focus on specific aspects of your business.
When the audit is completed, a comprehensive, easy-to-read audit report will be produced which can be used in future decisionmaking. This all will help companies improve their businesses.
Common Strategies
One of the most beneficial additions to the management system has been automated inventory. This system uses software to collect data regarding current inventory usage and transforming it into actionable intelligence that enables a business to respond quickly to market changes and to scale.
Using Radio Frequency Identification tags and Internet of Things sensors, items can be tracked and recorded, as well as made viewable by all the necessary personnel using
Wi-Fi networking.
A significant upgrade to automated inventory is the predictive inventory system. In addition to collecting current sales data, this system uses historical data as well, enabling businesses to analyze multiple possibilities that can come up in the future.
Supply chains have been notoriously unpredictable, leading to unplanned delays and extended lead times. Predictive analytics have mitigated much of that risk by helping to plan for contingencies. For example, adverse weather conditions or geopolitical events could affect the ability to have products reach you— and thereby your customers— in a timely manner.
Predictive analytics enable a business to foresee these issues and make appropriate adjustments ahead of time.
The Balancing Act Likely the most common inventory problem that businesses face is concerns over having too much or too little stock. Only half-jokingly,
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