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The benefits of real-time inventory optimization are countless. This article is written to inform you what real-time inventory optimization is, and the benefits it offers. Real-time inventory optimization is an automated process of recording sales and purchases through the use of software. Real-time inventory optimization has a lot of benefits. Here are a few of them.
With real-time inventory, you sell more products. Your sales volume will increase exponentially, such that you might have to expand the frontiers of your brand and products abroad. Inventory optimization based on data-driven forecasting helps in the effective management of stocks as your business grows. Real-time inventory optimization helps you handle all aspects of business logistics including goods handling in and out of the warehouse without incurring too many costs.
What is data-driven inventory optimization?
Dead stock is a challenge to your supply chain. As an entrepreneur, you wouldn’t want a pile of dead stock in your company as it wastes time, increases cost, and results in high lost sales that reduce your profitability and sustainability.
Using fulfillment alone cannot solve the problem of dead stock and the associated costs. This will influence your cash flow negatively. Inventory optimization with real-time data is the solution. It ensures that you know how your flow of products works. You know what products are coming in, where they are stored, and when they are going out. This allows you to handle your cash flow more efficiently and prioritize the most important inventory to your organization.
Why real-time inventory optimization?
Your company is bound to incur high inventory costs without effective optimization. The costs are a drain on your cash flow and can cause you to put wrong priorities on the purchase of products. In the same vein, there is the probability that you will not be able to meet your customer's demand. For example, you can have a lot of inventory of products that are not in demand and a few inventories of products currently in high demand. The resultant effect of this would be higher lost sales, resulting in dissatisfied customers and poor service. In short, your service level threatens to go down.
Balanced purchasing using real-time data guarantees you have sufficient stock of the right products at the right time. Real-time data ensures you have the right inventory by including old sales, trend forecasts, and seasonal influences in the purchasing process. The inventory in the system is updated accurately. This also offers advantages when you manage inventory from multiple storage locations. Your inventory is better analyzed and monitored for each storage location. In this way, you have a better view of products that sell well and those that do not sell well per outlet.
What are the benefits of real-time inventory optimization in fulfillment?
Real-time data ensures that you make purchasing decisions based on information that works. This helps you take the expected customer demand into account. Below you will find the important benefits of using real-time inventory optimization.
1. You make sure that your inventory is in balance
If you have outlets in multiple countries, you want to manage your inventory as smartly as possible. Real-time inventory management provides you accurate insight about your inventory that has been stored and which new goods are coming in. You are more able to determine what you lack, so that you can make better purchasing decisions for this.
2. More time savings and less administration
By using software that enables real-time inventory management, you collect all the necessary information in one place. This means you no longer have to work with different data sheets. This saves time in checking inventory administration in various places.
3. More overview
Real-time inventory optimization ensures that the flow of your products is transparent. You know what you have in stock, which orders are running and which products you are receiving. Once you know what you order, you can easily switch with your suppliers and indicate what you need to purchase in terms of goods.
4. More satisfied customers
No sales and low service levels are the last thing you want to achieve. By working with accurate inventory at different warehouses, you ensure that you are not left with too little, but also not with too many products. Real-time inventory optimization ensures you always have good insight into your data to remain flexible with your customers.
Merge purchasing and fulfillment with Optiply
Delivering an order from point A to B can be a difficult task and a burden to your growth, especially when the frontier of your company is spread abroad. Prevent lost sales due to a lack of products by using stock optimization software like Optiply. Give your customers the good experience they deserve when buying your products. You will create a good overview of your inventory for optimal purchasing when you integrate Optiply into your webshop.
Connect Optiply together with byrd to arrange your inventory in different fulfillment centers anytime, anywhere. byrd ensures that products are delivered to the customer neatly and accurately. Make your business scalable with the right software and save time and unnecessary costs. Create an optimal shopping experience designed to meet customer’s demands for fulfilling the ideal delivery promise.
