Inventory Sensing, Monitoring & Management | IoT Technologies

IoT-enabled inventory management technologies are a crucial piece of a business’s profitability, but a lot of small businesses don’t practice good management when it comes to the items they sell. Some businesses have too little inventory, unable to meet customers’ expectations by supplying enough available products. This often drives customers away, sometimes to another business, and sometimes for good.

On the other hand, many businesses go the other way, overstocking items “just in case.” Though you’ll always have the items your customers are looking for, the risk with this strategy is bleeding money from your business. Excess inventory not only ties up valuable cash flow, but it also costs more to store and track.

Effective inventory management lies somewhere between these two extremes. While it requires more work and planning to achieve an efficient management process, your profits will reflect your effort.

Inventory Sensing, Monitoring & Management – Q&A

What does an inventory management system do?

What is an inventory management system? An inventory management system is a tool that allows you to track goods across your business’s supply chain. It optimizes the entire spectrum spanning from order placement with your vendor to order delivery to your customer, mapping the complete journey of a product.

What is efficient inventory management?

An efficient inventory management system means spending less on storage, having less stock redundancy, reducing the amount of money invested in stock, and improving customer service. Taking a firm grip on your inventory management strategy will increase efficiency, which in turn leads to increased sales.

What are the 4 types of inventory?

The four types of inventory most commonly used are Raw Materials, Work-In-Progress (WIP), Finished Goods, and Maintenance, Repair, and Overhaul (MRO). When you know the type of inventory you have, you can make better financial decisions for your supply chain.

Who uses inventory management system?

Companies often use inventory management software to reduce their carrying costs. The software is used to track products and parts as they are transported from a vendor to a warehouse, between warehouses, and finally to a retail location or directly to a customer.

Why do we need inventory management system?

An effective management of inventory helps in reducing costs which further keeps accounts and finances in check. From a customer’s point of view, it helps you to provide better customer services through fast delivery and low shipping charges, hence, meeting customer expectations.

What is the 80/20 Inventory rule?

The 80/20 rule, also known as the Pareto principle, simply means that roughly 80 percent of the effects of anything you might be doing come from 20 percent of the causes. For example, 80 percent of your sales are likely generated by about 20 percent of the items you carry or services you offer.

What is the basic purpose of inventory analysis?

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine the level of quality to specify. The basic purpose of inventory analysis in manufacturing and stockkeeping services is to specify (1) when items should be ordered and (2) how large the order should be.

Pain points surrounding inventory management and controls:

Goals & clarity

Functionality

Data, reporting, accuracy

Tracking

Solutions provided by our inventory management technologies:

Understanding inventory paired with your sales cycle

Understanding customer behaviors

Understanding logistics, shipping and receiving

Applications

Retail

Warehousing

Distribution

Customer tracking / behavior reporting