The advent of new technology is always a challenge, but it can also provide you with great opportunities if you can learn how to take advantage of it. Supply chain professionals are faced with a variety of new technologies, and if they learn how to use these technologies properly, there are many benefits to be had.
Without up-to-date inventory visibility, retailers need to have extra stock in their stores to deal with both brick-and-mortar and online sales. This leads to increased inventories which can put a strain on finances as well as the supply chain. By more accurately predicting future sales or offtake, supply chain professionals and warehouse managers can reduce inventories by 20-25%.
If you are running a FMCG (fast-moving consumer goods) warehouse, it’s essential that you can react quickly to buying trends and do so with smaller inventories. In addition, an Omni channel economy means you have smaller and more frequent orders coming from a variety of buyers. New technology can offer you more detailed analysis of sales and can make all the difference.
There are many reasons for changes in your sales trends: peak seasonal demand, holidays, and weather patterns can all influence consumer buying habits. For example, barbecue sales are up at a different time in the Northern hemisphere than in the South. Using technology to review your sales data can give you insight into your historical sales and allow you to determine your optimized inventory level.
Technology can also help you with your logistical planning. With complete visibility of inventory at all times, warehouse managers can see what’s coming in or going out and plan deliveries and orders accordingly.
RFID (radio frequency identification) can already record customers’ preferences directly from the shopping cart. The coming IoT (Internet of things) will drive this data analysis even faster as the number of internet-connected devices increases dramatically.
Are you ready to take advantage of this new technology for your logistics and supply chain operation? Do you know “what good looks like” (WGL2) in your world? I can help you harness your business’ potential. Contact me Now