AI & Automated inventory tracking
Inventory has always been an area of contention within retail. However sophisticated the systems are, there is still areas of improvement within the hundreds of process embedded within the inventory tracking space. Can AI help or add to the confusion? In this blog, I would be discussing How AI can improve Inventory Tracking.
Automated inventory tracking is the process of using technology to automatically monitor and manage inventory levels in a business. This can involve the use of specialized software or hardware devices, such as barcode scanners or radio-frequency identification (RFID) tags, to track items as they are received, moved, and sold.
By automating inventory tracking, businesses can improve accuracy and efficiency in managing their inventory levels. This can help prevent overstocking or stock shortages, reduce the time and resources required for manual inventory management, and provide real-time visibility into inventory levels, enabling businesses to make informed decisions about ordering and replenishment.
Automated inventory tracking can also be integrated with other business processes, such as point-of-sale systems, order fulfillment, and supply chain management, to create a more streamlined and efficient operation.
How can Retailers Leverage it?
There are tons of ways through which Retailers can leverage automated AI. Some of the several ways include:
Improved accuracy: By automating inventory tracking, retailers can improve the accuracy of their inventory counts and reduce the risk of stockouts or overstocking.
Real-time visibility: Automated inventory tracking provides real-time visibility into inventory levels, enabling retailers to make informed decisions about ordering and replenishment.
Reduced labor costs: Automating inventory tracking can reduce the labor costs associated with manual inventory management, freeing up staff time to focus on other tasks.
Enhanced customer service: Accurate inventory tracking enables retailers to provide better customer service by ensuring that products are always in stock and readily available.
Better supply chain management: Automated inventory tracking can be integrated with supply chain management systems, providing retailers with greater control and visibility over their entire supply chain.
Increased efficiency: Automating inventory tracking can increase efficiency by reducing the time and resources required for manual inventory management, enabling retailers to operate more efficiently and cost-effectively.
Reduced stockouts and overstocking: Automated inventory tracking can help prevent stockouts by providing real-time visibility into inventory levels and enabling retailers to quickly reorder products when they are running low. This can also help prevent overstocking by enabling retailers to accurately forecast demand and optimize inventory levels.
Improved efficiency: Automated inventory tracking can help reduce the time and resources required for manual inventory management, enabling retailers to operate more efficiently and cost-effectively.
Improved accuracy: Automated inventory tracking can help reduce errors and improve the accuracy of inventory counts, providing retailers with more reliable data for making informed business decisions.
Cost savings: Automated inventory tracking can help reduce labor costs associated with manual inventory management, as well as costs associated with stockouts and overstocking.
Enhanced supply chain management: Automated inventory tracking can be integrated with supply chain management systems, providing retailers with greater control and visibility over their entire supply chain.
Overall, automated inventory tracking can provide retailers with significant benefits in terms of cost savings, efficiency, accuracy, and customer service, enabling them to gain a competitive advantage in the marketplace.
Many retailers have implemented automated inventory tracking systems to improve their inventory management operations.
Some examples of retailers that have implemented these systems include:
Walmart: Walmart uses an automated inventory tracking system that involves using RFID tags and readers to track inventory levels in real-time. This system enables Walmart to optimize inventory levels, reduce stockouts, and improve efficiency in its supply chain operations.
Amazon: Amazon uses a combination of barcode scanners and AI-powered demand forecasting tools to manage its inventory levels. This enables Amazon to optimize inventory levels and reduce the costs associated with overstocking and stockouts.
Nike: Nike uses an automated inventory tracking system that involves using RFID tags and readers to track inventory levels in real-time. This system enables Nike to improve efficiency in its supply chain operations and reduce the costs associated with overstocking and stockouts.
Target: Target uses an automated inventory tracking system that involves using RFID tags and readers to track inventory levels in real-time. This system enables Target to optimize inventory levels and reduce the costs associated with overstocking and stockouts.
Overall, automated inventory tracking is a common practice among retailers of all sizes and industries, as it provides significant benefits in terms of cost savings, efficiency, accuracy, and customer service.
In the next blog, I would be diving into a little more detail to discuss some use cases you might want to consider if you are looking for implementing Automated Inventory and some more examples from the industry which will help you focus on the right direction when you start this journey.
