The Future of Inventory Management: Trends and Predictions in E-retail
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Across almost all important metrics, e-commerce continues to represent the future of retail for a large number of organizations and groups of consumers. During only the last 8 years, e-commerce sales have risen from 7.4% - 19.5% of total retail sales worldwide, with some experts believing that e-commerce may account for almost 30% of all retail sales by 2030.
Of course, there are numerous unique factors influencing the continued popularity of online shopping, from data suggesting at least 85% of American adults now own a smartphone, to easier access to product reviews and price comparisons when shopping online. However, for business owners to benefit from e-retail, specific logistical considerations are often required.
In particular, inventory management in the world of online shopping can be a difficult task for unprepared retailers. Teams must pay close attention to global supply chains, fluctuations in the price of materials, and changing market demands, with these pursuits typically performed from a remote location. To learn how online businesses optimize key operations with support from smart technologies, let’s explore the future of inventory management trends in e-retail.
What are Inventory Management Systems?
Inventory management systems are smart software solutions designed to monitor goods and materials as they travel through an online business’ supply chain. Well-configured inventory management systems like Katana’s typically use smart data analytics tools to accurately predict inventory requirements, production needs, and market demands to maximize operational efficiencies.
Key processes such as material procurement, material allocation, production planning, and order fulfillment tasks are monitored in real-time, with any changes made to these processes automatically reflected in all related systems. In short, digital inventory management systems enable retailers to view operations holistically, with smart tools providing actionable insights.
Emerging Inventory Management Trends in E-retail
The unmatched visibility and predictive analytics capabilities afforded to online retailers by smart inventory management solutions have contributed to the widespread adoption of such technologies. At present, it’s believed at least 72% of retailers have plans to transform core supply chain operations with support from real-time analytics, sensors, and automated tools.
Alongside the basic benefits associated with smart inventory management tools, continued developments in the fields of AI and machine learning have led to several interesting emerging trends. Below are a few examples of novel e-retail inventory management trends.
Predictive Order Picking
AI tools integrated into wider logistics management systems are increasingly being used to improve efficiency concerning order picking. AI analytics tools continually monitor user behaviors, providing managers with actionable insights into which products are often bought together, enabling staff to stock said products closely to improve picking efficiency.
Internet of Things (IoT) Tracking
IoT sensors can be installed to track key aspects of inventory management and production line processes, providing retailers with live updates regarding materials and stock in transit. This data can be used to perform accurate stock counts, monitor order fulfillment processes, and streamline maintenance tasks, potentially leading to a 15% reduction in inventory costs.
Automated Supply Chain Management
To mitigate the impact of instability in global supply chains, many e-retailers are exploring ways to automate material and inventory procurement processes, supported by live data analytics tools. AI-informed forecasting allows teams to accurately predict seasonal demand based on live and historical data, enabling teams to adjust orders in direct response.
AI-informed production planning
In a similar sense to automated supply chain management systems, AI analytics tools can be used to adjust production schedules in response to real-time data. E-retailers can share live inventory data with manufacturers and vendors to ensure all operations are informed by live market demands with essential production activities increased or decreased accordingly.
Cloud-based Management Solutions
To improve visibility across all aspects of inventory management, e-retailers are increasingly turning towards cloud-based management solutions. By storing live data in easily accessible cloud-based systems, as well as hosting all related inventory management and production planning solutions within the same platform, teams can access essential systems remotely. In addition, real-time alerts can be programmed to ensure adjustments are made promptly.
Summary
As the e-commerce market continues to grow worldwide, online retailers must find new ways to maximize productivity and improve operational efficiency to stay ahead of the competition. With support from AI technologies and cloud-based solutions, e-retailers of all sizes can streamline inventory management processes and optimize key operations. As these tools become more widespread, the benefits will likely be felt by businesses and consumers alike.
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : e-retail
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First Published: Oct 18 2024 | 11:15 PM IST
