The biggest challenge with managing inventory today is still the same as it was over 50 years ago - Too little and you shut your sales and Too much and you waste all your capital in a moment
The organizations of customer's choice are the ones that provide the right goods at the right place and at the right time. This is the main prerequisite for an organization to be successful. The truth is that most businesses struggle to accomplish this feat. Not to mention the tedious manual labour and the time consuming process of tracking all the inventory there's a whole lot of things that may go wrong
What if you end up selling goods that are not in your stock?
What if the sold items get misplaced?
Or the inventory data stored in the spreadsheet which is highly vulnerable to errors and data loss happens?
But with the right inventory management software you are putting yourself in the best way possible that not only reduces your process time but can also cut the cost in many ways that you could imagine
Inventory management challenges
The client didn't realize that they spent a majority of time doing unstructured work. They carried out the delivery management manually with spreadsheets and it led to frequent data loss. Day to day tasks of a field agent like delivering the tank to refilling, payment collection is left unclear. This inefficiency created a huge communication gap between them and their customers. No planning frequently led to faulty execution.
Quick facts :
The top issue in 53% of warehouses is Human errors. About 11% of businesses don't even track their Inventory at all! (Hope you're not one). 33% of businesses track their inventories from pen and paper. Companies lose almost 18% of their net revenue due to improper managing of the Inventories.
You would have come across a popular quote " If it doesn't challenge you, then you don't change ". This exactly applies to the business than any other sectors.
Statistics show that more than 75% of the supply chain management professionals are not satisfied with their existing practices and want to improve with a much efficient technique. To understand their craving, we have to go through the challenges they face on a daily basis.
Can you tell how many purchase orders do you have and when will they arrive? How many of the stocks have warranties that are to be expired? Most probably the answer would be a No! Maintaining all these details manually is a cumbersome task. You cannot have a clear picture of all your stock.
Having a clear picture of your supply chain directly impacts the growth of your business. Most of the business struggles to satisfy their customers as they lose track of the goods in their inventory. This results in inconsistent tracking of goods in the warehouse.
Sadly, most of the managers follow the "Duct tape solution". This is the complete opposite of what an organization should aim for. Due to inefficient planning, the labours are forced to act temporarily based on the situation instead of looking for a permanent one
It is extremely difficult to manually create a strategic plan for all the laborers to carry out tasks such as receiving the inventory, picking, packing and shipping.
But there is a constant need to revisit the daily plan of each employee and find out the areas to improve the efficiency that many managers fail to realize.
Gone are the days when all the inventories were counted twice or even once a year on a rush. You need to know, at any given moment what are the inventory that are in stock, out of stock along with their warranty
Dead stock management
The major factor that drains your profit is obsolete stock. We can easily know the product has reached the end of its lifecycle when there is no market demand for the product. Customer demand is running rampant.
The key here is the sales reports. Inaccurate sales report results in piling up of dead stock that eats up lots of space and revenue. Sales teams need to generate a clear report that precisely describes the customer demand.
Inventory loss tracking
Losing inventory is an inevitable part of the supply chain. It may be due to various reasons like spoilage, theft or damage. Incorrectly keeping track of these losses deviates the management team from the right track.
Solutions to overcome these challenges
Nowadays companies have started to comprehend that the features a software can provide are undeniable. Inventory management software like Fieldproxy offer benefits that ranges from solely keeping track on stock records to strategic planning to effectively process the customer orders like
The software helps the managers to track all the details of the inventory from a single screen. The platform offers cloud based databases for precise and automatic inventory updates with real-time data backup. It secures the data loss and there is zero chance of error.
Crystal clear metrics
Managers can accurately measure the warehouse metrics like total inventory turnover, processing speed and efficiency of orders, and customer feedback to defeat all the inefficiencies associated with management. These data can be seamlessly shared.
Add product images
Humans are visual creatures. Images help us to understand the world better. Same rule applies here as the ability to add visual images to our inventory database improves the purchasing and receiving process. This enhances the accuracy and clearly enables to avoid misplaced inventory.
Stock preventive control
With the correct software, you will be able to control the system to manage problem inventory like dead stock, fragile products or perishable stock. In order to maintain the stock in prime condition, you can even set up periodic checks that automatically alerts you by sending reminders when the stock reaches below the threshold.
Thus the shelf life can be thoroughly monitored to prevent the stock from getting wasted.
Backordered inventory is a major reason for poor customer experience. The software can be used to set up automatic reorders based on the preset stock levels. The customer will have a detailed idea of the available date of stock and the waiting period.
Client : A leading supplier of automobile spare parts across the world
Industry : Automobile Logistics
Size : Has user base of above 15000
Challenges : Error prone Inventory management system with accuracy of 55%. Lack of visibility and knowledge on their spare inventory. Unable to collect the reports of their stock and out of stock details. Losing 18% of their entire revenue on inefficient management of spares.
Solution : Started to use Fieldproxy, an end to end automated Inventory Management and tracking software. Effortless set up of inventory workflow according to the company's demand. Managers are able to track and manage the ins and outs of their whole Supply chain with minimal human intervention.
Results : Accuracy enhanced to 138%. Automated analytics and reports reduced the manual report collection efforts by half. Obsolete stock are reduced to nill.
The Client :
The client supplies the spare goods to their widespread customers across the globe. They have a separate warehouse to handle all their spares and repair components. Their supply chain is one of the largest in their domain and serves for automobiles, electronics, and mechanical industries.
- Manual labour
- Difficulty keeping track of all their inventory
- Frequent data loss in spreadsheets
- Traditional support system
- No separate database for expired stock
- Piling up of dead stock
- Improper labour job planning
- Very expensive to maintain
- Pre build workflow for Inventory management / allows custom creation
- End to end process automation
- Managers can efficiently track the Inventory
- Catalog management of stock along with its image
- Keep track of all the products along with its complete history
- Scheduling jobs for the laborers on the go
- Geo tagging and tracking of goods
- Easy to configure and maintain
- Statistics and report maintenance
- Dashboard and custom Report maintenance
- Easy order booking and re-ordering of products
Fieldproxy approached the client to understand the struggles the client faces on a daily basis along with their custom requirements. Then provided a software that drastically reduces all the manual efforts and irons out their inventory management problems. Client doesn't have to use any other separate software for reporting, analysis or catalog maintenance purposes.
The solution provided by fieldproxy is robust and easily adaptable by the client which helps to manage all their inventory from a single platform. Accounts are maintained painlessly without having to move from one software to another. Fieldproxy has a default template collection, in which the client can choose the one that suits their company the best. Order bookings can be automated when the quantity of a stock falls below the preset threshold.
The best inventory software ensures you that the whole transition of moving the whole inventory management from manual maintenance to fieldproxy within a month. The key features that are utilized by the client are
Today, more than 4000 supply chain managers use Fieldproxy to manage inventories of all scales from raw materials, finished goods to MRO. Clients were able to automate their entire warehouse and has experienced
All in one solution :
The clients have adopted the system that allows for automated order management, warehouse laborers job scheduling, shipping management functionalities. It is an all-in-one solution that streamlines all the processes and enhances the productivity by 126%.
Improved staff efficiency :
Managers witnessed a drastic growth in managing their employees by pre planned scheduling of the work of the warehouse workers. The last minute hassle became a thing of the past.
Increased overall revenue :
Switching from the manual process to the automated software put an end to the losses occurred due to incorrect data entry, order misplacing and extra stock wastage etc., As a result the unavoidable overall revenue loss of 18% is controlled.
Increased volume handling :
Perfect planning and organizing of inventory enabled the client to increase the overall quantity of the inventory handled. They were able to save more space in their
Warehouse and plan accordingly.