Inventory management is the foundation of an efficient supply chain. Cloud computing is the evolution of that foundation. Like going from stone to steel, cloud computing adds sophistication and durability to existing management infrastructure. An increasing number of modern businesses prefer cloud-based inventory management over in-person models due to its insights and cost savings.
Yet due to the growing market size of cloud inventory management systems, many businesses struggle to choose the right modality for their workflow. Since over half of businesses want to improve their inventory planning and demand forecasting, consider these ways in which cloud computing can manage inventory and shipping more efficiently than manual methods when choosing the software that fits your needs.
Real-time visibility
Real-time visibility is the hallmark of cloud inventory management. Cloud technology can automate supply chains by centralizing the data sources to one system. Instead of accounting for products by hand, routing them into a POS, and recording inventory counts on paper, cloud computing allows businesses to scan items in and out, update the system automatically, and accurately assess inventory levels at all times using cycle counting and other methods.
An inventory system that perpetually updates allows managers to make informed decisions about their product supply schedules and assets even when managing multiple warehouses. The distance between teams or storage facilities no longer makes a difference in the information they have available to strategically replenish inventory in response to shifts in demand or supply.
Cloud inventory systems also offer remote access to the inventory counts at all times, so long as your managers have a phone or laptop with access to the system.
Scalability difference
Scalability is a necessary but labor-intensive goal for supply chain-based businesses. Cloud inventory management software with SaaS capabilities can adapt to your business’s changing needs as it scales up its logistics and storage facilities.
For instance, as your storage needs increase, the number of licenses you need will also increase. Cloud inventory systems can manage multiple licenses more flexibly, simply by asking the program to match the model to the current expectations for demand and production load.
Analytics integration
Real-time visibility can only benefit your bottom line so much without analytics backing up your responses to shortages and overstocks. The analytics built into advanced cloud inventory management systems analyze key supply and demand factors to make demand planning easier and decisions more productive.
Significant aspects that can be collected and analyzed by analytics software include seasonal demand changes, supply chain disruptions, external factors, global market shifts, consumer demand preferences, supplier behavior, and more.
Businesses equipped with analytics compiled on accessible dashboards can strategize their workflows more effectively due to an increased ability to predict adequate inventory levels before, during, and after market shifts.
Error reduction
Human error remains a costly aspect of supply chain management. Manual inventory counts, particularly without a centralized barcoding system, cannot always be reliably used to strategize inventory replenishment.
When and how the inventory is taken can also cause disruptions in your decision-making due to false accounting. For example, using manual inventory methods, you may take the count right after a buying surge, falsely accounting for your demand forecast during the next period. Cloud-based systems account for inventory every time it changes, resulting in fewer errors.
Security improvements
Cloud-based data servers will keep your inventory and sales information safe, in addition to removing the need for costly record storage. These servers offer businesses 24/7 support for their clients so you don’t have to stress about data losses or cyberattacks.
The takeaway for businesses
Cloud inventory management systems are quickly becoming the norm for businesses that want to integrate competitive demand forecasts with real-time inventory visibility, with servers that are more secure and cost-effective than paper records. Businesses need systems with accessible analytics and real-time planning, making it more vital than ever to shop for features that integrate with your existing workflow rather than contradict it.