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The Significance of Inventory Management in Retail

The rise of new and improved advancements in the field of technology is changing the way businesses initially operated. Disruptive technologies such as Artificial Intelligence, Machine Learning and Data Analytics are enhancing store infrastructure and building competencies to grow and develop in the highly dynamic and competitive market. Data analytics assists businesses to gather, store and process large amounts of data to generate optimal strategies for organizational success. Moreover, they also help retailers to gain a better understanding of customer preferences and manage store inventory. As a result, over the next few years, more than 40 percent of the firms are expected to incorporate Data Analytics to their store infrastructure.

According to market research, over 35 percent of businesses experienced lost sales opportunities due to issues with optimal inventory management. As a result, the demand for high-value inventory solutions continues to grow. Developments in the field of RFID (Radio-frequency identification) has significantly impacted inventory management. RFID allows retailers to collect, store and seamlessly transfer data to maintain real-time and convenient asset tracking. According to industry experts, RFID will inventory accuracy by over 25 percent. Furthermore, RFID tags are robust and can be read outside the line of sight, thus making it simpler to track assets in-store.

Impact of Data-driven technologies

Advancements in the field of data analytics boost sales as retailers can offer products as and when shoppers require. In addition, it also simplifies the complex process of supply chain management. Growth in Artificial Intelligence and analytics assist retailers to monitor various online and offline platforms to stock up on products as per customer demands and preferences. Moreover, they also enable firms to gain insights on emerging market trends and shopping patterns. Technological advancements help firms to reduce dependence on labour and thus avoiding human error.

Security Concerns

Despite the convenience, accuracy and low cost of inventory management solutions, over 55 percent of business leaders are skeptical about the impact of online threats against optimal data security and privacy. However, in the year 2020, the industry will witness a significant rise in cybersecurity strategies to protect and tackle such challenges. Furthermore, the time and monetary resources required to train employees to effectively and efficiently utilize Analytics is high. However, developments in the field of Virtual and Augmented reality will significantly reduce the effort needed to incorporate Analytics. Statistically, over 65 percent of employees are more prone to gaining insights and improving their skills by using this advancement.

Leveraging the power of data analytics will boost customer satisfaction by more than 25 percent. Moreover, it will also assist in optimizing the logistics department to improve day to day business operations. Retailers who fail to incorporate analytics will struggle against industry competition due to factors such as inaccurate customer data and operational challenges.

 

Written By: Ranjeewa Dias

Business Technology Manager

2020-01-08T08:39:00+00:00

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