Keeping track of goods is one of the most challenging aspects of running a business that carries inventory. If you have been relying on spreadsheets or another outdated system to manage your inventory records, you have no doubt been finding the process challenging. Deciding to use AI in inventory management means the records will always be up to date, along with several other advantages.
AI Gives You Cutting Edge Inventory Management
Artificial Intelligence is nothing new, particularly in warehouses and inventory management. The most modern inventory management systems will take AI innovations to the next level, allowing businesses to track multiple orders at once and identify any inventory problems or production delays.
Warehouses aren’t the only places to benefit from AI. This technology is critical for every stage of inventory management and is expected to gain traction across the retail industry as businesses seek to gain an edge over their competitors.
Check out five ways AI in inventory management gives your company an advantage over your competition.
- Better Demand Forecasting
AI is equipped with software that can use advanced logic and analysis to learn how to manage everyday business situations. Machine learning can be used to analyze customer data to predict trends based on region, season, and changing trends to give you an edge over your competitors. It can also collect data from external sources, such as social media and online reviews, to create algorithms that can predict future inventory needs.
These abilities are critical with the flood of data available to today’s businesses. Manual processes simply can’t keep up.
- Boosted Productivity
Companies can automate their workflow by setting up rules that trigger specific actions without human interference. AI can monitor and manage things like cycle times, lead times, errors, item quantities, temperatures, and even planned downtimes.
This automation allows employees to focus on more valuable, revenue-generating projects, such as those that promote company growth and product quality improvements, because repetitive routine tasks are automated.
A warehouse automation system can automate the movement of inventory into, around, and out of warehouses, requiring little or no human intervention and emphasizing physical and digital processes simultaneously. For example, a warehouse management system can track how many SKUs will ship in the next 24 hours and direct workers to pick them all at once to avoid repeat trips. Automated warehouses could use AI, cameras, and sensors to help an autonomous mobile robot (AMR) navigate a warehouse and put together an order without human assistance so humans can focus on other tasks.
- More Accurate Customer Service
A modern order management system provides detailed inventory data in a centralized database accessible to all team members—from the back office to the warehouse. AI can provide a highly accurate, up-to-date inventory database and can assist in maintaining optimal stock levels by automatically reordering when products run low or are out of stock.
A proactive customer service creates loyal customers who are likely to share their positive experiences with others, hence growing your customer base and bottom line.
- Streamlined Warehouse Management
We have already looked at how AI can track inventory for improved productivity, but do not overlook how it can also streamline warehouse management and decrease the chances of human error. By utilizing AI with cloud-based capabilities, accurate information can be accessed instantly, allowing for informed decision-making.
AI can handle logistical tasks like tracking pallets or inventory control, freeing up human workers as well as budget requirements. You can even update things like wage and performance updates so you can access up-to-date data on employee performance.
- Reduced Downtime
AI utilizes predictive algorithms to learn from past failure patterns and avoid these issues in the future. This ability reduces downtime and saves money. For example, if a machine has a history of needing repairs at a specific interval, you can schedule maintenance before an anticipated breakdown can occur, allowing the machine to continue running without fail.
The same method can be used in your IT department to predict the best time for server updates and maintenance to eliminate server downtime.
AI in Inventory Management Improves Your Processes
AI in inventory management has done nothing short of revolutionizing modern systems. At this point, we haven’t even seen what it will be able to do going forward. We do know that when you deploy AI in inventory management, you take your processes to the next level by improving the user experience of your team members and your customers. Sales will increase while you keep your costs in line, and your company’s overall productivity will improve.
With all these advantages available, are you interested in learning more about AI in inventory management from PositiveVision? We have been assisting small and medium-sized manufacturing and distribution companies with their business software needs since 2002. PositiveVision helps their customers become more competitive, productive, and profitable. To find out how we can do the same for your company, To discover more about PositiveVision and our ERP solutions, contact us to speak to one of our product experts today.