How Warehouses Reduce Errors with Real-Time Inventory Intelligence

Modern warehouses have the expectation to provide speed, accuracy and efficiency all at the same time. However, there are still billions of dollars lost by businesses each year due to inventory inaccuracies, picking mistakes and misplaced inventory. Through reduced errors due to minor mistakes, standard delivery times can be changed due to the impact of inventory on customer service. Warehouse functionality can be compromised if there are inaccurate stock quantities or excessive out-of-stock items.

In contrast, with the advancement of real-time inventory intelligence, warehouses can now shift from manual management of inventories along with outdated updates to real-time visibility of inventory and use of data-driven decision-making techniques.

The Actual Cost of Warehouse Mistakes

Error in the inventory system results in operational loss and cost involved in stock errors such as incorrect forcing, misplaced products in the warehouse, stockouts where there was a stock available, and over-stocking due to incorrect information and manual entry errors.

Examples of these issues can lead to product returns, wasted labor hours, late orders to customers, and unhappy customers.

What Is Real-Time Inventory Intelligence?

Real-time inventory intelligence is a real-time tracking of inventory throughout warehouse operations and updating the inventory as required.

Real-time inventory combines the following: barcode scans, IoT enabled tracking devices, Warehouse Management System (WMS), cloud-based updates of inventory, and AI analytics. Real-time inventory does not require periodic audits since all inventory updates will take place automatically with each product moving through the warehouse.

How Real-Time Intelligence Reduces Warehouse Errors

Eliminates Manual Entry Errors: Using scanned in inventory will update inventory records in an instant, allowing the elimination of human input errors. Accurate counts and a reduction in reconciliation time.

Prevent Errors During Picking: Digital Record keeping will provide workers with directions to the bin location and help confirm the items prior to packing. Reduce wrong shipments and return items.

Increase Actual Inventory Visibility: The use of live dashboards will provide a current stock level of what contains, or where items currently are stored, or what has happened to those items through time. No need to wonder what is available from the inventory and where.

Decrease Misplaced Inventory: RFID tracking and smart tagging enable immediate tracking of items to the point location. There will be less delay in item retrieval and more efficient fulfillment rates when using RFID tracking.

Reduce Stock Outs or Over Stock: Monitor stock in real-time and alert when it meets predetermined threshold levels. Improved planning for handling replenishments and optimized inventory costs.

Speed Up Cycle Counts and Audits: By constantly updating, physical audits will be completed faster and at a higher accuracy level. High level of accuracy without interrupting operations.

How Leading Indian Companies Use Real-Time Inventory Intelligence

Flipkart

By using its large fulfillment centers, the Indian online shopping leader, Flipkart provides real-time tracking for its inventory so that it can accurately pick orders and dispatch them quickly, even right to your door at the last minute. By automating the scanning and routing of products, errors are minimized at peak sales times.

Reliance Retail

With thousands of retail and warehouse locations, Reliance Retail is able to provide both real-time inventory visibility and synchronized warehousing so that its stores’ inventory is always up to date based on demand. This helps the retailer to reduce stock-outs and improve the efficiency of its replenishment process.

Delhivery

One of the largest shipping companies in India, Delhivery provides systems that provide real-time tracking of shipments, projected consolidation of shipment receipts, and transport solutions to assist their customers in managing the flow of cargo through Delhivery's infrastructure to minimize sorting mistakes and ensure accurate delivery of shipments throughout their complete supply chain.

Benefits Beyond Accuracy

Improved warehouse performance due to real-time inventory visibility: Fast order fulfillment, better labor productivity, improved forecast of supply/demand, improved customer satisfaction, lower operating costs, and all this will contribute to improved supply chain transparency.

The Future: Error-Free Warehousing

The supply chain industry is becoming more complex and customer demand is constantly growing, creating a strong need for real-time access to inventory information to run successful warehouses. Continuous inventory tracking with intelligent data analysis can substantially decrease errors and allow companies to improve their operations and quality of service.

DataSense provides solutions to give warehouses real-time access to their information, alerts to any problems with data, and the insights to resolve issues before they occur. Datasense transforms warehouse data into an easy-to-understand, controllable form that enables businesses to develop faster, more reliable and accurate operations.