It has created new opportunities and enabled businesses to increase their capacity for inventory management. However, because firms must adjust to the shifting nature of their product, this also brings forth new difficulties. Real-time  inventory management system selections, as opposed to the once-daily routine that was typical for most firms, have become more crucial than ever.

Here are 5 typical problems with inventory management, along with suggestions for how to solve them.

1. Inventory Inaccuracy

Assuring that the statistics reflect what is actually in stock is the main problem in real-time inventory management. A malfunctioning inventory tracker or user error could be to blame if there are discrepancies.

Examine several inventory management solutions to try to find a solution to this issue. Not all systems are made equal; some feature modules that can help assure the correctness of the information by utilizing various techniques like picking, cycle counting, and random sampling.

2.   Inventory Mismanagement

When products are misplaced or substituted with other items, real-time inventory management is also hampered. Regarding the latter, this might cause an even worse issue: running out of materials while they’re not where they ought to be.

To solve this problem, try establishing a written inventory management policy with 

3. Inventory Shrinkage

There is no way to continuously track your materials and supplies without real-time inventory management. This implies that there will be instances where things disappear completely without a trace.

Make sure that there are clear policies in place for all staff to adhere to when it comes to shrink to address this conundrum. You can also set up alerts and notifications using   inventory management system software so that supervisors are informed right away if an inventory count falls below a predetermined level.

4. Stockouts

Running out of a material or product during the busiest time of the day is the last thing you want. You must make sure that there is a constant flow of materials coming in and leaving out in order to overcome this difficulty.

Setting up a schedule for acquiring goods and inventory management is crucial for accomplishing this, as well as developing backup plans in case things go wrong. You are in a better position to exert more control over inventory management if your plans are properly established.

5. Inventory Complexity

Finally, managing an information overload is one of the main difficulties associated with real-time inventory management. It can be quite challenging to manage, whether it’s because there are too many distinct software platforms being used or too many different departments involved.

Firm owners and executives can consider investing in inventory management software that has built-in capabilities for real-time analytics across all sections of a business to address this issue. With the appropriate software, staff from various departments can collaborate to come to more informed judgments. Everyone will be aware of the issues and be on the same page as a result.

Takeaway

With real-time inventory management, you save time and money while operating more efficiently. However, if you can’t solve these challenges and keep them at bay, it could affect your company’s growth and performance. By having a clear understanding of these obstacles, leaders can then work towards finding a solution.