Summary: Inventory visibility provides organizations with instantaneous knowledge of the exact locations of all items and their transitions along the supply chain. Through the implementation of barcode and RFID tracking, firms are able to cut expenditures, control inventory levels at the most favorable point, quickly react to fluctuating demands, and supply consistently, thus reinforcing their operations, gaining customers’ trust, and establishing sustainable growth with assistance from Lowry Solutions.
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Introduction to Inventory Visibility
Creating inventory visibility can be a complicated process. Inventory is often stored at many places throughout the supply chain, including the warehouse, shipment trucks, and on the shelf. The complexities of supply chains often make it difficult for businesses to employ accurate means for monitoring their inventory. It’s not uncommon for them to rely on approximations based on shipping invoices or outdated methods.
When managers take a blind eye to inventory management, they miss out on the cost-saving opportunities associated with complete inventory visibility. Implementing barcodes, radio frequency identification (RFID), or similar inventory tracking systems can provide your business with efficiencies that aren’t feasible with traditional inventory counting systems.
Benefits of Inventory Visibility
Improve Overall Efficiencies
Counting with RFID is roughly 25 times faster than traditional barcode scanning, significantly reducing costs and minimizing operational disruptions. RFID chips can be attached to products at any stage of their life cycle, enabling precise tracking and enhanced inventory visibility from start to finish. By integrating RFID tracking with mobile device management solutions, managers can monitor orders in real time, identify anomalies instantly, and make quick adjustments—saving both time and money while preventing future complications.
RFID provides computerized product management, so visibility is possible from anywhere, giving managers full control of inventory, even if it’s been outsourced or is in transit.
Appropriate Inventory Levels
One of the major inefficiencies that businesses face is improper inventory levels—both too little and too much can be costly. Excess inventory exposes businesses to greater opportunities for products to become lost, damaged, or become obsolete. It takes money to stock products with no immediate return on the investment in storage. Too little inventory prevents you from meeting customer demand, which will not only cost you the present sale but will also damage your brand’s reputation.
Improving your inventory visibility will empower you to keep the optimal level of inventory to prevent these expensive supply chain mistakes. Optimizing your inventory also ensures that your customers will always have access to the products they want.
Increase Market Responsiveness
Improved inventory visibility allows you to see market trends more clearly. When it’s obvious that more of your product is moving, you can quickly ramp up production to meet customer demand. Being a first mover on this increased demand provides you with a unique competitive advantage. On the flipside, if products are moving slower, reducing production can prevent excess inventory and save you wasted costs in the long run.
Resolve Unpredictable Scenarios
Although companies often outsource parts of their production, they cannot abdicate responsibility for inventory when it’s out of their hands. When meeting customer deadlines, a firm grasp on product timelines, even those being produced outside of your control, is crucial. To avoid embarrassing slip ups, RFID tracking and inventory visibility allow you to reduce the risk associated with outsourcing. You can monitor product whereabouts from your own firm. If a problem occurs, appropriate actions can be taken to resolve the issue—before it’s brought to the attention of your customer.
Improve Customer Relationships
Whether you’re providing products for other businesses or directly to consumers, you know the value of a good relationship. Inventory visibility bolsters these relationships by allowing you to provide products on time and have the appropriate inventory levels on hand. The ability to monitor trends in how inventory is moving means that you’ll always be able to meet customer demand. When customers are able to rely on your business, you’ll be able to develop a more loyal client base, which is always good for the bottom line.
Although implementing a system like RFID for greater inventory visibility can seem like a daunting task, the benefits outweigh the initial investment in time and money.
Frequently asked questions
The term inventory visibility refers to the capability of tracking in real-time the precise location, quantity, and condition of items in stock across different places like warehouses, in transit, and on store shelves.
The RFID technology has the advantage of being able to read multiple items simultaneously, not needing a direct line of sight, and providing quicker and more accurate inventory data than the traditional method of barcode scanning.
The practice of accurate visibility acts as a barrier against stockouts and delays, and thus aids the company in delivering products on time and keeping customer expectations consistently met.
Definitely. RFID technology, along with connected systems, gives companies the capability to trace their inventory even if it is not on their premises or on the way to their facility, and this leads to a decrease in risk and no unexpected events.
Lowry Solutions specializes in the creation and setup of barcode and RFID tracking systems, which provide instant visibility, reduce inventory levels to the optimum, and facilitate better informed supply chain decisions.
