Retailers are showing a greater interest in the cutting edge IOT solutions for business owing to the greater challenges produced by the volatile market nature. With more savvy technologies and business processes based on IOT solutions taking up the space in transportation and logistics market, retailers are also lining up to know which IOT solutions can be beneficial for their part of the job which involves primarily inventory management and dispatch. This means that a majority of the tasks where retailers function involves tracking monitoring and managing huge amount of freight which can become overwhelming at the time in absence of right support. We are figuring out the needed push generated by the IOT solutions for the retailers by closing the gap between them and the challenges faced in the market.
IOT solutions can pose as a complex term if the retailers directly dive into the mechanism rather than first figuring out the utilities. Once they retailers get clear about the features and their role in developing an automated and transparent supply chain, they become more confident about these IOT solutions. With the help of RFID machines, GPS trackers, sensors and barcode scanners, the agenda is to make the process of collecting and distributing data as feasible and automated as possible. Once the data collection and other parts of the business become automated with the help of Machine-to-Machine (M2M) communication, retailers can think ahead for analyzing this data. Few key areas where IOT solutions have helped retailers to go completely independent and save on business are explained further here.
In general, 25% is the share of expenditure on inventory management in total business cost. An automated inventory is a carefully designed process with the help of interconnected machines. When we say interconnected, we are essentially talking about the M2M communication which comes as a fundamental requirement for having efficient IOT solutions. We have already discussed the adoption of cloud-based inventory which makes the real time status updates available to the internal system. The same system is then accessed on the internet to sync the data with the inventory statistics and keep it updated for the future operations. How about automatically placing the order for the next fortnight in advance since inventory statistics are already indicating a runout.
An automated inventory working on IOT solution imparts much more confidence in the retailers as they can have greater control over the inventory with time on their side. IOT solutions also nullify any chance of human error in updating of stock data in the system. Therefore apart from reducing the redundancy of data operations, automated inventory helps the retailers on multiple levels with syncing of data, lower operational cost and faster updating of stock status.
One of the most time-consuming aspects of shipping is the dispatch process. Knowing this, many retailers are coming forward to seek IOT solutions especially for this part of the shipping cycle. Therefore, having automated inventory mostly works on inclusion IOT solutions which are aimed at completing the dispatch as fast as possible. The obvious outcome is faster shipping but in the hind side, it also helps the retailers to go for moderate shipping cost since the dispatch process is already fastened. This means that with the inclusion of few IOT solutions, retailers are able to save not only money but are also increasing their profit margin by going for moderate cost shipping options.
Save with Data
It takes a while for any retailer to gather and understand the different metrics involved in the inventory management. Inventory turnover, Gross margin ROI, Sell-through percentage and similar other jargons can easily put the retailer on the backfoot when it is time to understand what exactly is going on at business front. While IOT solutions not only help in the digital collection of data with RFID, barcode scanners, and connected M2M communication, they also help in developing a system where you can directly see the key KPIs without going through the rigorous process of calculations. With inbuilt calculation settings and programming the modern day “Retail calculators” are helping the retailers to get the statistics on their fingertips without missing any key detail.
While experience is irreplaceable even today in retail industry, we have now got few sure ways to get the decisions right for the retailers with comparatively lesser experience too. Predictive analysis for the collected data via IOT solutions can help in understanding the business as well as market behavior and helps the retailers in taking a call on crucial matters such as demand forecast. Without these IOT solutions and predictive analysis methods, few vague points can make a not so pleasant difference in the overall outcome of the business strategies. Decades of data and industry trends can be deciphered and utilized with the help of the intelligent predictive analysis for retailers.
$1.75 trillion is the annual figure for the losses that is caused to the retailers across the globe due to poor inventory management and returns. There is a huge scope of improvement in inventory management with the help of IOT solutions which can bring down this staggering figure. Retailers are realizing this fact and are therefore more interested in equipping their business with right IOT solutions which can make them more efficient and in control of their business. Dreamorbit, with its remarkable team of 280 professionals, is consistently delivering valuable and productive IOT solutions to Retailers, 3PLs, and other logistics solutions providers. If you want to be part of this next wave of inventory management, check out the IOT solutions which can help you out in your business.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.