Maintaining control over inventory and keeping accurate records of what is coming in and going out is a vital task for businesses. While some companies prefer using their own developed methods for tracking their inventory, others rely on more updated strategies for efficient recording in the form of inventory management software
. These solutions gives companies more control over products in stock, as they are able to see what items are available and what products need to be ordered. These inventory technology
platforms make tracking processes easier for businesses, giving them the chance to focus on other operational tasks while maintaining oversight over their products.Inaccurate systems lead to inventory mismanagement
Many companies can face the challenge of having high inventory levels, which is brought on by inaccurate recording and tracking of products. Such as the case with Fairchild Semiconductor, a San Jose, California-based firm specializing in providing semiconductor solutions to global firms. A study
by the University of Tennessee's College of Business Administration looked at the problems Fairchild was facing, which involved its distribution reports coming back late and incorrect. The company had its own inventory management system and checked its in-stock products only once per month. This in turn resulted in inaccurate reports, as Fairchild was only able to make changes to its inventory based on customers' preferences and demands 12 times each year.
The method used by Fairchild was prone to error and incorrect tracking figures, and it created a bottleneck trend of inventory, the University of Tennessee research revealed. Once the study was completed, recommendations were made to the company to help with improving inventory processes and eliminating the problems it had been facing. The first suggestion was for the business to switch to a commercial application technology platform, as Fairchild's in-house inventory strategy had proved to be insufficient. In addition, training employees to deal specifically with inventory could give the company greater control over its in-stock products.Boosting inventory efficiency with software solutions DC Velocity report
s that many businesses have faced challenges similar to the ones Fairchild was confronted with, and a significant amount have turned to inventory software
solutions to better manage their processes. This also allows companies to save money while satisfying the needs of customers and clients throughout multiple buying channels. This software adoption trend is prevalent among many industries, including technology, pharmaceuticals, manufacturing and consumer goods, the source states.