In business administration, inventory management is high on the list of priorities (Choi et al., 2018). Any business must have the proper supplies and components at the right time and in the right quantities. It helps maintain a healthy equilibrium between the company’s services and stock. Without proper inventory management, businesses will struggle to maintain an accurate count of items in stock, in storage, and need of production. Organizations may save money via more precise inventory management by avoiding the costs associated with creating items that will not sell and overstocking on ones that are selling slowly by using big data (Singh & Verma, 2018).). Data analytics, product segmentation, inventory management tools, mobile inventory management, and inventory optimization software are just some of the methods often used by businesses to manage their stock of goods through big data analytics.
According to Fisher & Raman (2018), safety stock management, integrating inventory planning into the sales and operations planning process, using supply chain network optimization tools regularly for tactical planning, thinking about the distributed order management tools to manage multi-channel complexity and reduce inventories, and upgrading to inventory optimization software are all strategies that can be used to improve inventory management.
In addition to saving money on storage and transportation costs, Ochsenius & Woolley (2022) claim that businesses may keep the items they use in stock at any time via careful inventory management. Tracking service levels to provide enough spares, categorizing inventory, anticipating demand, implementing a strategy to control obsolescence, and selling off surplus inventory are all ways to achieve optimal inventory management. Because every business has unique requirements and priorities, it is up to them to settle on a particular approach; nonetheless, it is in everyone’s best interest to practice precise inventory management to cut down on certain expenses.
References
Choi, T. M., Wallace, S. W., & Wang, Y. (2018). Big data analytics in operations management. Production and Operations Management, 27(10), 1868-1883. Web.
Fisher, M., & Raman, A. (2018). Using data and big data in retailing. Production and Operations Management, 27(9), 1665-1669. Web.
Ochsenius, P., & Woolley-MacMath, L. (2022). Improving Service Level through Component Inventory Management (Doctoral dissertation).
Singh, D., & Verma, A. (2018). Inventory management in supply chain. Materials Today: Proceedings, 5(2), 3867-3872. Web.