While the entire world is shut indoors, and production is at an all-time standstill, there is an immense need for having enough stock to survive this non-operational period. Only countries that have a surplus number of necessary items can survive these difficult times. Thus, today inventory plays a vital role in ensuring that adequate stock is always available, and the stock can be easily transported to the point of sale without any delay. Businesses that deal with essential items and relief supplies cannot run out of stock; thus, they need an efficient Inventory Management system to manage their inventory competently.
What is Inventory Management System?
Inventory Management involves all the processes required to organize and track the stock available in the warehouse. Thus, all the components involved in the supply chain process can be managed by a single software that is the Inventory Management software.
Let’s agree none of us were prepared of the pandemic; we never dreamt of being locked in our homes for months, we never even imagined that the risk of touching an infected person could be life-taking. However, every company has its way of keeping some surplus stocks to combat such unforeseen instances. These organizations always have a crisis management stock planned.
During the recent pandemic that stormed the entire world, the relief team was working around the stock to supply the relief items to the citizens through air, road, and waterways.
Let’s look at how Inventory management systems can help companies be prepared for such unforeseen events.
- Maintaining a ‘Twofold’ inventory.
Emergency Preparedness is an essential aspect of every production business; Thus, companies need to identify critical products that can be easily stored with very less shelf space. These products can be stored in bulk, i.e., twice the rate of their current demand. The most significant advantage of stocking these products is that firstly not much effort is required to maintain these stocks, secondly compared to the cost of producing these items during the crisis would be much higher; thus, emergency stocking will reduce cost and get you prepared for such unforeseen events.
To manage all these activities seamlessly, the inventory management software is used by large organizations. Further, during the crisis, the software application only needs to pull out the record of the emergency stock available and, within no time, make it ready for dispatch.
- Zero Downtime strategy
Profitability and productivity grow exponentially when downtimes are significantly reduced. The Inventory management software helps automate processes and digitally record the health of the inventory along with the status of repairs and replacements. With such an organized process, the chances of breakdown are negligible. Thus, when the process runs smoothly, then the creation of emergency stock is easy and effortless. Further, if shut-downs happen due to any crisis, even then the unit will be able to meet the demands of its customers and also support the Govt. by supplying goods for relief.
- Do not base your surplus only on Historical Data
A typical shift in demand and supply calculated over a period is known as historical data; however, we cannot address a crisis like a coronavirus based on historical information alone. Therefore forecasting should be found on the demand data of crisis events and not on historical data. Further, the unit should always be prepared to survive even in crisis and never let their customers down, due to insufficient stock. The best way to manage these data is through automated software like the WMS system and a holistic Inventory Management system.
The Final Word:
Crises do not come with a warning sign; however, every organization must be prepared for these crises. The power of technology can never be better realized, then these difficult times. The most prominent example of a well-organized inventory is that today even when production units are closed, customer demands are fulfilled on time.