Article | 23.10.2023
How to Optimize Inventory Management with Intelligent Automation and RPA
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Every retailer or manufacturer knows that efficient inventory management is critical for smooth business operations. Automation solutions like Intelligent Automation or RPA (Robotic Process Automation) on the other hand play a pivotal role in streamlining inventory management.
RPA automates repetitive tasks, such as data entry, order processing, and stock level monitoring, by mimicking human actions. Implementing automation in inventory management saves time and resources while ensuring accuracy and consistency in your data. It prevents stock-outs, minimizes waste, and streamlines production processes. It also facilitates scaling operations without the need for additional staff.
To make the most of streamlining your inventory management with automation, it’s crucial to understand your existing processes and workflows. This will help you identify the ideal processes that are the best candidates for automation that will make the most impact, like for example streamlining manual data entry. If you’re interested in learning more about how Sisua ensures successful automation development, read this article here.
Real life case examples of Inventory Management in Retail Industry
Using automation in their inventory management was a game changer for our Chilean customer in the clothing industry. It not only benefits their customers but also enhances operational efficiency and frees up their workforce from routine tasks.
The customer is a global clothing chain with a subsidiary in Chile. The robot updates the SKUs database daily based on the European subsidiary’s web catalog. Manually, this process would take 100 hours, but with the robot, it’s done in 4-6 hours—20 times faster. Daily execution wouldn’t even be possible manually. This automation increased standardization and traceability to 100%, and it is also a valuable tool for BI. The automation collected 45,000 SKUs and 160,000 images, significantly improving the organization’s eCommerce management.
Automation can also be used to alert when SKUs are running low or predict product sell-outs based on historical sales data. In this case, we automated a Chilean retail company’s restocking process. The replenishment algorithm gathers sales and stock data, determining the necessary replenishments for each store. The replacement information is then sent to the Brand Manager and other users via email.
This automation made the process 25 times faster, from 23 hours to less than one hour. It also improved KPI reporting, standardized the processes more, and prevented stockouts, ensuring customer satisfaction.
These two real life cases are just two examples of how automation can be used in inventory management. Below we listed some of the most typical and efficient inventory management
5 Ways to Leverage Automation for Improved Inventory Management:
- Automate data entry by using bots.
- Monitor inventory levels in real-time and trigger replenishment orders automatically.
- Set up alerts for unusual inventory changes.
- Generate regular reports on inventory status, trends, and key performance indicators using RPA.
- Streamline inventory management with automation to reduce the risk of human error.
In today’s fast-paced market environment, accurate inventory data is vital to meet customer demand and avoid stockouts. Intelligent automation solutions optimize inventory by automating data entry, order processing, generating reports on inventory trends and usage patterns while providing valuable insights, and streamlining supplier communication. By providing real-time visibility into inventory levels, automation helps you make informed decisions about replenishment and future planning.
All in all, automation increases accuracy, efficiency, and creates cost savings in inventory management. Every retailer and manufacturer should already be leveraging this technology in their operations.
Automation in Supply Chain Management
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