Technology has allowed businesses to derive deeper insights allowing them to get a closer view of their revenues. The insights into revenue fluctuations correlate to customer experience (CX) which is common knowledge in most industries. However, some studies extend this relation to inventory management meaning companies can fix their revenue by cleaning up their inventory.
Much like poor service or lack of understanding of customer needs or insufficient technological support, improper inventory management can lead to customer dissatisfaction. Inventory is a critical cog in the wheel of the supply chain for retail and e-commerce businesses. They rely heavily on inventory management to ensure products are delivered on time without having to spend any excess amount and/or resources on storing them. Customers often tend to switch the retailer or e-commerce platform when they transfer excess storage costs or when the delivery is delayed.
Similarly, businesses in other industries have their own products to build/manufacture/construct whose timely availability is affected by inventory management. Despite the difference in the nature of business, inventory affects how effectively they can deliver their product with the optimal number of resources. This allows businesses to keep the price point at a satisfactory level for customers in comparison with that of competition.
It is clear that a well-maintained inventory allows for benefits that can be transferred to customers in order to improve the value of their experience. Let’s look at a few simple ways to optimize inventory management.
To enable change at the pace and scale that current market
standards demand, it would be easier for organizations to implement intelligent
tools with analytical and forecasting capabilities. They would not only help
identify deficiencies but also assist in finding new opportunities to balance
inventory management thus optimizing customer experience as the final outcome.
Known to help companies effectively manage supply chain risks, SAP IBP’s cloud-based capabilities make it the perfect accelerator to improve inventory management and in turn customer experience, thereby boosting business profitability.
SAP IBP’s Excel-based user interface makes it easier for users to switch and adapt to the format in which insights are offered. It also offers capabilities that include exception management wherein focused planners are created for materials that are risk-prone while storing and moving thus buffering inventory risk. The IBP platform also utilizes advanced algorithms to predict and create robust statistical models that can run various scenarios considering different inputs and their effect on the lead time, forecast accuracy, and identify process deviations.
Leverage SAP IBP to absorb any demand variability and adjust supply uncertainty by identifying and addressing the root cause in time. Stabilize your supply chain.