The turning of a new year is traditionally a time for resolutions. But forget about joining the gym or downing spinach smoothies. Here at Workhorse, we think the New Year is the perfect time to reassess your inventory management strategy.
It may not be the most glamorous thing you’ll do this year. But taking stock and setting goals for your inventory management in 2023 really can provide so many benefits for your business, particularly in the face of a challenging economic landscape.
Here we take a look at some inventory management trends for 2023 to provide you with a little inspiration.
Inventory management trends for 2023
Supply chains are going green
In response to consumer demand, businesses are thinking more consciously about how every link in their supply chain impacts the environment.
We expect to see better supply chain mapping, so businesses need to know where goods flow to and from. There will also be increased efforts to shrink the carbon footprint of warehouse buildings and transportation solutions.
Tech will be a key part of the transition, providing the reliable data companies need to make impactful environmental change.
Digitisation is going mainstream
Paper records will soon feel like ancient history. The digitisation of inventory management will continue to make great strides in 2023.
And while some warehouses will experience the benefits of digital inventory management software for the first time, others are already way ahead of the pack. They’ll be tracking goods, in real-time, throughout the entire supply chain — from raw materials to transportation to distribution.
They’ll also use AI, robots and other warehouse automation tools to make operations more efficient and reliable.
Inflation is here to stay
Unfortunately, the inflation rate doesn’t look like it’s going to go down any time soon. As of October 2022, prices in the UK had risen around 10% since the same time last year.
The Bank of England predicts that inflation will start to fall from the middle of 2023. But in the meantime, businesses need to deal with the current economic reality. That means companies will be thinking more carefully about the stock they hold. They’ll consider reducing SKUs and may even rethink the raw materials they use to help cut costs.
A recession is likely
In yet more not-so-cheery news, the Bank of England has also predicted a UK recession. This downturn is expected to last for a “prolonged period”, with financial pros suggesting we’ll only be coming out of the woods in mid-2024.
In response to this statement, we expect companies to put even greater efforts into their forecasts. They will be making projections conservatively and trying to be as precise as possible.
Those who can, will make projections with the help of inventory and order management systems that provide reliable, real-time data.
How good inventory and order management will help your business in 2023
Planning to simply weather the storm? Or big plans for business growth?
Whatever your ambitions for your business in 2023, good inventory and order management can help you get there. That’s because when you improve your inventory systems, you can count on all of the following benefits.
Save money
Make good inventory management a 2023 priority, and you’ll see that it boosts your bottom line in a number of different ways.
You spend less money on products that end up going to waste (more on this in a moment). You spend less on staffing because there are fewer manual processes to complete. And you save money by managing your stock levels more efficiently and reducing storage costs.
This can only be good news when facing the double economic whammy of recession and inflation.
Reduce waste
When you have a handle on your inventory management, you can see exactly what’s happening with your stock.
The stuff that’s selling like hotcakes. The products that are stuck languishing in your warehouse. You get a big-picture view of your whole operation.
With this real-time insight, you can maintain stock at the correct levels and make better future stock projections too, ensuring less stock (and money) goes to waste.
Get more visibility into your supply chain
Inventory management is a complicated business. And when your stock travels from suppliers to your warehouse to retailers, manual processes make it difficult to track where your products are at any given moment.
By upgrading your inventory management in 2023, you get better visibility. This means you can manage stock more effectively while finding and resolving bottlenecks within the chain.
Planning to go green this year? Inventory management software can help you track the environmental impact of your products as they move throughout the entire supply chain.
Better customer service
Good inventory management keeps your company competitive.
With a streamlined inventory system in place, you always know what products you have in stock and when you need to order more.
This has a couple of key benefits for your customer experience:
- Stock-outs are a lot less likely
- You pick and dispatch products quickly
- You track products accurately
All of which amounts to fewer frustrated customers and more very happy ones.
Increase productivity
When you embrace digital inventory management, team productivity makes huge gains.
The whole team spends less time managing stock because all the information you need is at your fingertips. You know where to find stock within your warehouse. You know where shipments are. And you have everything you need to make decisions quickly and effectively.
Get 2023 off on the right foot with Workhorse
If you’ve decided that 2023 is the year you’ll get your inventory in order, Workhorse can help.
Workhorse is a configurable inventory management software platform designed with small businesses in mind.
We know that SME budgets are tight — now more than ever — so our software is all module-based. That means you can pick and pay for the parts you need and leave the rest.
Want to ditch manual processes and ensure better inventory visibility? Then start your free Workhorse trial today!