Inventory management solves a fundamental business need. It answers the questions of how much inventory there is and where it is located. It processes re-orders on a just-in-time-basis so that the replenishment of the inventory of any item occurs right before that inventory item is depleted. It maximizes productivity to have just enough of needed items available to never run out, while at the same time not creating an overstocked situation. Easy to describe. Sounds simple. Why do so many companies do this poorly?
Algorithms developed using computer-learning AI systems may be able to track and manage inventory better than a human counterpart. By scanning IoT data, the AI system may identify patterns that a human being may not find. This process may improve inventory management decisions.
AI may be used on its own to improve system functions such as replacement inventory ordering, or it may be combined with human supervision and human decision-making about note-worthy data patterns discovered through the AI algorithms.
Here are the ways that IoT improves inventory management:
- Real-Time Communication
- Precise, Detailed, Itemized, Location Monitoring
- Touchless Data Collection
- Warehouse Management
- Artificial Intelligence Algorithms
- Cloud Computing Enhances AI and IoT Systems
- Equipment/Fleet Inventory Management
- Better Management of Lead Times