3 Ways to Decrease Your Inventory Cost with Predictive Analytics

Inventory management has long been a delicate balancing act, even for the companies with sophisticated software systems. Establishing optimum stock levels, identifying slow-moving items, and reducing unnecessary material movements can increase productivity and reduce wasted labor and materials.

Wholesale and distribution companies have leveraged computer-based systems to help them maximize the efficiency of inventory replenishment and order processing for decades now. Newer software, however, provides additional ways to decrease your inventory costs. For example, one type of technology allows you to decrease you inventory cost with predictive analytics. Predictive analytics contribute to better visibility and control of inventory costs.

Decreasing Inventory Costs with Predictive Analytics

By adopting predictive analytics, your company will gain a new perspective on inventory control and an enhanced ability to reduce inventory costs.

Visibility

Access to historical information combined with sales forecasts allows for better management of ordering inventory. By timing purchases to coincide with demand, your stock levels are reduced and warehousing capacity requirements minimized. Now you can order more effectively and take advantage of available discounts as well as reduce on-hand inventory and tax liability.

Consumer Behavior

By analyzing past purchase demand from your customers, predictive analytics can improve the accuracy of forecasting future needs. Good forecasting improves order planning and picking/shipment scheduling.

Trends

Predictive analytics can help purchasing teams and production planners identify trends and evolving patterns in demand. Without these sophisticated tools, you might discover these patterns too late in the game – or not at all. Being aware of these patterns provides better purchasing planning and reduces stock requirements.  

Predictive analytics offers additional cost reduction benefits by providing detailed information – including visual representations of statistics – to all necessary employees. Therefore, all the players are on the same page, which improves both communication and collaboration.
 
Decrease Your Inventory Costs with Southeast Computer Solutions

The consultants at Southeast Computer Solutions have contributed to inventory cost reduction across many industries with the use of predictive analytics.  
Southeast Computer Solutions provides a single-source solution for leveraging innovative systems that will improve efficiency and reduce your inventory costs. We partner with your business to ensure your complete satisfaction. Contact us today to see how our team of professionals can add value to your organization

About Southeast Computer Solutions

Southeast Computer Solutions is based in Miami, Florida, and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care. Learn more by visiting our website or calling 305-556-4697.