Managing Business Responsibly

3 Reasons To Upgrade To A Digital Supply Chain Network Service For Your Retail Business

by Priscilla Terry

How do you coordinate and manage your supply chain network? If you're still using a series of outdated spreadsheets and limited capability software programs — you're probably not where you need to be. Other areas of your business and the clients you serve have advanced just as new technology has become available. Your supply chain network should match this growth, and upgrading to a digital platform could help. 

1. Product Availability

Upgrading to a digital supply chain network service can increase the availability of your products. These systems use advanced tracking and reporting features to keep an accurate count of which products you have on hand, their quantity, and where they are in the store, such as on the shelf or in the inventory room. However, the benefits don't stop there. 

These systems also provide automatic notifications for variances in product availability. When the number of available products falls below a certain threshold, the system alerts you so that you can order more of the product. With this information, you can stay on top of product shortages and keep your shelves stocked. 

2. Inventory Cost Control

Product availability is important, but only when it makes cents — literally. Older methods of supply chain tracking rely on long-term trends to determine what products are needed and where. The problem with this type of setup is that it's easy for retailers to purchase inventory based on trends that are no longer relevant for their business.

A digital system with real-time access and data retrieval means that you can closely monitor exactly what products you need on a daily, weekly, or even monthly basis. As a result, you are less likely to purchase inventory that won't sell. You'll be more confident that the inventory you have on hand is going to give you a profit. 

3. Multi-Party Access

A major disadvantage that comes with outdated supply chain tracking methods is that it is a challenge to share information in real-time, to all the important parties involved in the process. This problem makes it harder to keep every department within the organization on the same page.

However, maintaining satisfactory product availability standards, controlling inventory costs, and ultimately, better managing the total cost of your goods involves a partnership. When everyone on the team has access to the same information, they're able to meet these goals more efficiently. 

Contact a digital system installation and support professional for more information on retail supply chain logistics services