On-the-Go Inventory Management

Introduction

The auto parts industry is experiencing a significant transformation, driven by technological advancements and evolving consumer demands. According to Global automotive industry statistics, by 2033, the market size is projected to reach around $6.9 trillion. (Source)

With increased complexity of supply chains and the demand for advanced components, such as electric motors and Advanced Driver Assistance Systems (ADAS), the need for efficient inventory management solutions becomes a necessity, rather than a luxury. In other words, mobile inventory management systems are perceived essential for businesses looking to optimize operational efficiency and responsiveness.

This blog throws light on this aspect, highlighting the challenges faced by the auto-parts industry and how on-the-go inventory management overcomes these problems in optimizing the warehouse efficiency of such organizations.

What is Inventory Management?

Inventory management refers to the process of supervising and controlling the ordering, storage, and use of components that a company employes in its production processes. With best inventory management practices, an organization can maintain a healthy amount of inventory to rightly meet the customer demands without overstocking or understocking.   It primarily involves four key stages such as:

• Tracking inventory levels: This stage involves gaining knowledge about what you have on hand at all times.
• Forecasting demand: This process involves predicting the future sales, so you can easily adjust the inventory based on the current market demands.
• Managing orders: Fulfilling the right customer orders on time hinges on your organization's best inventory management practices.
• Minimizing costs: This is the most important metric to maintain a healthy inventory level in your organization. This is possible only when you minimize excess inventory and associated carrying costs.

From the above discussion, it can be inferred that effective inventory management is crucial in the auto parts industry due to the high costs associated with parts and the need for timely availability to avoid production delays.

Also Read: Top Inventory Management KPIs for Supply Chain Optimization

What is On-the-Go Inventory Management?

With the advent of technology, the erstwhile manual inventory management practices are slowly getting replaced by automated processes. Though desktop-based solutions have been in vogue since many years, they however do not completely fit into current industry dynamics.

At this juncture, mobile solutions are playing a key role in taking the automation to the next level. Technologies like barcode scanning and geographical positioning systems (GPS) are revolutionizing the current inventory and logistics practices.  Mobile solutions leveraging these technologies are making significant inroads in the inventory and supply chain management landscape. This mobile centric inventory management, also referred to as on-the-go inventory management refers to mobile solutions that allow businesses to manage their inventory remotely using smartphones or tablets. This approach contrasts with traditional inventory management, which typically relies on fixed systems and manual processes.

Let's decode some of the key differences such as:

• Accessibility: On-the-go systems provide real-time access to inventory data from anywhere, enhancing flexibility.
• Speed: Mobile inventory management solutions enable quicker updates and transactions, reducing delays associated with manual entry.
• Integration: Most of the mobile inventory management solutions integrate seamlessly with existing enterprise resource planning (ERP) systems, providing a comprehensive view of operations.

This way, on-the-go inventory management is a game-changer in the auto-parts industry that responds swiftly to changes in demand, thereby streamlining operations.  

Explore: ABC Analysis in Inventory Management: Benefits & Implementation

Current Supply Chain and Logistic Challenges Plaguing the Auto Parts Industry

The auto parts industry faces several challenges that complicate supply chain management. Some of the key challenges include:

• Global Supply Chain Disruptions: Events like pandemics (Ex: Covid) or geopolitical tensions can severely impact supply chains, leading to delays and increased costs.
• Rising Costs: Fluctuations in raw material prices and transportation costs can strain profit margins.
• Inventory Visibility: Lack of real-time visibility into inventory levels can lead to stockouts or excess stock situations.
• Complexity of Operations: The growing variety of vehicle models and parts increases the complexity of managing inventories effectively.

These challenges necessitate innovative solutions that can enhance agility and efficiency in inventory management.

Also Read: Mobile Inventory Management Solutions: Cut Costs & Boost Efficiency

Overcoming the Challenges with On-the-Go Inventory Management

To tackle these challenges, the auto parts industry needs to increasingly adopt on-the-go inventory management solutions. These solutions offer a plethora of benefits as outlined below:

• Real-Time Tracking: A mobile inventory management solution allows for real-time tracking of inventory levels across multiple locations, ensuring better visibility and control.
• Improved Communication: With seamless connectivity options such as notifications and instant messaging features, your teams can communicate instantly through mobile platforms, facilitating quicker decision-making processes.
• Automation of Processes: Automating routine tasks such as stock counts and order processing reduces human error and saves time.
• Data Analytics: Advanced analytics capabilities incorporated in a mobile inventory solution enable businesses to forecast demand more accurately and optimize stock levels based on real-time data.
• Inventory Audits: A mobile inventory management solution facilitates quick audits by allowing employees to scan barcodes or QR codes directly from their devices.
• Scalability: As your business grows, a mobile inventory solution can easily scale to accommodate increased complexity without significant additional investment.
• Enhanced Customer Service: With better inventory visibility, you can fulfill orders more efficiently, improving customer satisfaction.

Considering the above takeaways that drive your inventory efficiency to the next level, look for a cutting-edge, yet a cost-effective mobile inventory management solution like that offered by Propel Apps. This solution streamlines complex supply chain processes for Oracle EBS, Oracle SCM Cloud, and SAP S/4 HANA while efficiently capturing and maintaining your barcode inventory data. To know how Propel Apps's mobile solution transforms your inventory and warehouse efficiency, schedule a free demo with us.

Final Thoughts

In an ever-evolving auto parts industry landscape characterized by rapid growth and increasing complexity, on-the-go inventory management solutions represent a crucial advancement. By leveraging mobile technology, businesses can improve their operational efficiency, enhance customer satisfaction, and better navigate supply chain challenges. As you consider your own approach to inventory management, embracing these innovative solutions may be key to staying competitive in this dynamic market. The future is mobile—are you ready to make the leap?