What is digital inventory?

The ability to monitor inventory activity in real time is referred to as digital inventory.

In order to improve visibility by tracking data and gathering information as completed goods move through the supply chain, inventory tracking systems and other forms of technology are used. 

A company can monitor the amount of e-commerce inventory that is available, the locations of the items, and the performance of each SKU over time by integrating inventory management software or a more sophisticated solution like an ERP inventory system.

Brands can monitor inventory control and make forecasts and judgments about inventory allocation, restocking, and other related matters by utilizing digital inventory systems that automatically record data.

What distinguishes digital inventory from traditional inventory?

Every time new inventory was ordered, a sale was made, or an item was shipped, inventory management entailed updating or changing spreadsheets or paper records.

It should go without saying that inventory monitoring by hand is a laborious and prone to human error procedure. 

Digital inventory best practices, on the other hand, simplify data and information, decrease human error, and increase efficiency and accuracy.

Digital inventory systems can be integrated with warehouse automation systems or third-party logistics (3PL) software to improve order accuracy, expedite fulfillment, and track inventory throughout distribution locations.

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How Can Digital Inventories Be Useful?

In today's business environment, where disruptions and uncertainties are commonplace, improving supply chain resilience is imperative. The following are some ways that a digital inventory system can increase supply chain resilience:

Precise Inventory Management

Supply chain managers may make educated judgments by using precise and current inventory level information from a digital inventory system. Based on actual demand, this data can be utilized to instantly modify order quantities and production levels. Gaining more insight into inventory levels will help you prevent stockouts and cut down on excess inventory, both of which will enhance cash flow.

Effective Order Processing

Real-time inventory level information from a digital inventory system can help to expedite the order fulfillment process. Lead times can be shortened, customer satisfaction can increase, and order processing can be optimized with this information. Gaining more insight into inventory levels will help you make sure you always have the proper products on hand to fulfill purchase requests, which will cut down on the need for backorders or expedited shipment.

Improved Forecasting

With real-time inventory level information, a digital inventory system can increase forecasting accuracy. The accuracy of forecasts can be increased by using this data to spot demand trends and patterns. Gaining more insight into demand trends will help you better match order quantities and production levels to customer demand, lowering the possibility of stockouts or surplus inventory.

Supply Chain Enhancement

A digital inventory system's real-time information on inventory levels can aid in supply chain optimization. By using this data, supply chain bottlenecks can be found and efficiency can be increased. Through enhanced comprehension of the supply chain, lead times can be shortened, delivery dates may be expedited, and inventory management expenses can be decreased.

4 top tips for digitizing your inventory

The retail supply chain is being disrupted by digital change. Adding digital inventory solutions to boost internal productivity and strengthen supply chain resilience is a significant component of this change.  Here are a few methods to "digitize" your approach to inventory control.

1. Put in place an electronic system for managing inventories

Putting in place an inventory management system is a wonderful place to start. Depending on your demands, there are a number of solutions available on the market, including multichannel inventory management, with various features.

Remember that best-in-class technology is used by tech-enabled 3PLs like WorldCraft Logistics, which has integrated digital inventory management systems.

In this manner, companies may delegate fulfillment to third parties while monitoring digital inventories and controlling SKUs from a single dashboard at no additional expense.

We may programmatically obtain real-time information on the quantity of each product that is presently being held in WorldCraft Logistics' warehouses by using the company's Inventory API.

Currently, we link this inventory data into our accounting platforms by generating bespoke reports using this API.

Team Waveform Lighting

2. Select applications that handle inventories automatically

To further automate the inventory management process from beginning to end across numerous channels and warehouses, you can also select from a variety of inventory apps. 

As an illustration, WorldCraft Logistics's technology offers digital inventory automation features, such as the capacity to establish alerts for reorder points in the event that inventory levels drop below a predetermined level.

3. Set up an automated storage facility

Implementing a warehouse management system (WMS) and linking it to your digital inventory management solution are key components of warehouse digitization. 

This gives you visibility into operations and makes it simple to increase productivity in your warehouse.

For example, WorldCraft Logistics employs a proprietary WMS to automatically assign orders that are comparable and have inventory in the same area to the same picker. This makes the order picking process less complicated and more batchable and efficient.

You may also keep an eye on what inventory is being received and what is being selected and ready for shipping by digitizing warehouse inventory management procedures.

We find WorldCraft Logistics's openness, ease of use, and dashboard to be really impressive. It is hard to maintain track of what is coming into or going out of the warehouse since so many 3PLs have front-facing software that is either defective or nonexistent.

When it comes to the supply chain, all I have to do is enter the inventory that we have on hand into a WRO on the WorldCraft Logistics dashboard. From there, I can view information about what's incoming, what's at the docks, and other details.

It makes things so much easier because I can quickly view all of those numbers.

SuperSpeed Golf, LLC's operations manager, Harley Abrams 

4. Select the ideal partner for digital inventory

Rather than opting to collaborate with many partners to address distinct supply chain challenges, search for a logistics provider that provides digital inventory management systems, dependable fulfillment services, and warehousing all under one roof. 

The same patented technology powers the worldwide fulfillment network provided by WorldCraft Logistics, a 3PL. This makes activities more visible, transparent, and consistent without requiring you to handle the labor directly. 

Additionally, you receive access to sophisticated data and analytics reporting that makes it simple to hand off digital logistics management to the professionals while keeping an eye on things like orders, inventory levels, shipping, and more.

It's time to use digital inventory to revolutionize your online store

Going digital doesn't need a significant time or financial commitment. You can transition from manual inventory tracking to digital inventory and order fulfillment with the assistance of WorldCraft Logistics.

With top-notch retail fulfillment technologies, WorldCraft Logistics is a technology-driven 3PL that runs an international fulfillment network.

Merchants can outsource fulfillment to a 3PL with complete operational insight to save money and time as their business grows. 

You can estimate demand, manage SKUs, evaluate inventory velocity, optimize product allocation, and efficiently replace inventory by setting reorder point notifications all from a single dashboard.

You may quickly see inventory levels throughout your whole distribution network at any moment.

Although we have a Shopify store, we don't track inventories using Shopify. We utilize WorldCraft Logistics for all of our inventory monitoring so that we can keep track of every perfume bottle, know how much is remaining, know what has been dispatched, and receive much more information about each order. The metrics are really beneficial.

We frequently download Excel files from the WorldCraft Logistics dashboard and utilize them for a variety of analyses, including looking at order weights, analyzing cancellations, and determining whether WorldCraft Logistics is shipping orders on schedule.

Even their warehouse receiving orders (WROs) for sending inventory have a very simple operating mechanism.

Ines Guien, Dossier's Vice President of Operations

Digital inventory and digital logistics management is ultimately an expensive and time-consuming endeavor for your company.

By giving you the tools and technology you need to expand your company and spend less time managing the supply chain, WorldCraft Logistics simplifies inventory management. 

The Digital Inventory of WorldCraft Logistics Links Capabilities

The computerized inventory of WorldCraft Logistics facilitates speedier component delivery to original equipment manufacturers.

For OEMs and suppliers, the conventional methods of acquiring parts for mending outdated machinery can take weeks or even months. Delays in component delivery, however, can have a greater impact on lives than just money in vital sectors like electricity, railroads, and defense.

Businesses can browse parts, see prices, and make part orders through a network of internal and external suppliers by using WorldCraft Logistics's digital inventory. Businesses can cut down on overstock by using low-volume on-demand production to order items when needed with shorter lead times.