Optimizing Control and Visibility in Inventory Management

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10 questions to assess you current inventory management

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Effective inventory management hinges on achieving both visibility and control across your entire supply chain. The benefits go far beyond just knowing what's in stock—it directly impacts time efficiency, cost management, and even the quality of service you provide.

Did you know that "in some hospitals and health systems, staff spend 58% of their workday on indirect activity, such as searching for supplies needed for patient care activities"

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The assessment - What about your activity?

Let's assess the maturity of your current systems.

Answer these 10 questions and find out whether the visibility of your stock locations is below par, reasonable or optimal.

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The results:

1. High Visibility & Control (0-3 questions answered with "No")

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Well done! Your inventory management systems are likely well-organized and integrated, providing you with excellent visibility and control. You’ve automated many processes, allowing you to maintain accurate stock data, reduce stockouts, and avoid excess inventory. You should continue to refine these practices and explore emerging technologies to stay ahead.

Next Steps: Continue to monitor and update your systems as you grow. Look into further automation or advanced analytics toi improve forecasting and predictive inventory management.

2. Moderate Visibility & Control (4-6 questions answered with "No")

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That's a good start! You have some visibility and control, but there are areas where your system could be more efficient. You may still rely on manual updates or have some gaps in inventory tracking, which could lead to inefficiencies or inaccuracies. Improvements in system integration and process automation could help reduce these challenges.

Next Steps: Focus on integrating your systems better, improving real-time data accuracy, and enhancing communication between departments. Consider investing in tools that provide automated alerts and enhance visibility.

3. Low Visibility & Control (6-10 questions answered with "No")

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The positive side is, there's plenty of opportunity for improvement! Your inventory management processes are likely fragmented or outdated, and you may be facing significant challenges with stock visibility and accuracy. Stockouts, excess inventory, and discrepancies are more frequent, which may be contributing to higher costs and inefficiencies. Improving your systems and adopting more advanced inventory management practices should be a priority.

Next Steps: Review and upgrade your inventory management systems. Consider implementing software that integrates across departments, provides real-time visibility, and automates inventory tracking to reduce errors and inefficiencies.

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Key elements to consider:

1. The importance of remote locations

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True inventory control starts with visibility. This means having access to real-time data on stock levels, movements, and demand, not only in your central warehouses but also across all remote or mobile inventory storage locations. Without this end-to-end visibility, businesses can’t effectively manage inventory, leading to costlyinefficiencies, stockouts, or excess inventory. For instance, remote locationsin healthcare or energy sectors can experience significant delays if visibility is lacking, which may result in missed deadlines, project delays, or even critical shortages in life-saving materials.

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💡”In the renewable energy sector, one of our customers calculated a $1.6 million savings in net impact, simply by optimizing the procurement and planning just for one fan.” Moira Gilmour - Director Supply Chain Management - RNWBL, Ventory customer.

2. Understanding the flow is key

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Control isn’t just about tracking inventory—it’s about understanding the entire flow. When all parts of the supply chain are connected and operating fluidly, businesses can automate routine tasks and accelerate critical processes. Whether it’s automating alerts for low stock, implementing multi-barcode scanning for quicker audits, or digital relabelling for accurate item identification, these optimizations make the flow more efficient.

By improving the speed and accuracy of these processes, your team saves valuable time, ultimately reducing the hidden costs of inventory mismanagement and improving overall productivity.

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💡50% cost reduction and 20% profit gain are possible when investing in an automated inventory management system, per the Harvard Business Review.

3. An effective system is one that supports its users

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Operators in the field need to be equipped with simple, intuitive systems that they can easily use, regardless of their environment. Whether in a healthcare facility, on a construction site, or in the field monitoring renewable energy equipment, operators should be able to access inventory data quickly and seamlessly. With a system that is easy to use, operators are more likely to engage fully, ensuring smoother operations and better outcomes. It’s also crucial that these systems can be used with existing devices and technologies that operators are already familiar with.

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💡“Ventory leverages Augmented Reality and digitalisation to enable smarter, faster, and more accurate cycle counting. All barcodes on a packaging label are captured and registered within seconds, which helps to boost cycle counting efficiency in our warehouses.” Indira Prakasam, APAC Innovation Assistant Manager,Service Logistics at DHL, Ventory customer

4. The collateral impacts

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To effectively manage inventory, it’s crucial to not only identify the primary goal but alsorecognize the broader, collateral impacts it can have. Improving control and visibility in inventory management can lead to substantial benefits such as time and cost savings, fewer stockouts or overstock situations, and enhanced service delivery. However, the true impact goes beyond simply missing pieces or surplus items. In healthcare, for instance, inventory management is directly tied to patient care—delays or shortages in medical supplies can compromise treatment, endangering lives and affecting outcomes. Similarly, in sectors like energy, efficient inventory management ensures the timely availability of critical resources, preventing disruptions in supply that could impact global energy systems and economic stability. By reducing errors, improving efficiency, and understanding the full scope of potential consequences, organizations can achieve significant financial savings and improved overall profitability. Additionally, the often-overlooked hidden costs of poor inventory control and the untapped potential for ROI emphasize the importance of addressing these impacts on a larger scale.

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💡"We can save up to 20k EUR a month by making fewer mistakes in our processes and improving our liquidity for both projects and stock." NorvilasZukauskas - Head of Procurement - Elteros projektai, Ventorycustomer

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