Demand management is an essential skill for any business that deals with physical products since it impacts operational efficiency, customer satisfaction, and profitability. Demand management is basically an operational tool that businesses employ to ensure that they meet their customers’ needs and are efficient in productivity. Simply put, demand management pertains to the process of managing customer needs and demands.
Demand management enables companies to formulate and implement an actionable strategy that meets their particular industries’ current and potential future conditions. However, to come up with a successful demand management strategy, businesses must maximise innovative technologies, such as RFID for inventory management. The supply chain sector also benefits from RFID as it utilises electromagnetic waves to identify and monitor objects, and it is currently being used in several industries like retail and supply chain.
Read on to better understand how using RFID can help businesses improve how they manage customer demand.
Improving Inventory Accuracy
The premise underlying the notion that RFID can enhance demand management and supply chain collaboration is that it allows for a great deal of accurate and detailed information to be made available for every product case at every supply chain location. Because this data is more accurate and detailed, the ability of businesses to manage demand will naturally improve, and everyone in the supply chain will benefit as a result.
Basically, RFID can enhance information and inventory accuracy by providing businesses with real-time visibility and traceability of products throughout the supply chain. The technology can automate inventory counts, lessen human errors, and eliminate the need for manual data entry and scanning. RFID can likewise provide in-depth information about the status, condition, and location of inventory products, thereby helping to prevent spoilage, losses, and theft.
Optimising Inventory Levels
Inventory optimisation is the process of evaluating and adjusting a company’s inventory levels to meet customer demand while reducing costs. It involves identifying how much inventory one needs to keep on hand, where it must be stored, and when it is necessary to reorder. Efficient inventory optimisation necessitates accurate demand forecasting, which can be attained through a combination of market trends analysis, historical sales data, and customer insights.
An effective way to facilitate inventory optimisation is to use RFID. This technology can optimise inventory levels by allowing data-driven actions and decisions based on timely and accurate inventory information. It can help forecast demand, plan resupplying, and adjust orders in accordance with consumption patterns and actual sales. RFID can also aid in optimising inventory allocation and distribution by ensuring the right products are available at the right place and time.
Driving Fulfilment Efficiency
The benefit of using RFID to improve demand management can be extended to the customers. For instance, by using RFID in retail, retailers can streamline their fulfilment processes since the technology allows products to be shipped to stores and homes efficiently. Returns can likewise be sent directly to warehouses to simplify their progress through the reverse supply chain.
With the help of RFID, customers can now have a plethora of fulfilment options at their disposal, which provide unparalleled convenience and streamlined experiences that cater to consumers’ unique demands and needs. Not only will the use of RFID improve inventory accuracy and visibility, but it will also reduce the risks of oversupply and stockouts that undermine fulfilment efficiency.
RFID is an essential tool for improving demand management, as it helps businesses to boost the accuracy of their inventory, optimise their inventory levels, and facilitate the efficiency of their fulfilment processes. By using RFID as their main inventory and asset tracking system, companies can achieve unmatched efficiency in their operations and accuracy in managing customer needs and demands, which are key to earning great customer satisfaction.