Inventory challenges are front and center in today’s business of distribution. New obstacles continue to emerge around each corner and the need to stay current is paramount. Supply chain issues, getting items out the door, hiring/retaining skilled labor and lasting implications from the pandemic have led to a unique landscape for distributors. 

Forward-thinking distribution management organizations know that the way to answer these rising concerns is through digital transformation. From installed automation technology to mobile data solutions to data security and cloud-based operations, there are many options to choose from. 

So what’s the best approach? Here are three ways for distributors to embrace digital inventory trends for 2023. 

Prioritize Your Approach 

According to the 2022 Digital Inventory Report, the biggest challenge for many manufacturers and distributors is that there are too many challenges. The top three reported issues include over/understocking of inventory, inaccurate inventory data and inventory traceability. 

Digital technologies offer many ways to operationalize inventory management and enable real-time decision-making. But this only works if you know what challenge to concentrate on first. 

Begin by outlining each of your challenges and the potential solutions to help solve each challenge. Then, identify the budget needed for each item as well as future spending. Allocating for an increase in annual spending will be necessary as more digital investments are made. In fact, more than half of the companies surveyed plan to invest more in their supply chain technology in the upcoming year. 

Finally, make a plan for how to implement and integrate your new technology into existing systems, followed by staff training. The last thing you want is to invest in a new technology and to then have it sit untouched. 

The process of digital transformation is never ending and there are many elements to consider. Starting with the basics can help you streamline an approach to your digital inventory journey. 

Automation is Key 

A fundamental component of digital inventory solutions is automation technology. After all, paper processes and broken systems lead to user error, lack of updated information and numerous inefficiencies. 

Both inside and outside the warehouse, digitally automating processes can lead to increased speed, transparency and timeliness. In fact, the transactions-in-milliseconds workflows these types of automations provide have led to significant time and cost savings. 

A variety of technologies fall under the digital automation umbrella. Mobile barcode scanning is by far the most common solution used according to 83% of respondents from the Digital Inventory Report, though only 16% feel their mobile systems are sufficient for their current needs. 

Technologies like mobile barcode technology gives distributors access to accurate, real-time data to inform their decision making. The distributors who choose to implement digital automation technologies will have a competitive advantage. 

Don’t Forget Your People 

New digital solutions can solve many of the problems impacting inventory management. But even these new solutions have obstacles which must be taken into consideration. 

One of the key aspects distributors often face with digital technology is employee buy-in and engagement. In fact, 65% of survey respondents noted that user adoption is a significant challenge. Regardless of the technology, ensuring you have a strategic implementation plan can help increase adoption rates. Tailored and guided training tracks can help speed onsite training for new users by as much as 80%. Also, look for technology solutions that are user-friendly with fast onboarding and training that is well documented and proven. 

New technology should be seen as an investment in your people first and foremost. Focus on the benefit to your employees and what they will care about. Mobile barcoding, for instance, eliminates repetitive tasks and allows your employees to perform tasks that have a bigger impact on the bottom line. This reduces stress and in turn boosts job satisfaction. 

Staying Competitive in the Years to Come 

More and more, companies that rely on digital inventory management are investing in automated supply chain technologies. Not only that, they are also spending more because the return provided by the technology includes greater efficiencies, improved data for agile decision-making, and better controls over costs to ensure both customer and business demands can be met. 

While the industry continues to face intense pressure, digital technologies can help provide an answer to help distributors move forward with confidence.