Inventory tracking is an essential component of the downstream supply chain as it tracks and monitors inventory across multiple warehouses and locations. Inventory tracking is no simple task, and if not managed correctly, it can disrupt and negatively impact the transport and distribution processes in your supply chain. Many businesses within the Oil and Gas industry have turned to inventory tracking software to assist in stock management and inventory control to enhance productivity and effectiveness.
What is Inventory Tracking?
Inventory tracking monitors where the inventory resides in the company’s supply chain. This provides you with data on what inventory is available, how much stock there is, where it is located as well as quality. Inventory tracking also allows you to identify any theft or loss of inventory and is just one component of a company’s inventory management system.
Why is it important to manage supply chain inventory levels in an Oil and Gas industry? The answer is simple. With up to date information on inventory tracking, you can accurately plan and fulfil orders more efficiently and effectively. By using inventory tracking information, you can ensure that, where multiple locations are concerned, your trucks are going to the right terminal or depot to pick up the right product and that your customers are receiving what they have ordered when they need it. This reduces stockouts, improves productivity and enhances customer service levels.
Many Oil and Gas companies have turned to inventory tracking software to ensure that the processes and systems related to inventory management are optimised to increase the productivity of the overall downstream supply chain.
Benefits of Inventory Tracking Software
There are several different benefits to implementing an inventory tracking software as part of your inventory management system. These benefits include:
- Increased productivity and accuracy – by implementing inventory tracking software, you can reduce error rates and improve inventory accuracy, which will enhance your overall ROI.
- Effective decision making – through the implementation of this type of software tool, you will gain insight into any stock management problems or issues and proactively fix them before they become more costly to the business. For example, having too much stock of one product and not enough of another.
- Enhanced visibility – increased transparency into stock levels and the quality of stock available will provide you with the necessary information needed to plan and forecast effectively for demand and supply.
- Effective quality control – with inventory control and tracking software tools, you are able to locate, track and monitor the quality of stock. This allows you to identify potential problems related to deadstock and stock shrinkage from loss or theft.
Each of these benefits impacts how the distribution and transport of products are managed. Without inventory tracking software, you will be unable to fulfil sales orders because you will not have insight into inventory levels, what inventory is sitting in what location and what stock is available for sale. This will negatively impact the other systems and processes in your downstream supply chain. For example, if a truck is sent to a depot to collect stock and either the stock is not there, or the right amount of stock is not there, then the distribution process is held up, resulting in the customer’s order being delayed. These types of disruptions will impact the customer experience and the overall profitability of the business.
What to consider when looking for Inventory Tracking Software?
There are several different benefits to incorporating inventory software into your inventory management system. With so many software options on the market, it is important to look for key features that talk to the needs and requirements of big and small businesses within the Oil and Gas industry. Below are some of the elements to consider when looking for inventory tracking software:
Real-time intelligent information processing
When choosing a stock management software solution, look for one that offers real-time access to essential inventory related information. This includes information on inventory items, where they are located, how much is available etc. This process often includes using different systems like RFID and barcode scanners to track inventory.
Digital tracking
Reduces the need for paperwork by implementing a software solution that allows you to manage all information relating to bills of materials, purchase orders, stock levels, locations etc. digitally without using hardcopies/paper. This saves on time, storage space and resources.
Seamless integration
Look for a software solution that can seamlessly be integrated into your overall inventory management solution. This kind of software solution should combine different work processes in one environment, allowing various departments to use one effective tool.
Scalability and flexibility
Cloud-based inventory tracking software solutions offer scalability and flexibility. Examine the add-on software applications that can be scaled to meet your business needs based on work volumes. This allows the solution to work for your daily operations and then also provides flexibility to respond to short term spikes in workloads if necessary.
User friendly
When considering an inventory tracking software, ensure that you are choosing a solution that is user friendly and that employees of all levels will be able to utilise.
Conclusion
Inventory tracking software solutions are essential in ensuring that your downstream supply chain is operating effectively. Not only does this software solution enhance accuracy, but it provides vital information in real-time for demand and supply planning purposes. If your stock management is not handled effectively, it could negatively impact both service delivery and overall profitability. When considering an inventory tracking solution, look for a system that is user friendly, can be easily integrated into other systems, is scalable and one that will allow for real-time data tracking.
When in doubt about what type of software solution to implement, turn to a partner with years of industry experience like Adapt IT Energy. As an Oil and Gas industry expert and thought leader, Adapt IT Energy, provides flagship software solutions to suit your unique business needs. We are a proud partner of ORTEC across South Africa and Africa and are able to implement advanced software planning solutions from beginning to end. Take your transport and distribution systems to new heights with software solutions designed for growth.
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