- Improves Pricing and Sales Forecasting
Profits can only be realized through accurate pricing and sales forecasting. Therefore, real-time tracking allows companies to monitor the movement of goods from production to delivery. In analyzing this data, businesses can get insights into the time it takes for products to reach customers. Such information is important in pricing strategies and makes sales forecast more accurate based on real-time market demand.
- Provides Insights into Demand
Modern-day customers are highly demanding. Therefore, any business needs to find ways of understanding their demands for successful supply chain management. Tracking customers in real-time gives businesses up-to-date information on customer preferences, buying patterns, and market trends. This valuable insight enables them to align their inventory levels and production schedules with customer demand, reducing stockouts and improving customer satisfaction.
- Enhances Planning Capacity
Good planning keeps the supply chain ticking despite challenges. This is an area where real-time tracking proves important. It equips businesses with instant visibility into the movement of goods throughout the supply chain. Visibility allows proactive planning and decision-making, enabling businesses to adjust various aspects, such as production schedules, optimize routes, and allocate resources effectively. The data collected allows companies to respond quickly to unforeseen disruptions.
- Real-time Supply Chain Visibility
Real-time tracking technologies provide businesses with end-to-end visibility into their supply chain operations. From the moment a product leaves the factory to its final destination, organizations can track its location, condition, and estimated arrival time. This allows proactive management of shipments, reducing delays and improving customer satisfaction.
- Leads to Better Inventory Planning and Development:
Inventory management is one of the main roles of the supply chain, which, if done well, contributes to its efficiency. With real-time tracking, businesses can monitor inventory levels in real time, enabling more accurate demand forecasting and optimized inventory planning. Further, better visibility into inventory eases the identification of slow-moving or excess stock. Implementing just-in-time inventory practices and improving overall inventory turnover rates can also be achieved. This reduces holding costs, minimizes stockouts, and improves cash flow.
- Improves Order Management
Real-time tracking enables efficient management of orders throughout the supply chain. With this, companies can track the progress of orders, monitor fulfillment, and proactively address any issues or delays. Such visibility and control enhance order accuracy, reduce lead times, and improve customer satisfaction.
- Monitors Vendor Performance
With real-time tracking, businesses can monitor vendor performance. They can also track the movement of goods from suppliers, which allows businesses to assess vendor reliability, on-time delivery performance, and product quality. Such data enables companies to identify and address any inefficiencies or bottlenecks in the supply chain, mostly caused by underperforming vendors. This leads to improved vendor selection and better overall supply chain performance.
- Better Reporting Capacity
Real-time tracking gives businesses accurate and detailed data on various supply chain metrics. Companies can then analyze and leverage this data to generate comprehensive reports and insights. With such access to real-time reporting, companies can identify trends, measure key performance indicators (KPIs), and make data-driven decisions to improve operational efficiency, reduce costs, and enhance customer satisfaction.
Generally, real-time tracking improves immediate supply chain operations and leads to better long-term processes. Using real-time data and insights allows businesses to continuously optimize their supply chain strategies, identify areas for improvement, and drive ongoing efficiency gains.