Table of Contents
Past and recent trends of the information system in the inventory management
Past and current issues of the information system in the inventory management
Future developments and issues of the information system in the inventory management
Inventory management refers to the administration of non-capitalized assets which are known as stock and inventory items. It is a major component of supply chain management which promotes the flow of goods and services from the manufacturers to warehouses. The point of sale is also facilitated through inventory management. Different kinds of inventories are dealt with by inventory management such as raw materials, packing material, finished goods, work-in-progress, and MRO supplies (Singh & Verma, 2018). An information system is known as a socio-technical and formal system that is intended to gather, process, store, and allocate the information. Four components of the inventory system are technology, task, structure, and people (Khanam, Siddiqui & Talib, 2016). This report aims at analyzing the trends, issues, and developments of information systems in inventory management. Past and recent trends of the information system reflect the role of management information system in inventory management which proposes some issues that can be dealt with by future developments.
Inventory management has evolved several trends by including management information systems. With the help of software, organizations manage the processes and procedures of inventory management to connect and track the goods and services which are aligned in the business. Information, goods, and activities are identified across the information system in the organization to manage the stock (Nicasio, 2019). The maintenance of information regarding inventory has changed with the involvement of technology. Before the evolution of the management information system in inventory management, the reports and databases were maintained manually that can affect the organization of data. A single database can impact the maintenance process which leads to the corruption of data. Through effective technology, the role of the information system is changing that promotes the analysis and prediction of buying trends (Tamás & Illés, 2017). With the involvement of different reports and processes, through the computer system, the trends are evolving technology. Recent trends in the inventory system are based on quick delivery, personalized initiatives, advanced forecasting, season based product, and suggestions (Nicasio, 2019). Inventory management trends in the information system include change with the advanced technology that promotes quicker and easier delivery in the organizations. The management of information follows the below-mentioned trends:
Several issues are identified with the information system in inventory management. It includes the past and current issues that affect the performance of the business. In a competitive marketplace, it is necessary to manage the inventory system effectively. The transition from manual inventory management to automated barcode system in the organization ideas to create several issues (Fountas, et al., 2015).
Several issues can be identified with the management of information in inventory management. Financial reporting and internal control affect the inventory management system of an organization. Tracking and valuation of the inventory are considered among a major issue to raise funds Information storage and retrieval system affects stock control. A vast amount of materials in the product can impact tracking and valuation. The cost issue affects the potential profits of the business which can lead to an imbalance in the organization (Feng, Li, McVay & Skaife, 2015).
The future trends of inventory management can be seen through improvement in demand. Supply chain methods, inventory-automation, demand, and supply forecasting and integration with the inventory are the future developments of information system in the inventory management. A stable and safe stock level is possible through effective inventory management and managing information system in the organization (Speranza, 2018). The issue of overstock can be managed by an effective information system that promotes demand forecasting and providing an idea regarding the sales and future demands of customers. Deadstock and expired stocks can be efficiently managed by inventory management system by utilizing information from different software. Streaming analytics is another development for the future which can impact real-time data and help the organization to take effective decisions. Statistical tools are used by analytical data to enhance the streaming of data and managing the personalized models which can impact the sales of the organization and promote potential profits.
Timely information in the real-time data can promote the components of supply chain management and help the organization to manage inventory and change the supply prices accordingly (Larson & Chang, 2016). The issue of stock-outs can also be managed by a management information system that can promote efficiency in the inventory management system and fosters better personalization. Through cloud-based computing, the information system can use algorithms and coding that can provide an efficient platform for Application programming interfaces (APIs). It can promote Enterprise resource planning (ERP) for better reporting facilities and managing organizational skills to improve business performance (Larson & Chang, 2016). A personalized model for inventory manages the stocks effectively through artificial intelligence in the organization. Recommendation of the products and prices are managed by artificial intelligence to promote better tracking and using customer buying behaviour. The future development of the information system in the inventory management is based on new technological advancement which promotes artificial intelligence (Speranza, 2018).
The information system in inventory management brings an effective change in the organization through organizing and managing the stocks and providing better options for planning. The past and recent trends of information systems in inventory management show the technological change in the software to improve the operations and manage the products effectively. Artificial intelligence is the future of the inventory management that promotes automatic organization of inventory and predicting future sales to manage the stocks and overcome the issues of inventory management. Consumer buying behaviour can be predicted by the software that enhances organizational skills to foster a personalization model (Larson & Chang, 2016).
It can be concluded that the inventory system is focused on managing the stocks and maintain the flow of supply chain management for the effectiveness of the organization. A management information system is necessary for inventory management to collect, organize, and manage the information regarding the stocks of the organization. Past and recent trends of the information system focus on the real-time data which is using by the organizations in managing their stocks and forecasting sales and demands. With the help of artificial intelligence, the products can be managed by their expiry dates that can enhance the operations of the organization and reduces the issue of spoilage and dead stocks. The major issues with the information system in inventory management are identified through the tracking and valuation of the products. While the future developments of the inventory management focus on the Application programming interfaces (APIs) and Enterprise resource planning (ERP).
It can be recommended that organizations can use inventory as a strategic asset to manage the quantities and gain competitive advantage by substantial benefit. Analyses for each component in the supply chain management enhance the functioning of the entire supply chain that optimizes the inventory investment. Warehouse management and demand forecasting can help to optimize the inventory and manage with the capability to maintain an accurate log for each product. Artificial intelligence must be used by the organization to maintain effectiveness in the inventory management system.
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