When retailers and wholesale distributors think about inventory visibility, they usually picture what’s happening inside their warehouses or distribution centers. But there’s a whole other side to this story — getting accurate status updates for products in transit remains a big challenge. Without reliable tracking systems, identifying where and how items go missing or get delayed in the supply chain can feel like finding a needle in a haystack.
This gap in visibility can lead to major issues, like not knowing the status of your stock until it’s too late. Picture the chaos when products expected to hit shelves next week haven’t even left their previous stop.
That’s where accurate real-time tracking, down to SKU-level detail, comes into play for maintaining On-Time In-Full (OTIF) delivery standards. So with a widespread need to improve tracking capabilities, you should read this piece with one clear goal in mind: make every item accounted for, from departure to delivery and minimize the risk of surprises along the way.
Trends and Insights in In-Transit Inventory Visibility
The push toward real-time tracking in inventory management is changing the face of supply chains worldwide, thanks to advanced technologies like RFID, barcode scanning and predictive analytics. From warehouse to customer, you might want to familiarize yourself with the details.
Keeping Up with the Times: The Shift Toward Real-Time Tracking in 2024
This year marks a pivotal, innovation-driven year for real-time tracking because inventory management requires an undeniable need for precision and speed. Every step — from stock replenishment to successful order fulfillment — requires pinpoint accuracy.
When it comes to fulfillment optimization and hands-on tracking, nothing beats Radio Frequency Identification (RFID) and barcode scanning. Barcodes are those familiar black-and-white lines we see on almost everything. They’re simple to use: a quick scan and you immediately have vital information about the item’s status and whereabouts. On the other hand, RFID is like barcode scanning on steroids. These small but powerful tags use radio waves to track items, without needing to see them, and enable seamless, real-time tracking. Although RFID comes with a higher cost, the bang for your buck is undeniable — beyond the item-level monitoring, they also enhance security and authenticity and bring a new level of sophistication to inventory control and supply chain transparency.
How Data Analytics and Predictive Tools Are Changing the Game
Data analytics tools are making waves in inventory management by providing an eagle-eye view of inventory levels. They decipher trends and anticipate needs, all in real time. Imagine having the power to see exactly what your inventory will look like next week, next month or even next quarter. This kind of insight helps avoid overstocking or, worse, running out when customers want more.
Thanks to predictive analytics, guessing games in inventory management are becoming a thing of the past. By analyzing past sales, current market trends and customer behavior, these tools allow businesses to plan their production and purchasing with precision. This alignment with real market demands means companies can keep their inventory levels just right — avoiding costly mistakes like stockouts or excess surplus.
Challenges in In-Transit Inventory Visibility
The benefits of in-transit inventory visibility are mouth-watering for any supply chain professional. Yet, it still presents many challenges, from unexpected supply chain disruptions to the hurdles of integrating complex systems. Whether a natural disaster throws supply chains into disarray or outdated systems complicate effective tracking, pay attention to what you could be up against.
Supply Chain Disruptions
When natural disasters strike or geopolitical tensions flare up, a supply chain can become chaotic. We’re seeing this happen in real time these days, from tornadoes in the Midwest to wars in the Middle East. These disruptions can delay shipments, drive up costs and cause a ripple effect of problems from one end of the supply chain to the other, leading to significant financial hits and frustrated customers.
To stay ahead of these challenges, companies need to build resilient supply chains that can bounce back quickly. It means prioritizing carrier diversification, having a variety of suppliers on hand, using predictive analytics to spot trouble before it happens and adopting flexible logistics that can shift gears as situations change. It’s also about keeping everyone in the loop — strong communication across the supply chain helps keep everyone on the same page to react immediately and effectively to minimize the impact of disruptions.
Integration Hurdles in Complex Systems
Integrating various systems in a supply chain can feel like making a pizza with mismatched ingredients. When some systems are paper-based, it’s like guessing what’s inside your dough, making it difficult to achieve the perfect blend. Mismatches like this can obscure what’s really happening with your inventory and complicate effective tracking. It’s mainly a common issue with older systems, where often the only clue to what’s on a pallet is the bill of lading — a document that confirms the shipment but lacks details about its contents.
To overcome these roadblocks, investing in solutions that integrate seamlessly is key. Technologies with open APIs are game-changers, as they allow different systems to communicate flawlessly and give a clear picture of every item, down to the SKU level. This benefit especially comes in handy when shipments are broken down mid-transit for delivery to multiple destinations.
Addressing Specific Issues: Shrinkage and Accurate ETAs
Losing track of inventory and miscalculating estimated times of arrival (ETAs) can hurt your company where it hurts the most — the bottom line and customer trust. The “Shrinking Shrinkage: Solutions for Improving Inventory Visibility” report by OneRail sheds further light on this.
Shrinkage and Its Impact on In-Transit Inventory Visibility
Imagine ordering 100 units of a new product for your store, but by the time they’re supposed to arrive, 10 have mysteriously disappeared. That’s shrinkage — a mix of theft, mishandling and damage during transit that’s all too common and costly. According to the report, a stunning 67% of logistics leaders say they’ve faced such losses, which can cost anywhere from $100,000 to a whopping $5 million every year.
So, what’s the solution? OneRail recommends tackling inventory issues with two key strategies: detailed item (or SKU-level tracking) and enhanced data analytics. By tracking each product from warehouse to delivery, businesses can catch exactly where items are falling through the cracks, whether due to theft or mishandling. Such attention to detail means customers are more likely to get their orders complete and in good shape, leading to happier experiences. Plus, by combing through the data using analytics, companies can spot trends and problem spots within their supply chain.
Bill Backs and Claims Attribution Accuracy
The accuracy of bill backs and claims attribution for effective inventory management is another key point addressed in OneRail’s report. Errors in this area can lead to significant financial losses and strained relationships with partners. According to the report, 86% of supply chain leaders highlight the complexities and economic implications of sorting out who foots the bill for these issues.
Real-time visibility into shipments changes the equation here. It means companies can see where their goods are at any moment and in what condition. Such oversight dramatically cuts down on customer complaints about missing items — 88% of leaders noticed a drop in these issues thanks to better tracking. Not only does this make resolving claims smoother, but it also helps refine delivery paths and speed up service for happier customers.
A New Solution for In-Transit Inventory Visibility from OneRail
With an eye toward the future, embracing technologies that make inventory visibility clearer and help eliminate shrinkage is the way forward in last mile logistics and the entire supply chain. That’s why OneRail’s new OmniPoint® Inventory Visibility platform represents a giant step forward.
- Enhancing Visibility with Advanced Technologies: OmniPoint Inventory Visibility utilizes various technologies, from computer vision scanning to barcode integration. Its agnostic API works seamlessly with your existing tools to tackle product shrink effectively and enhance your inventory management system.
- Impact on Customer Satisfaction: With improved visibility, companies can better meet customer expectations regarding delivery times and order accuracy (OTIF). Such transparency increases customer trust and enhances the overall service experience.
- Real-time Visibility and Supply Chain Optimization: OmniPoint Inventory Visibility offers real-time insights down to the SKU level for precisely tracking and managing every item throughout the supply chain. This vital data helps make informed decisions, optimize logistics operations and reduce potential disruptions.
- Improving ETA Predictions: The system’s integrated platform approach gives you a clear view of all your products in transit. It includes detailed reports on how long deliveries take with different carriers and data to help you spot trends. Together, you have the resources needed to make your delivery time predictions more accurate, leading to better planning and resource allocation.
- Embracing Challenges and Opportunities: Rolling out new tech can be tricky, from guaranteeing it works with what’s already there to getting everyone up to speed. However, the opportunities for streamlining warehouse operations and reducing shrinkage are immense.
Upgrade Your Inventory Visibility and Supply Chain with OneRail
Keeping a close eye on in-transit products is the key to avoiding mishaps and surprises. With the right technology, you can track every item down to the SKU level and catch any missing products before they become a bigger issue. Advancements in tracking technology and data analytics are turning these pain points on their heads with solutions to take operations, customer satisfaction and OTIF deliveries to another level.
OneRail’s new OmniPoint Inventory Visibility platform is what’s making the news lately. Yet, for years, OneRail’s led the way in last mile delivery and logistics as a whole with transformative solutions. The OmniPoint Platform offers tools like automated rate shopping and intelligent matching, all supported by real-time visibility. OneRail’s courier network of over 12 million vetted drivers also handles every shipment with care. At the same time, 24/7 Exceptions Assist™ offers proactive monitoring by logistics experts who manage and resolve any potential disruptions before they spiral.
Read the full report for complete insights. Be sure also to schedule a demo with OneRail and see how its solutions can upgrade your in-transit inventory, final mile delivery and more.
