Getting Ready for 2025: Inventory Management Resolutions

As we head into the end of 2024, businesses across all industries are looking back on their year and forward to the new one. For those in warehouse and inventory management, this is the perfect time to review operations, fix the problems and set big but achievable goals for 2025.

Making smart, data-driven inventory resolutions will help you manage and track inventory more, streamline operations, future-proof your warehouse and drive your business forward.

We’ve been lucky to support our customers through another great year and as an order and warehouse management system, we’re here to help you set your resolutions for the year ahead.

Let’s get started.

Inventory Management Resolutions

1. Review 2024: Lessons and Performance Gaps

Before you plan for the future, you need to review the past year’s inventory management processes.

Review your inventory and warehouse management in 2024 and you’ll discover valuable insights into what’s working and what’s not. Think about:

• Inventory Accuracy: Did you achieve consistent accuracy or were there gaps? High accuracy means less stockouts and excess inventory, happier customers and more efficient operations.
• Operational Hiccups: Were there any recurring problems with picking, packing or shipping? If so, these will show up as areas for improvement in your workflow to streamline your operational processes in the coming year.
• Returns Management: With eCommerce returns on the rise, a smooth returns process is key. Review and enhance your inventory management for returns to make sure it’s efficient and customer demand focused.
• Technology Usage: Did you use your WMS to its full ability? Make sure your team knows the advanced features of your inventory management software, from inventory tracking with barcode scanning to real-time stock visibility.

This isn’t about finding fault but about gaining clarity on where small changes can make big differences in 2025.

2. Set Clear and Measurable Goals

Goal setting is a great way to motivate teams, measure progress and stay on track all year. Start by setting overall goals then break them down into smaller, measurable goals.

Here are a few examples to get you started:

• Increase Inventory Accuracy by 5%: Accuracy is key to optimal inventory levels. Increasing inventory accuracy by just 5% will reduce inventory costs and stock discrepancies.
• Reduce Order Processing Time: Customer expectations around speed are increasing every year so it’s important to optimise order processing. Setting a target to reduce order processing time by 10% will make a big difference to your team’s productivity.
• Cut Labour Costs with Automation: If your team is still doing certain tasks manually, consider investing in an automated inventory management system. Automation will cut labour costs, reduce errors and allow your team to focus on higher-value tasks.
• Lower Stock-Outs by 20%: Stockouts are costly, both in lost sales and customer dissatisfaction. Work towards reducing stockout events by improving your inventory planning and reordering points to keep up with fluctuating customer demand.

3. Data-Driven Decision Making

Data-driven decisions are key to effective inventory management strategies. Use your inventory management system to collect and analyse data points so you can make informed decisions for your business. Here are data-driven strategies to consider:

• Use Real-Time Data: Use your WMS’s real-time inventory visibility to keep an accurate picture of stock levels. Real-time inventory data means you can respond to changing demand and prevent excess inventory and stockouts.
• Analyse Seasonal Trends: Review historical sales data to forecast peak periods. This will inform your stock replenishment schedule and prevent being caught out during busy times.
• Optimise SKUs: Not all stock is created equal. Use data to measure the profitability of each SKU. Identify underperforming items and optimise your SKU range so you can focus on high-value items that contribute to your bottom line.

These will give you a clearer path to efficiency through your inventory management process control and cost savings and help you make smarter inventory decisions all year.

4. Future-Proof Your Warehouse with Technology

Technology is moving fast and to stay competitive you need to get on board with new tools that will future-proof your business. With a modern WMS like Datapel, you already have a good base, but here are other technologies to consider as you look to 2025:

• B2B Sales Portal for Order Simplification: If you deal with repeat orders from other businesses a B2B sales portal like Datapel’s MyAccount can simplify order and inventory management, give clients a self-service option to view inventory levels, place orders and track order status in real-time. This will reduce back-and-forth communication and improve order accuracy.
• Automation in Picking and Packing: Automated inventory management tools like light-guided picking and mobile barcode scanners can reduce time spent on manual processes. Many of these tools integrate with your inventory management system so you can boost productivity without major operational change.
• Mobile and Cloud-Based: Mobile and inventory management platforms give your team real-time data whether they’re on the warehouse floor or working remotely. This will improve accessibility and response times and make your warehouse more agile.

You don’t have to invest in all of these at once. Start with solutions that align best with your current needs and then expand as your types of inventory and warehouse operations grow.

5. Make Sustainability a Priority

Sustainability is key in today’s business environment and making green initiatives part of your 2025 goals will benefit the planet and your bottom line.

Sustainable practices will often lead to cost savings, especially around resource usage and waste reduction. Here’s how you can get started:

• Waste reduction through Inventory Optimisation: Having excess stock can lead to waste, especially for perishable goods. By optimising your inventory levels you can reduce stock that goes unsold or expires.
• Energy-Efficient Equipment: Switch to energy-efficient lighting, heating and cooling systems. Simple changes like installing motion sensors can also reduce electricity usage.
• Recycling and Reusable Packaging: Minimise single-use packaging and invest in recyclable materials. Look for suppliers that align with your business objectives in their products and materials.

These will also demonstrate your commitment to the environment and will help your brand and appeal to eco-conscious customers.

6. Get Your Team Involved

Your inventory management software is only as good as the people using it.

Regular training sessions will ensure your supply chain management team is up to date with inventory management tools. Engaged employees will spot opportunities for improvement and take ownership of their work.

Try this:

• Monthly Training Sessions: Keep your team up to date with inventory management system updates, new technology and inventory processes.
• Cross-Training: Allow employees to develop skills in multiple areas so they can cover for each other during peak times.
• Feedback Loops: Encourage staff to give feedback on the inventory management challenges they face. They’re the first to spot issues or inefficiencies that need fixing.

By getting your team involved in continuous improvement you’ll create a culture of shared responsibility which will be key to achieving your 2025 goals.

7. Create a Continuous Improvement Cycle

Setting 2025 goals is just the start. A continuous improvement cycle will ensure your goals become lasting benefits. Set regular checkpoints throughout the year to review progress, adjust and celebrate.

Here’s a template:

1. Quarterly Reviews: Schedule quarterly reviews to review key inventory management metrics. Use these sessions to measure the impact of changes and adjust goals as needed.
2. Benchmarking: Compare yourself to industry standards or other similar businesses to see where you’re doing well and where you can improve.
3. Success Recognition: Celebrating achievements will boost morale and reinforce the importance of inventory management strategies. Recognising the team will keep everyone engaged and motivated.

FAQs

1. Why is inventory management important?

Inventory management is key to having the right stock levels, meeting customer demand, reducing costs and overall operational efficiency. By managing inventory well you can avoid overstocking, and stockouts and keep your entire supply chain running smoothly.

2. How do I get inventory accuracy?

Inventory accuracy can be achieved by tracking inventory using barcode scanning, regular stock audits and real-time tracking through a Warehouse Management System (WMS). Training staff on best practices and ensuring data-driven processes are followed also helps to keep stock records accurate.

3. What are some common inventory management issues?

Businesses face issues like overstocking, stockouts, demand forecasting and managing returns. Other common inventory management challenges include seasonal fluctuations, new technology and warehouse space optimisation. A structured inventory management system can help with efficiency and reduce errors.

4. How do I future-proof my inventory management?

Future-proofing means investing in scalable technology like a cloud-based WMS that can grow with your business. Automate where you can and regularly review and update your inventory management systems and processes to keep up with industry changes and customer expectations.

5. What’s the role of data in inventory management?

Data is key to inventory management because it gives you insights into stock levels, sales trends, and customer demand. Historical sales data helps with demand forecasting, real-time inventory data allows for more accurate tracking, better stock replenishment, safety stock, and overall better decision-making.

Now Get Ahead

2025 is on the horizon, set intentional resolutions for good inventory management and you’ll have a great year ahead. As you review the past year and look to the future, Datapel is here to help you.

Whether it’s getting more out of your WMS, selling inventory, investing in new technology or creating a culture of continuous improvement.

Datapel is here to help you manage inventory, reduce costs and make each year better than the last.

Datapel Insights

In my role, I oversee the development of insightful blogs that delve into the intricacies of warehouse management. Each piece reflects my dedication to empowering businesses through informative content. Through my team’s extensive experience in the industry, we aim to bring clarity to the complexities of WMS, helping businesses make informed decisions.

Join me on a journey through the ever-evolving landscape of warehouse technology as we explore the latest trends, industry insights, and practical tips to streamline your operations. Feel free to connect, and let’s embark on a collaborative exploration of how WMS can redefine your business efficiency.

Cheers to innovation, efficiency, and the exciting world of warehouse management!