While it might once have been acceptable for small businesses to take a backseat in terms of tech adoption, that’s simply not a tenable option any longer. Automation is an exemplar of this, as the tools available today stand to set more compact companies on the same level as larger rivals in terms of efficiency.
In a supply chain context, automating processes which used to be hamstrung by manual practices is especially attractive to SMBs. Here’s a look at a few areas where its potential is at its most conspicuous, and the tools worth considering for your own firm.
Enhancing Inventory Management with AI
Small businesses face unique challenges in managing inventory. Traditional methods often lead to overstock or stockouts, which can lead to a 35% increase in costs each year, as well as wasted time. Luckily, with the sun rising on an AI-enhanced era, such concerns are evaporating.
Why is AI essential?
- Demand Forecasting: Tools like PredictHQ use machine learning to predict demand spikes based on historical data and external factors such as weather or events. This is useful whether you want to grow a manufacturing business, launch an e-commerce site, or set up a bricks and mortar store.
- Stock Optimization: Platforms like ClearSpider automate inventory tracking, ensuring optimal stock levels by dynamically adjusting orders based on real-time data.
- Automated Reordering: Systems like TradeGecko monitor inventory levels and automatically reorder supplies when stocks dip below a certain threshold.
What about integration?
AI systems sync seamlessly with existing ERP software, simplifying implementation without overhauling current processes. For instance:
- Predictive Analysis Integration: Brightpearl integrates predictive analytics directly into its platform, helping businesses forecast needs accurately.
- Smart Alerts: Zoho Inventory offers smart alert features that notify managers of potential issues before they become critical problems.
These tools reduce human error, save time on manual checks, and allow owners to focus more on growth than daily logistics management. This is especially important for those in certain sectors, such as healthcare, where having suitably modern medical supply business strategies (see SparkShipping) in place will iron out the creases innate to the old way of doing things. So embracing AI for inventory management lets small companies streamline operations while staying competitive at a time when adopting automated tools is the norm, not the exception.
Automated Invoicing: Cutting Costs and Reducing Errors
Automating invoicing transforms another task that’s often time-consuming and error-prone into an efficient, reliable process. Small businesses stand to benefit greatly from this shift, particularly since 66% of CFOs at larger firms are increasing investment in automation and digitization right now.
Why automate invoices?
- Time Savings: Tools like QuickBooks automate invoice creation and dispatch, freeing up hours previously spent on manual entry.
- Error Reduction: FreshBooks stamps down on errors by ensuring data consistency across financial documents.
Practical benefits include:
- Faster Payments: Xero’s automated reminders prompt clients to pay invoices promptly, reducing the average collection period.
- Integration with Other Systems: Invoice2go integrates with CRM systems for seamless data flow between sales and finance departments.
It goes beyond just sending out bills, and includes:
- Expense Tracking: Wave automatically categorizes expenses based on incoming invoices, simplifying bookkeeping tasks.
- Real-Time Monitoring: Zoho Books provides real-time updates on invoice status, allowing for proactive follow-up if payment is delayed.
For small businesses struggling with cash flow or inefficient operations, implementing these tools can be a straightforward way to streamline their supply chain activities while ensuring timely payments and reduced errors. And with survey data from both QuickBooks and Xero suggesting that anywhere between 57% and 90% of SMBs suffer some form of cash flow setback at least once a year, this is something every company needs.
Real-Time Data Analytics for Supply Chain Optimization
Real-time insights are needed across every aspect of an up and coming firm, and for small businesses the use of data analytics can be doubly valuable when it comes to trimming the fat from supply chain operations. It’s a small but significant part of a $1.85 trillion market transformation.
Why focus on real-time analytics?
- Instant Decision-Making: Tools like Tableau provide live dashboards that help managers make informed decisions quickly.
- Performance Monitoring: Looker offers continuous performance monitoring, allowing businesses to track KPIs and identify bottlenecks instantly.
How does it impact the supply chain?
- Demand Planning: Anaplan uses real-time data to refine demand forecasts dynamically, reducing the risks of overstocking or stockouts.
- Supplier Performance Tracking: Klipfolio helps in monitoring supplier performance metrics in real time, ensuring accountability and quality consistency.
Additional benefits include:
- Inventory Accuracy: NetSuite provides detailed inventory reports that update in real time, preventing discrepancies between physical stock and records.
- Cost Reduction: Power BI analyzes cost patterns across the supply chain to identify areas where expenses can be minimized without compromising efficiency.
Put simply, using these tools enables small businesses to remain agile and responsive. They no longer rely on outdated reports but act on current information to maintain a competitive edge.
The Last Word
The sea change experienced by small business supply chains thanks to automation is buoying up some companies, while others flounder. It’s all about knowing what benefits exist, prioritizing tool adoption according to those that fit your needs, and keeping a close eye on how integrating new solutions is handled to avoid speed bumps.
