Why Poor Data Quality Is a Major Supply Chain Roadblock

Introduction

Supply chain management is inherently data-driven, with data influencing every aspect of operations, from inventory management to demand forecasting.  However, poor data quality, marked by inaccuracies and inconsistencies, can lead to inefficiencies, increased costs, and missed opportunities.  For instance, inaccurate inventory data can result in stockouts or overproduction, both of which have serious financial implications.

In this blog, we will delve into the challenges posed by manual data collection, the advantages of mobile data collection, and the financial benefits of using a mobile inventory management solution.

How Manual Data Collection Creates Problems in Data Quality

Manual data collection methods, such as paper-based processes or data entry into spreadsheets, are common in many warehouses despite their inefficiencies. These methods are prone to errors, with experts estimating that manual data collection can achieve only about 60% accuracy. This leaves a significant margin for mistakes, which can lead to incorrect inventory levels, delayed shipments, and increased operational costs. Let’s take a simple example of a receiving clerk, who might hastily write down an incorrect item number. This is then misinterpreted by another clerk when entering the ERP system. Such errors not only disrupt operations but also erode trust in the system and impact customer satisfaction.

How Mobile Data Collection Eliminates Errors

A mobile inventory management solution makes the data entry process a simple and effortless process. Using a mobile inventory management solution, you can easily scan barcodes and QR codes to automatically capture the information of your inventory, devoid of tedious, manual entries. This way, you can drastically minimize human mistakes, while ensuring near 100% data accuracy.

When this solution integrates with your in-house ERP system (SAP or Oracle), it offers two-way data synchronization – your warehouse personnel can easily access the ERP data, while the scanned inventory data gets automatically synced at the backend.  This way, your inventory personnel will have access to the latest data, while empowering them to make the right decision on the go.

Now that you know how a mobile inventory management solution ensures accurate inventory data capture and eliminates manual, paper-based processes, let’s explore a simple workflow illustrating how data collection works with a mobile solution.

A Simple Workflow Process of Collecting/Collating Data Using a Mobile inventory management Solution

Here's a simplified workflow illustrating how mobile data collection can streamline inventory management:

• Receiving process: Upon receiving a shipment, your team uses a mobile inventory management solution to scan barcodes, automatically updating the ERP system with accurate inventory data.

• Inventory management: Once the data is scanned, it gets synced to the backend ERP system, letting your managers view real-time inventory levels, and ensuring that production orders are fulfilled accurately and on time.

• Production and shipping: With accurate data, orders are processed correctly, reducing errors in shipping and improving customer satisfaction.

• Continuous monitoring: Real-time data analytics provide immediate operational visibility, allowing for swift decision-making and adaptation to changing demand or supply conditions.

Financial and Efficiency Benefits of Data Collection Using a Mobile Inventory Management Solution

Adopting mobile data collection offers several financial and operational benefits that include:

• Accuracy and efficiency: Mobile data collection achieves near-perfect accuracy, significantly reducing errors and increasing operational efficiency by up to 30%.

• Cost savings: By minimizing manual processes, you can reduce labor costs and avoid unnecessary expenses associated with incorrect orders and inventory management.

• Enhanced customer satisfaction: Accurate and timely deliveries improve customer trust and satisfaction, leading to increased loyalty and repeat business.

• Operational agility: With real-time data, businesses can respond more effectively to changes in demand or supply, enhancing their ability to pivot in a fast-paced market.

In the above context, look for a cutting-edge, yet cost-effective mobile inventory management solution like that offered by Propel Apps, a leading supply chain transformation company. This solution offers the right mix of features – necessity, laced with innovation to take your inventory and supply chain management to the next level of excellence.

Using this solution, you can empower material handlers to access real-time data from your ERP environment (SAP or Oracle), perform simple tasks, and get work done without lengthy manuals or a ton of support from either business or IT. With cutting-edge features such as Vision AI for scanning, visual inspection, and Redis DB based caching for high volumes of data, you can enjoy and experience futuristic innovation, right from your fingertips. Are you interested in exploring more?

Schedule a free demo today and learn why Propel Apps’ mobile inventory management solution is the perfect choice for your warehouse and inventory operations.

Final Thoughts

Poor data quality is a significant roadblock in supply chain operations, leading to inefficiencies, increased costs, and decreased customer satisfaction. Manual data collection methods are a primary source of these issues, but mobile data collection offers a robust solution by eliminating errors and enhancing operational efficiency. By adopting a mobile inventory management solution, businesses can ensure high-quality data, streamline operations, and gain a competitive edge in the market. As supply chains evolve with technologies like AI and virtual twins, maintaining accurate and reliable data will remain crucial for success.