Inventory Management Trends

Technology has had a significant impact on organizational operations. It is gradually but steadily changing how corporations manage their inventory. According to Mpwanya (2007), inventory management is critical since it ensures that expenses are kept to a minimum and that stock is available when needed. Inventory management, according to Gokarn (2010), has received a lot of attention because of its significance in ensuring that the firms’ performance is outstanding. As a result, researchers such as Balakrishnan et al. (1996), Huson and Nanda (1995), Rajagopalan and Malhotra (2001), Chen, Frank, and Wu (2001) have identified the need for effective and efficient systems to deliver results and fulfill the ever-increasing demand (2007), Gaur, Fisher, and Raman (2005), Netessine and Roumiantsev (2005), and Hendricks and Singhal (2005). As demonstrated by Dedeke and Watson (2008), companies are increasing their reliance on the inventory management systems which has led to the need to develop the systems to make it more efficient and reliable.

Emerging Trends in Inventory Management

Over the recent years, the emerging trends in inventory management have undergone a transformation which has dramatically affected how organizations conduct their business. Some of the emerging trends include online storage and back of data which will affect accessibility and ease of use of information from remote locations. The other pattern is the changes and modern ways of data analysis which has been a key factor in the decision-making process. It has enhanced the speed required to make a sound decision. The third change that is coming up is the possibility of being able to easily keep track of movement of inventory through use of radio frequency identification.

With these trends, the future of inventory management is bright, and organizations should keep track and adopt the trends to remain relevant and productive in the market.

Works Cited

Balakrishnan, R., J. Linsmeier, and M. Venkatachalam. Financial benefits from JIT adoption: Effects of customer concentration and cost structure. Accounting Review 71, 183-205, 1996.

Chen, H., M. Frank, and O. Wu. What actually happened to the inventories of American companies between 1981 and 2000?, Management Science 51, 1015-1031, 2005.

Dedeke, Adenekan, and Noel Watson. Exploring inventory trends in six US retail segments. Harvard Business School, 2008.

Gaur, V., M. Fisher, and A. Raman. An Econometric Analysis of Inventory Turnover Performance in Retail Services, Management Science 51, 181-194, 2005.

Gokarn, Rishi. “Tracking the Trends in Inventory Management in the Automobile Manufacturing Industry throughout the Business Cycle.” (2010).

Hendricks, K. B., and V. R. Singhal. Association between Supply Chain Glitches and Operating Performance, Management Science 51, 695-711, 2005.

Huson, M., and D. Nanda. The impact of just-in-time manufacturing on firm performance in the U.S., Journal of Operations Management 12, 297-310, 1995.

Mpwanya, Musenga Francis. Inventory management as a determinant for improvement of customer service. Diss. 2007.

Rajagopalan. S., A. Malhotra. Have U.S. manufacturing inventories really decreased? An empirical study. Manufacturing Service Operations Management 3, 14-24, 2001.

Roumiantsev, S., and S. Netessine. What can be learned from classical inventory models: a cross industry empirical investigation, Manufacturing & Services Operations Management, forthcoming, 2007.