LONDON--(BUSINESS WIRE)--According to the latest research report released by Technavio, the global inventory management software market in the retail sector is expected to record a CAGR of more than 8% until 2020.
This report titled ‘Global Inventory Management Software Market in the Retail Sector 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. The report examines key emerging trends and their likely effect on future market dynamics apart from covering other aspects such as the challenges faced by vendors and the market as a whole.
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“Rise in e-commerce and m-commerce has led to the adoption of omni-channel distribution systems, which require sophisticated inventory management systems to monitor operations. M-commerce and e-commerce companies compete on the basis of price, quality, and delivery time. RFID systems use an electronic data interchange to provide real-time information about the status of ordered goods to customers and retailers,” said Amrita Choudhury, one of Technavio’s lead industry analysts for enterprise application.
Increasing acceptance of RFID technology in the retail sector is the major trend in the market. RFID systems for retail applications are applied by the business to increase their return on investment as these systems help reduce the delivery cycle time of goods and the number of defects. RFID systems provide transparency and help streamline supply chain operations. With the help of RFID systems, retailers are able to capture the data and use inventory management software and big data solutions to identify the buying patterns of customers and form different promotional schemes to increase sales.
Some of the other driving forces behind the growth of the global inventory management software market in the retail sector are as follows:
- Regulatory pressures
- Autonomous cars becoming a reality to drive market growth
- Rising awareness on automotive safety among end-users
Increase in omni-channel retailing
With the improving network infrastructure and the increasing penetration of the internet, retailers have started increasing their reach and revolutionized customers' shopping experience with the help of e-commerce and m-commerce.
Inventory visibility is the key for the success of omni-channel retailing. Retailers need real-time information about the products or goods being offered to the customer without any inconsistencies to make the model effective. Omni-channel retailing helps provide a perfect shopping experience to customers. To provide that enhanced shopping experience, retailers need accurate inventory tracking information to make better decisions and avoid out-of-stock situations by improving the distribution process.
The inventory management software helps retailers get accurate information about the movement of goods through the supply chain, increasing inventory visibility from 40%-50% (in the traditional inventory management methods) to above 90%. It helps maintain item-level data/records for better decision-making.
Supply chain inefficiencies and need for transparency
In a retail landscape, products or goods move through many stages and get distributed at every stage. It is very difficult to monitor inventory distribution and acquire accurate details of distribution. With the trend of omni-channel retailing, inventory tracking has become more complex.
Accurate demand planning by manufacturers and retailers is also another complex task because of inefficiencies such as incorrect data and delayed data flow through the supply chain. Manufacturers can obtain point-of-sale data from retailers, but without information about stock levels during inventory transportation, it is not possible to forecast the demand accurately.
Inventory management software solutions are increasingly being adopted by retailers because they can solve the challenges faced by manufacturers and retailers across the supply chain.
Increasing e-commerce transactions
The growing adoption of mobile devices, such as smartphones and tablets, and the rising popularity of mobile commerce are driving the growth of the e-commerce market. Online shoppers use mobile devices such as laptops, smartphones, and tablets for shopping. Some retailers are replacing their physical stores with the online sales channel. The need to stay competitive in the market, enter unexplored markets, meet growing demands from customers, and respond to fluctuating customer needs and business scenarios are some of the factors responsible for the rise of the e-commerce market.
The growth of the internet has been a major technological advance after the industrial revolution. At present, around 40% of internet users in the US are using the internet to pay bills, and around 35% of the internet users are purchasing products online. The number is expected to grow as the internet becomes more predominant and secure. The rise of the internet opened prospects for entrepreneurs and altered the business structure of e-commerce.
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