Inventory systems tend to think about inventory software as some sort of monolith.
In practice, modern inventory systems can have various layers:
Identification → Connectivity → Software → Automation → Reporting
These layers can be helpful in designing an inventory technology stack based on operational needs.
1. Identification
All systems must start somewhere, and for physical assets it usually means identification.
Barcode, QR code, RFID, NFC, smart labels – there are many ways to identify an object in order to tie some physical information to a digital representation.
However, the primary question should be: what is the best way to identify an object for a particular environment?
The value of using inventory identifiers extends to other technologies, such as connectivity and tracking, which can further affect the design of the inventory technology stack.
2. Tracking and Connectivity
Once inventory objects are identified, the next question is: what to do with this information?
Some technologies, such as BLE, GPS, Wi-Fi, cellular IoT, and LoRaWAN, can be used in a variety of ways to address inventory tracking and location-related needs.
The key is to recognize that different environments may require different approaches to connectivity.
Tracking and location are also often dictated by the physical environment, so this aspect should also be considered when designing an inventory technology stack.
3. Inventory Software
Software is often a key element in any inventory system, acting as the “glue” between other technologies.
An inventory management system typically handles information about inventory items, assets, locations, orders, and reports, among other things.
Software can be cloud-based or on-premises, depending on the needs of the business.
The most important consideration for inventory software is interoperability: the ability to work with other systems used by the company.
Once the information is captured and processed, it becomes much more useful to have it work with other business systems.
For example, ERP systems often serve as central repositories for financial and operational information, enabling better decision-making.
Thus, designing an inventory technology stack also involves considerations about software interoperability.
4. Automation
At the level of information technology, there are few reasons to automate repetitive processes.
However, at the level of inventory technology stacks, automation can be critical to minimizing repetitive human effort.
Depending on the environment, various technologies can help automate inventory management and warehousing: automated storage and retrieval systems, conveyor belts, sorters, robotic pickers, pick-to-light systems, guided vehicles, etc.
However, the main point is that, wherever possible, monotonous activities should be automated to minimize human error and operational cost.
5. Reporting and Decision-Making
Finally, any inventory technology stack should be considered in terms of reporting and decision-making.
Most often, dashboards and reports are the primary way in which inventory information is consumed by managers and executives.
However, the ability to report is directly dependent on the ability to capture and process information.
Thus, if any element of the inventory technology stack is selected incorrectly, it can negatively impact reporting and, consequently, the decision-making process.
The Inventory Master demonstrates a number of technologies related to the broader inventory technology stack by focusing on tracking and identification, inventory software systems, IoT technologies, and automation/robotics.
The Big Picture: Designing an Inventory Technology Stack
The Inventory Master provides a look at the broader inventory technology stack by focusing on technologies related to identification and tracking, software, and automation.
However, a practical implementation of an inventory technology stack rarely starts with a discussion of technology.
Rather, it is usually necessary to look at the process and ask what information is generated at what stage, how this information can be captured, how it should be stored, who needs this information, and how it gets to these people in a timely manner.
What is more, it is necessary to determine what actions, if any, should be taken based on the information obtained.
This chain of questions can help in choosing the inventory technology stack that will bring the most practical benefits.
The Inventory Master aims to help in making the right choices at each stage of the inventory management process.
By focusing on the details of inventory tracking and management, it covers some of the low-level technologies that can be useful in designing an inventory technology stack.
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