Chapter #9

Inventory Management Statistics 2023 in Malaysia

In this chapter, we have collected the most important and latest Inventory Management statistics in 2023 for you to learn more about inventory management.

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Are you curious about the state of Inventory Management in 2023? Then look no further.

We’ve curated, vetted, and categorized a list of up-to-date inventory management statistics that Malaysian businesses should know.

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Inventory Management Statistics 2023 in Malaysia

Top Inventory Management Statistics

Inventory Management

Supply Chain

Manufacturing

Retail

Technologies

Sources

Dynamics 365 Intelligent Order Management

Top Inventory Management Statistics

Reducing stock-outs and overstocks can lower inventory costs by 10%.
74% of businesses have experienced delays in shipments and much longer lead times.
72% of retailers plan to reinvent their supply chain with real-time visibility enabled by automation, sensors, and analytics.
A Bain and Microsoft survey indicates that 56% of respondents plan to increase their investment in demand forecasting and predictive planning.
68% of businesses are looking to reduce their reliance on working with only one supplier, and 62% diversify their manufacturing supplier base.
According to research in the publication Supply Chain Quarterly, companies whose supply chain performance ranks in the top 25 percent have market capitalizations between 1.7 and 3 times higher than the industry average.
90% of industry growth will be driven by companies that have success engaging with customers.
Inventory management ERP technologies can reduce inventory requirements up to 30%, increase employee activity by 40% and reduce overall operation cost by 45%.

Inventory Management

74% of businesses have experienced a shortage of critical parts and materials across all industries.
The inventory management software market will reach at an estimated value of USD 3.82 billion and grow at a CAGR of 6.12% in the forecast period of 2021 to 2028.
Asia-Pacific dominates the inventory management software market due to rising demand for the RFID technology.
1/3 of businesses will miss a shipment deadline because they’ve sold an item that wasn’t actually in stock.
54% of warehouses plan to expand the number of inventory SKUs carried over the next five years.
By some estimates, item-level tagging, when implemented properly, can increase inventory accuracy from 63 percent to 95 percent.
Businesses that have invested in machine learning to manage demand forecasting have achieved 90% accuracy with a three-month lag compared to manual forecasting, amounting to only 60% accuracy.
7% of small businesses don’t track inventory at all!
AI-enabled supply chain management has enabled businesses to improve logistics costs by 15%, inventory levels by 35%, and service levels by 65%, compared to slower-moving competitors.
75% of all supply chain management professionals want to improve their inventory management practices.
The top issue in 46% of warehouses today is human error.
Worldwide cost of inventory distortion (including shrinkage, stockouts, and overstock) is an estimated $1.1 Trillion.
Reducing stock-outs and overstocks can lower your overall inventory costs by 10 percent.
There are currently 75 software vendors offering inventory management solutions.

Supply Chain

By 2023, at least 50% of large global companies will adopt AI, advanced analytics and IoT in supply chain operations. This will result in industry shifts causing large revenue increases or cost savings.
Just 20% of companies have end-to-end supply chain visibility.
76 percent of supply chain leaders say that developing digital and analytics capabilities is very important to their strategy.
The global supply chain market is expected to experience a CAGR of 11.2% from 2020 to 2027
54% of respondents said fast delivery was their first or second most important criteria when ordering.
23% of all respondents said supply chain resiliency is the most important for effective supply chain.
24% of small businesses track their inventory with a pen and paper.
67% of warehouses plan to use mobile devices to speed up their inventory management.

Senior management now regards supply chains as an integral part of adding greater shareholder value. 40% of businesses will increase their supply chain investment with the primary goal of increasing speed, agility, and resilience.
90% of businesses plan to change their supply chain network to optimize their supply chain.
57% of companies believe that supply chain management gives them a competitive edge.
Reducing supply chain costs from 9% to 4% can double profits.
4% of supply chain managers use Excel spreadsheets as a management tool.
The most commonly used KPI for supply chain monitoring is daily performance.
Supply chain visibility is one of the top strategic priorities for companies around the globe

Manufacturing

Poor maintenance strategies can reduce a plant’s capacity by 5%-20%.
87% of enterprise manufacturers say they have at least one IoT project in the learning, proof-of-concept, purchase or use phase.
OEMs identify many emerging technologies as important to the collection, analysis and use of supply-chain data. These include robotics (83%), IoT (71%), AI (63%) and blockchain (53%).
87 percent agree that five years from now it will be easier for their organisation to collect, analyse and use supply-chain data to meet their strategic objectives.
51% OEMs say that they use metrics relating to customer or stakeholder satisfaction to measure the success of digitisation in their supply chain, suggesting significant room for improvement when it comes to accurately identifying and meeting customer needs.
The stakeholders that OEMs most frequently partner with for collecting, analysing and using supply-chain data are B2B customers. Forty-nine percent of respondents say they partner with them “a great deal”. Contact with direct customers, however, lags behind, with 43% of OEMs saying they partner with downstream B2B2C customers a great deal.
Expect a 50% increase in the cost f shipping raw materials. This is due to the manufacturing rebound in China and the global acceleration by countries rebuilding their inventories.
92% of manufacturing executives said AI and cognitive computing would enhance performance in production planning.

Retail

Approximately 72 percent of all retailers plan to leverage real-time inventory visibility—enabled by automation, sensors, and analytics—to reinvent their supply chains.
Compared with online xclusive shoppers, zero-inventory apparel store customers make fewer returns, buy more high-end products, spend up to 60% more on an average order, buy more frequently – with time between purchases reduced by 28% – and expand buying to 20% more product categories.
Warehouse management solutions are a must today. 25% more retailers are investing in new systems.
63% of the time inventory is accurate in retail businesses.
Evidence suggests that customers who visit these zero-inventory showrooms spend an average of 20% more than those who buy online.
80% of executives in both the retail and consumer products industries expect their companies to use AIpowered intelligent automation.
59% of retailers planning on leveraging AI to improve sell-through of inventory.
Both retail decision-makers (84%) and store associates (73%) believe customers would have a better shopping experience if retailers equipped employees with technology.
Consumers want store associates empowered with technology and believe it offers a faster shopping experience; 85% of shoppers surveyed said they liked the idea, a figure up from 56% the previous year.
Amazon uses DSNs to monitor real-time customer shopping patterns, competitor’s prices, profit margins, inventory and numerous other data points to set and adjust its product prices – pricing that can change every 10 minutes, on average – with an algorithm-boosted strategy that has helped lift the company’s profits by 25%.

Technologies

Remote technicians using AR make 50% fewer errors and improve the speed of problem-solving by 32%.
Over 50% of respondents said best-of-breed/edge applications are the best way to improve visibility into supply chain.
The most important technologies in supply chain are Multi-enterprise cloud networks and SaaS/cloud applications.

RFID can improve inventory tracking across multiple channels and in-store inventory accuracy of over 98%.

Sources

Learn more about Microsoft Dynamics 365 ERP Inventory Management Applications

Dynamics 365 is a portfolio of business applications that meets organizations where they are—and invites them to digitally transform. Each app is designed to remove the barriers and eliminate silos within organizations by working together with existing systems—or the entire portfolio of Dynamics 365 apps—for outcomes you simply can’t get unless every part of the business is connected seamlessly. Dynamics 365 offers several options for an inventory management system, each to fit your needs. Contact us to get personalized suggestion based on your needs, budget and industry.

Dynamics 365 Business Central

Dynamics 365 Business Central is an all-in-one enterprise resource management System for Small-Medium Size Businesses to centralize, simplify and automate your business processes across Finance, Supply Chain, Sales, Inventory & Warehouse Customer Service, Manufacturing, and Projects.

Dynamics 365 Supply Chain Management

Dynamics 365 Supply Chain Management transforms your manufacturing and distribution operations and predicts disruptions and responds fast by digitizing your supply chain, warehouse and inventory management, enhancing visibility, improving planning, and maximizing asset productivity.

Dynamics 365 Intelligent Order Management

Intelligently orchestrate fulfillment, automate with a rules-based system using real-time inventory data, AI, and machine learning. Adapt quickly to future order volumes, complexities with pre-built connectors to specialized technology partners for order intake, delivery and logistics services.

Dynamics 365 Commerce

Is Customer Automation and Customer Management system. Differentiate your brand by taking advantage of built-in intelligence to deliver faster, more personalized service and add value to every customer interaction.

Dynamics 365 Field Service

Provides complete field Service Management including service agreements, predictive maintenance, preventative maintenance, work order management, resource management, product inventory, scheduling and dispatch, mobility, collaboration, customer billing, and analytics.