Are data-driven insights the future of inventory?

We’re switching from a motor factor perspective to one from MAM Software, to conclude PMF’s look into effective stock inventory management. The company believes the sector is accelerating towards a “digital-first future”, with businesses seeking smarter ways to improve inventory, reduce waste and maximise profitability.

MAM Software is confident Autopart provides robust solutions that tackle pain points, such as demand forecasting, dead stock reduction and cash flow management.

Keeping stock levels balanced to meet demand without overstocking is, from talking to our contributors so far, a challenge. It can lead to dead stock that ties up cash and consumes valuable warehouse space, whilst understocking risks losing customers to competitors due to unavailable parts. MAM Software’s Autopart boasts “advanced demand forecasting tools” which can address this by harnessing real-time transaction data to deliver precise, data-driven insights. This means you can adjust inventory based on actual purchasing trends, rather than relying on guesswork or outdated patterns.

MAM Software Product Specialist, Andy Garratt, claimed: “Our customers can leverage Autopart’s real-time data to understand both current sales and missed opportunities. They can anticipate demand more accurately, minimise stockouts and avoid tying up resources in excess inventory.”

This predictive capability means that businesses can serve customers more reliably whilst driving long-term customer loyalty, giving managers the opportunity to make informed decisions about which items to reorder and which to phase out.

Kabir Hussein of Bradford Auto Parts is one such motor factor that has utilised the strengths of Autopart: “We have complete control of our stock, and we can see what we are and aren’t selling at a glance. We can also see what our customers have paid for products in the past. This functionality is handy when building those long-standing relationships with customers.”

Christy Deegan, the managing director of Radius Components, added: “It’s easy to navigate around Autopart, and it’s a very captive system, which means we can update records quickly and effectively. The real-time, accurate view of our inventory allows us to give our customers the very best service.”

In addition, Autopart’s recommended returns process allows customers to return slow-moving items to suppliers for credit.

Managing money

MAM Software continued its insights by stating that handling cash flow is another common challenge for companies that struggle to balance order costs with customer demands – but Autopart simplifies the process with automated electronic ordering capabilities that integrate with supplier systems. The feature allows users to instantly check stock availability, compare prices and place orders at optimal times, reducing reliance on manual purchasing processes that can be slow, error-prone and costly.

Andy from MAM continued: “Many Autopart users have reported significant reductions in manual order times and improved cash flow due to more strategic purchasing decisions. By automating routine tasks, Autopart frees up staff to focus on value-added activities that drive revenue.”

Ultimately, MAM Software believes that, in a sector where margins are tight and customer demands are high, data-driven insights can be the difference between growth and stagnation.

Furthermore, in a marketplace where efficiency and responsiveness are key, adopting to innovative solutions allows for reductions in operational costs, increases in service quality and the foundations for growth.