Q. How will innovations in retail shape our future?
A. In our industry, we often find ourselves operating with tunnel vision, influenced by the complexities of billing systems, regulatory compliance and payer rules. However, it’s crucial that we occasionally step back and explore potential innovations from other sectors that could benefit us. One such sector is retail.
While our inventory challenges can sometimes seem overwhelming, consider the scale and complexity of the retail world. Retail businesses depend heavily on accurate forecasting, predictive ordering and adjustments for cyclical seasonality. Similarly to our industry, their profitability is contingent on managing inventory across multiple dimensions. Given these parallels, it makes perfect sense for us to observe and learn from the innovations they’re adopting.
I believe the most significant innovations we should focus on are Radio Frequency Identification (RFID), predictive analytics and just-in-time (JIT) ordering. While each of these is valuable, the true potential lies in the ability to capture and maintain accurate inventory counts—an area where RFID is particularly transformative.
RFID is becoming a key focus in retail, with Walmart leading the way by mandating RFID tagging for U.S. products in 2024. This technology enables retailers to count up to 300 items per second from 30 feet, track inventory by locations and identify misplaced items, which offer immense potential for our industry.
Once inventory can be tracked accurately, predictive analytics and AI come into play. These tools can forecast what and when to order, allowing companies to shift to JIT inventory management. This method can reduce inventory by 25% to 40%, freeing up cash that would otherwise be tied up in excess stock.
By embracing these innovations, we can improve our operational efficiency, reduce costs and drive profitability. Learning from retail’s success, we can refine our own inventory management strategies and build a more sustainable, data-driven future.
John Skoro is CEO and co-founder of HME360. Reach him at [email protected].
