How user mistakes can be prevented in Inventory Management System with machine learning anomaly detection
Odoo provides efficient stocking methods to organize your warehouse and enable smart double inventory systems. But what happens if someone makes an incorrect entry in your inventory management system? We created an Odoo module that understands your data, identifies anomalies, and helps you prevent damages. This module uses Machine Learning anomaly detection technology.
Human beings are always prone to errors, however if this happens with your inventory, it can cause unprecedented disruptions in your supply chain. Often, it means that an unusual occurrence has taken place. This could be a human data-entry error, a tagging error or even corporate espionage. Ultimately causing major changes in your balance sheet and reflecting poorly on your finances and balance sheets. If your inventory balance is incorrect, it could affect the cost of goods sold and profits, having dramatic effects on your business performance.
So, what are some common mistakes that your employees could make?
- Miscounting of physical inventory
- Incorrect assigning of costs to inventory
- Error in identification of inventory items
- Oversights in measuring Inventory in transit
- Mistakes in dealing with consignment inventory
- Errors in cut-off procedures followed during the inventory count
What does this module do?
This module understands your inventory data patterns and uses machine learning anomaly detection to automatically identify anomalies in your data. This machine learning driven anomaly detection combs through vast amounts of data to identify and alert you for any rare items, events, or observations. Once identified, it reports these unexpected dips or spikes to you immediately.
Prevention is better than cure. A lot of times, employees could make errors mentioned above. We designed an Odoo module that safeguards you against all these errors.
- Understands your data – The module understands your inventory data patterns and registers them in the system to keep a robust track of the usual quantities or amounts that you generally operate your inventory with.
- Identifies anomalies in your data – It uses machine learning for anomaly detection in your data. It identifies any entry that breaks this pattern and falls out of the purview of your usual transactions, procedures, and quantities.
- Helps you prevent damage – Finally, it combs through vast amounts of your data to identify and alert you for any rare items, events, or observations. Once identified, it reports these unexpected dips or spikes to you immediately.
Take a look at this detailed explained Machine learning anomaly detection video:
How does it work?
We train data with the existing set of the transaction for regularly used products and their locations.
After this, we use the test data, which is a matrix of current stock moves. This data is used to find a pattern of transactions from the trained data to be compared to.
After this, we use the tested data, which is a matrix of current stock moves. This data is used to find a pattern of transactions from the trained data to be compared to.
When can you use it?
From warehouses in manufacturing factories to delivered products in retail, this cutting-edge machine learning automation can be used for anomaly detection across all industries. If your business relies on inventory or raw materials, this module can help you avoid errors in stock inventory.
- Manufacturing factories and warehouses
- Delivered products
- Inventory or raw materials that are received
- In-stock inventory
How can we help?
Over the years Bista has been helping businesses reshape their digital processes. One of the key practices that we take pride in is our Machine Learning developers who can seamlessly integrate your ERP system with intelligent technologies like Artificial Intelligence and Machine Learning for your business.
Contact us for more details.