10 Inventory Management Trends to Watch for in 2026

Just In Time Becoming Just in Case

Research by Unleashed has revealed that the volume of stock held by manufacturers has doubled, without overall business activity rising in step. The data compared stock on hand values and quantities from Q3 2019 with Q3 2022.

This appears to signal a shift towards holding a greater quantity of safety stock as a strategy to circumvent disruption within the global supply chain caused by Brexit difficulties and – more recently – Russian military action in Ukraine.

The study looked at over 5000 businesses across Australia, New Zealand, and the UK. The results have led many experts to call this phenomenon an 'inventory crisis'. The sector with the greatest change of all three countries was New Zealand's Sports & Entertainment industry, where the average stock-on-hand value increased by 359%.

As supply chain disruptions, worker strikes, and inflation continue to shake the globe, we're predicting a continued commitment to Just in Time strategies from manufacturers worldwide.

Cloud Technology Accelerates

Cloud technology is nothing new anymore, but as the technology continues to grow and becomes increasingly easy to set up and use, its adoption rates keep climbing.

For manufacturers and other organisations looking to improve their inventory management processes, cloud technology represents a major opportunity – especially when it comes to remote working.

The benefits of cloud technology for inventory management

By signing up to a cloud service provider, you gain access to new computing power, data storage and smart technology functions that can be set up in minutes and don’t require costly on-premise hardware. Cloud services also:

• Eliminate data silos by connecting disparate business functions (e.g. accounting, inventory, customer service) to a central database.
• Easily connect high-value tools that utilise new data capabilities, like ERP, inventory management for manufacturers, smart accounting software, CRM, etc.
• Set up new services and scale up or down based on demand with very little extra cost (little to no on-premise hardware is required)

And in terms of inventory management the cloud is key to:

• Tracking inventory location and levels in real time, even for remote warehouses
• Accurately plotting costs based on live data
• Managing supplier and other vendor relationships in one place
• Improving efficiencies with data analytics
• Accessing systems and documents anywhere in the world

Investment in internet-connected systems is expected to return to pre-Covid levels.

Nearshoring & Regionalised Inventory Networks 

Global supply chains have been reshaped by geopolitical tensions, trade barriers and lessons during the pandemic. Rather then replying on a small number of distant suppliers and centralised warehouses, many companies are bringing production and inventory closer to their core markets through reshoring, nearshoring and regionalisation strategies.

Bain & Company’s 2024 research shows a sharp rise in these moves: the share of CEOs and COOs planning to bring supply chain closer to home jumped to 81% in 2024, up from 63% in 2022, and 64% of executives report ongoing investment and execution in reshoring, nearshoring and split-shoring initiatives. For inventory managers, this means designing networks that deliberately spread stock and capacity across regional hubs, rather than relying solely on a single mega-warehouse model.

What do regionalised inventory networks look like?

A regionalised network typically involves:

• Multiple warehouses or 3PL facilities placed closer to key customer clusters or production sites 
• Nearshored suppliers in neighbouring or politically aligned countries, reducing lead times and customs complexity  
• Dynamic allocation of stock based on regional demand, risk and service-level targets

These strategies build on the benefits of multi-warehousing, such as faster shipping, lower transport costs, reduced carbon footprint and more diversified risk – but with a stronger emphasis on resilience and geopolitical risk management.

Why does nearshoring matter for inventory management?

When suppliers and warehouses are closed to end customers, businesses can:

• Operate with shorter, more reliable lead times, allowing lower safety stocks for some items 
• React faster to demand changes in specific markets 
• Reduce exposure to currency swings, tariffs, and trade disruptions 
• Improve their sustainability profile by cutting long-haul freight emissions

However, regionalisation also increases network complexity. To manage it effectively, companies need robust cloud-based inventory management tools, capable of real-time visibility, multi-site planning and integrated demand forecasting, such as Unleashed. 

What are the benefits of nearshore warehouses?

• Faster shipping: By operating multiple warehouses, you can keep your stock closer to customers than if you were to operate just a central warehouse. This means faster shipping times, and lower transport costs.
• Reduced carbon footprint: Cutting your freight times doesn’t just save money, it lowers your impact on the environment too.
• Easier to scale and grow: Once you’re set up with a network of warehouses, it’s relatively easy to add a new location to the system. That opens the potential for further business growth.
• Spread your risk: Covid lockdowns, fires, floods and even political unrest are a constant risk for organisations with a single warehouse. But when you have more than one warehouse, it’s less likely that a single disaster or problem will wipe them all out - meaning other warehouses can pick up the slack if one runs into trouble.

Shipping from multiple warehouses with Unleashed Software video:

3PLs are becoming a more attractive option for more businesses.

More Widespread Third-Party Logistics

For growing businesses the cost of operating warehouses and owning vehicles can be limiting – so for SMEs in particular third-party logistics (3PL) are an attractive solution.

Technology such as cloud software and IoT has made 3PL a more appealing offer in recent years, leading to strong growth in this sector.

The 3PL industry continues to expand rapidly. The global market for 3PLs was valued at $1.1 trillion in 2024 and is projected to reach $1.9 trillion by 2030, reflecting a healthy CAGR of 8.5% over the period. This shows how outsourcing logistics is becoming a mainstream strategy for manufacturers and growing SMEs that want flexible, scalable fulfilment without heavy capital investment.  

Where once it might have been tricky to rely on third parties for vital logistical functions, now real-time communication, inventory tracking and data sharing have made it easier for different businesses to work together with no loss in service quality or delivery times.

Using software platforms such as Mintsoft, for example, 3PLs can quickly and efficiently fulfil on behalf of clients while keeping their branding experience intact – and their reporting up to date.

The benefits of 3PL for SMEs

• Cut costs: As specialist providers, 3PL companies often have good relationships with freight companies and can find ways to make deals or trim costs, which they can pass on to you.
• Take advantage of opportunities: Moving into a new market is a risk. Any costs you can cut from that experience make it easier to dip your toes in without fully committing.
• Easier to scale up or down: Your needs may change throughout the seasons. Using a third party means you could add or subtract services as required.
• Access expertise: Partnering with logistics experts means accessing their expertise and experience without having to generate your own.

Inventory Analytics

Data analytics generally requires the use of cloud technology to properly function - if key datasets are held in disparate silos across systems, they can’t be compared with one another and potentially vital information will be lost.

It’s no surprise, then, that as a cloud-based technology BI is growing, with its market size expected to reach  $37.96 billion in 2026 to $72.21 billion by 2030, at a CAGR of 8.4%. 

It’s also a trend that has reached the world of inventory management. With a digitised supply chain - and managers connected to the metrics that matter, companies are now able to access business-critical data that was previously unavailable.

Being able to track figures like product margins by warehouse, or production waste by location – and all in real time – empowers managers to make better decisions, faster.

• Read more: The 10 Procurement Metrics that Matter

Digital Twins for End-to-End Supply Chain Visibility

As supply chains become more complex and volatile, leading manufacturers are turning to digital twins to understand how inventory, capacity and demand behave under different conditions.

• What is a digital twin? - A digital twin is a virtual replica of a physical object, processes or system. Using real-time data, a digital twin will simulate behaviour, track performance, and predict outcomes.

A digital twin integrates data from Enterprise Resource Planning (ERP) systems, inventory, Warehouse Management Systems (WMS) and external sources into a single dynamic model that can be tested and optimised before changes are made in the real world.

According to BGC, digital twins can deliver 20-30% improvements in forecast accuracy and a 50-80% reduction in delays and downtime by allowing companies to see the impact of decisions before implementing them. McKinsley reports that supply chain digital twins are particularly powerful for inventory positioning, forecasting and managing flows within warehouses and factories.  

How can digital twins support smarter inventory decisions?

In inventory management, digital twins can be used to:

• Test new inventory policies – such as safety-stock rules or reorder strategies, and see how they affect service levels, stock turns and cost.  
• Simulate disruptions – such as sudden supplier failure or port closure, to understand where bottlenecks will emerge and how to re-route flows.  
• Optimise inventory placement – across multi-warehouse networks, ensuring the right stock is held in the right location to minimise cost and lead times.  
• Evaluate network changes – Such as adding 3PL partners or nearshoring production- before committing to physical changes.

By combining historical data with live operational feeds, digital twins go beyond traditional forecasting to offer continuous, scenario-based planning that is more responsive to change.

Warehouse automation – both software and hardware-based – is becoming more affordable.

Warehouse automation

Warehouse robots, co-bots and autonomous vehicles are becoming the norm rather than the exception in larger warehouses, raising efficiency in these traditionally labour-dependent environments – and improving worker safety.

Reflecting this shift, the global warehouse automation market was estimated at around $19.2 billion in 2023 and is expected to grow to almost $60 billion by 2030, at a CAGR of nearly 19%.  

Less glamorous, but potentially more cost-effective, are the warehouse management software systems working alongside them. Advanced location tracking features and live capacity tracking for shelves are helping keep warehouse costs down – and fulfilment times low.

• Read more: The Positive Impact of Automation for Employees

AI-Driven Inventory Management Optimisation & Automation

Artificial intelligence (AI) is rapidly reshaping how manufacturers and distributors plan, replenish, and position stock. Instead of relying on manual forecasting and static reorder points, AI-driven systems analyse large volumes of data, including sales and seasonality to promotions, macro events and weather, to make smarter, inventory decisions in real-time.

Research shows that AI-powered forecasting can reduce supply chain forecasting errors by 20-50% and cut lost sales due to stockouts by up to 65%, compared with traditional spreadsheet-based methods. For inventory-heavy businesses, this translates into higher service levels with lower working capital tied up in stock and fewer urgent expediting costs.  

What do AI-driven optimisations look like in practice?

In inventory management, AI is increasingly used to:

• Automated replenishments by adjusting reorder points and order quantities based on demand trends and service-level targets. 
• Optimise inventory mix across channels and warehouses, shifting stock to where it will be most needed. 
• Identify slow-moving products earlier, reducing waste and freeing up capacity 
• Plan “what-if” procedures in case of supplier delays or demand spikes and stress-test inventory strategies.

Why does AI optimisation & automation matter?

With ongoing supply chain volatility and cost pressures, businesses can’t afford to run with either excessive buffer stock or frequent stockouts. AI-driven inventory optimisations help to create balance by continuously learning from real-time data and trends, improving over time as more history is captured.

ESG-Driven Supply Chain Traceability & Compliance Tech

Sustainability has moved from a “nice to have” to a regulatory and commercial necessity. New reporting rules in multiple jurisdictions now require companies to disclose their environmental, social and governance (ESG) impact – including Scope 3 emissions across the value chain. A 2024 Scope 3 report notes that sustainability reporting is becoming mandatory in several regions, and that accounting for value-chain emissions is increasingly required in these frameworks.  

At the same time, consumers are signalling that they’re prepared to back their values with their wallets. PwC’s 2024 global Voice of Consumers survey found that shoppers are willing to pay an average 9.7% price premium for sustainably produced or sourced goods, even amid inflation and cost-of-living pressure. Gartner also reports that 69% of CEOs now view sustainability as a leading business growth opportunity, rather than just a compliance burden.

Why traceability technology is an inventory issue

For inventory and supply chain teams, the shift is creating urgent demand for traceability and ESG data at the item and supplier level. Organisations are implementing digital tools that can:

• Track product and material provenance across multi-tier supplier networks. 
• Capture emissions and ESG data at each step of the supply chain, particularly for Scope 3 categories.  
• Provide auditable records for regulators, customers and investors.  
• Support circular economy initiatives, such as repair, reuse, remanufacture and material recovery. 

MIT Sloan reports that many firms are still struggling to measure and manage Scope 3 emissions accurately, and that adopting the right tools and technologies is key to making progress. For manufacturers and distributors, that often means connecting inventory, procurement and logistics systems to ESG data platforms so that environmental-related attributes are embedded directly into stock and supplier records.   

A great example of a business successfully running an ESG-driven supply chain is Sydney-based coffee roaster Kua Coffee. Kua uses Unleashed software to track all of its reusable packaging, checking it in and out of its warehouse as part of its zero-waste approach to business.

More Resilient Supply Chains

Since the start of the Covid-19 pandemic many businesses have learned their supply chain is not as resilient as they thought. With restrictions on the movement of people and global trade, getting the right goods to the right place at the right time has proved a challenge.

Rather than being a short-term focus, resilience has now become a structural priority. Research shows that around 60% of companies have invested in digital tools to improve resilience in the face of ongoing geopolitical and economic uncertainty. 

We anticipate that supply chain resilience will be a continuing theme throughout 2024, as organisations work their way through rising costs and extra disruptions.

Tips to consider when building supply chain resilience

• Have you mapped out all of your supply chain? Thinking beyond tier 1 and 2 suppliers, but to the entire chain - right up and down. Who is present, what are they at risk of and what risks could they pose to your organisation
• Find alternative suppliers and perhaps negotiate deals so you can start to think more flexibly - able to respond rapidly to a change anywhere in the chain.
• Think about near-shoring - are there local alternatives to your current suppliers who might pose less of risk in the short and mid-term? Local suppliers can also help with building your green credentials, as they will cut your freight needs.

Don’t forget your digital supply chain

Supply chains aren’t just physical anymore – they’re also digital. What software do you use? Who owns it? Is it a cloud-based service? Who is updating it and maintaining its security?

Cybersecurity should be a concern of all organisations concerned about digital supply chain resilience. As you map out the physical supply chain, consider also your business software – think about any risks to those vendors, how reliant you are on their technology, and which services pose the least risk.

Turn Industry Trends into Real Operational Advantages

Unleashed helps manufacturers and distributors optimise stock levels, streamline processes and build resilience with powerful cloud-based inventory tools.

See what Unleashed’s inventory management software can do & start your 14-day free trial.