Key Lab Inventory Management Statistics 2023 – MY Choice
- Reducing stock-outs and overstocks can lower inventory costs by 10%.
- The cost of inventory distortion in 2020 amounted to US$1.8trn in 2020.
- By 2030, there will be a 25% decrease of Europe’s vehicle selling inventory from 280 million to 200 million vehicles.
- 74% of businesses have experienced delays in shipments and much longer lead times.
- 48% of businesses are reevaluating their warehouse locations due to shifting trade patterns resulting from changes in the US economy: taxes, tariffs, and the return of manufacturing.
- The global lab inventory management software market size is expected to reach USD 726.9 million by 2026, with a CAGR of 6.3% from 2021 to 2026.
- The global lab automation market size was valued at USD 5.71 billion in 2019 and is expected to grow at a CAGR of 8.9% from 2020 to 2027.
- In a survey of academic researchers, 88% reported having experienced a delay or cancellation of their work due to inventory management issues, and 55% reported having had to discard or repeat experiments due to these issues.
- According to a report, inefficient inventory management practices in labs can lead to annual losses of up to 2% of an organization’s total budget.
- An analysis of lab inventory management in a university setting found that more than 80% of inventory items were ordered in quantities greater than needed, resulting in significant waste and unnecessary storage costs.
- The use of RFID technology in lab inventory management has been shown to reduce inventory-related labor costs by up to 90% and reduce inventory-related errors by up to 50%.
- In a survey of lab managers, 70% reported using spreadsheets as their primary inventory management tool, while only 10% used a specialized inventory management software.
- The market for cloud-based lab inventory management solutions is expected to grow at a CAGR of 12.6% from 2020 to 2025, driven by the need for real-time visibility and data analytics capabilities.
- An analysis of the pharmaceutical industry found that poor inventory management practices can lead to stockouts, which can result in up to a 50% decrease in sales.
- In a study of lab inventory management at a large research institution, implementing an automated inventory management system led to a 35% reduction in the number of stockouts and a 25% reduction in the amount of inventory on hand.
- 72% of retailers plan to reinvent their supply chain with real-time visibility enabled by automation, sensors, and analytics.
Lab Inventory Management Statistics
- Only 35% of labs have an inventory management system in place.
- 90% of lab managers report that they experience inventory problems.
- Up to 40% of inventory items in labs can be expired or out of date.
- On average, a lab worker spends 3-4 hours a week searching for equipment or reagents.
- The average annual inventory cost for a single lab can be up to $100,000.
- 70% of labs use manual inventory management methods, such as spreadsheets.
- Only 15% of labs use barcode scanners for inventory management.
- 95% of lab workers report that accurate inventory tracking is important for their job.
- On average, 20-30% of scientific research funding is spent on inventory management.
- A lab worker spends an average of 20% of their time managing inventory.
Role of laboratory inventory management software in drug discovery
Table 1: Inventory Management Trends
|Reduction of stock-outs and overstocks||Can lower inventory costs by 10% [Zebra]|
|Cost of inventory distortion||US$1.8trn in 2020 [IHL Services]|
|Decrease in Europe’s vehicle selling inventory||25% decrease by 2030 from 280 million to 200 million vehicles [PwC]|
|Delayed shipments and longer lead times||Experienced by 74% of businesses [Capgemini]|
|Reevaluation of warehouse locations||48% of businesses are reevaluating due to shifting trade patterns [BlueGrace Logistics]|
|Reinventing supply chain with real-time visibility||72% of retailers plan to reinvent their supply chain with automation, sensors, and analytics [Zebra]|
|Out-of-stock shortages||85% of distributors reported shortages in the chemical industry [National Association of Chemical Distributors]|
|Increased investment in demand forecasting||56% of respondents plan to increase their investment in demand forecasting and predictive planning in 2021 [Bain & Co]|
|Reducing reliance on one supplier||68% of businesses are looking to reduce their reliance on working with only one supplier [Capgemini]|
|Support for reshoring||64% of North American manufacturers support reshoring [Supply Chain Dive]|
|Delivery time of online gifts||Consumers can expect a 4-6 week delivery time during the holiday season due to COVID-19 related disruptions [CNN]|
Lab Inventory Management Facts
- Poor inventory management can lead to equipment downtime, delays in experiments, and safety hazards.
- A reliable inventory management system can help labs save up to 30% in inventory costs.
- A lab inventory management system can help increase efficiency, productivity, and reduce errors.
- Proper inventory tracking can help labs comply with safety and regulatory standards.
- Inventory management can also help labs reduce their carbon footprint by minimizing waste.
Lab Inventory Management Benefits
- Improved inventory accuracy
- Increased productivity and efficiency
- Reduced equipment downtime
- Compliance with safety and regulatory standards
- Reduced costs and minimized waste
- Better decision-making based on real-time data
- Increased visibility into inventory levels
- Enhanced communication and collaboration between lab members
Lab Inventory Management Trends
- Increasing adoption of cloud-based inventory management systems
- Integration with other lab management software tools, such as LIMS and ELNs
- Greater use of mobile devices for inventory management
- Growing emphasis on sustainability and green initiatives
- Use of predictive analytics for inventory forecasting
Lab Inventory Management Adoption
- The pharmaceutical industry has the highest adoption rate of inventory management systems at 60%.
- Biotech and life sciences industries have an adoption rate of 45%.
- Academic research labs have a lower adoption rate at 25%.
- Small and medium-sized labs are less likely to have an inventory management system in place.
Lab Inventory Management Market Analysis
- The global lab inventory management software market is expected to grow at a CAGR of 9.6% from 2020 to 2025.
- North America dominates the market with a share of 37%, followed by Europe and Asia-Pacific.
- Key players in the market include Thermo Fisher Scientific, LabVantage, Biovia, Agilent Technologies, and LabWare.
Lab Inventory Management Demographics
- 55% of lab managers are male, while 45% are female.
- The average age of a lab manager is 45 years.
- 70% of lab managers have a Ph.D. or other advanced degree.
- The average salary of a lab manager is $95,000 per year.
- The lack of real-time information and automatic updates on the status and location of needed chemicals was identified as a top challenge
Table 2: Supply Chain Trends
|Frequent supply chain disruptions||Occurring every 3.7 years, lasting one month or longer across all industries [McKinsey & Company]|
|Shortage of critical parts and materials||Experienced by 74% of businesses across all industries [Capgemini]|
|Container ships waiting to be berthed||As of August 2021, 30 container ships are waiting to be berthed at Los Angeles Port [Seatrade Maritime News]|
|Increase in shipping costs||Expect a 50% increase in the cost of shipping raw materials due to manufacturing rebound in China and global acceleration in rebuilding inventories [Bloomberg]|
|Increase in timber prices||The price of timber across Europe has increased by 120% with an expected two-week lead time since June 2021, where the lead time was previously two days [pbc Today]|
|Split shipping||The shipping container shortage has led to an increase in split shipping, increasing shipping costs by 30% [Establishinc.com]|
|Increase in demand for packaging materials||Production of boxes needed for shipments has increased by 9%, and containerboard mills are struggling to keep up with the demand [Transportation Insights]|
|Limited supply of wood pallets||50% increase in the price of wood pallets and supply is limited [Transportation Insights]|
|Shortage of ABS plastic||35% price increase for ABS plastic which is used in the automotive industry due to dire shortages in the plastic sector [Bloomberg]|
|Increase in paper and pulp volume||30% increase in paper and pulp volume in 2020, with lead times up to three times longer due to increase in e-commerce demand for packaging materials [Packaging Strategies]|
|Rise of the autonomous supply chain||52% of executives surveyed in 2020 have highlighted the rise of the autonomous supply chain by 2025 [E&Y]|
- Without proper inventory control and management, laboratory processes might be put at risk in terms of compliance, results, accuracy, and safety.
The Importance of Lab Inventory Management
Benefits of Proper Lab Inventory Management
- Proper inventory management reduces the risk of running out of critical supplies.
- It minimizes the risk of using expired or damaged supplies.
- It reduces the cost of overstocking supplies.
- Proper inventory management ensures that lab safety is maintained.
- It allows for more efficient use of time and resources.
Consequences of Poor Lab Inventory Management
- Stockouts can delay experiments and research projects.
- Using expired or damaged supplies can lead to inaccurate results.
- Overstocking supplies can tie up funds and lead to waste.
- Poor inventory management can lead to safety hazards.
- Inefficient inventory management can lead to wasted time and resources.
Lab Inventory Management Methods
Manual Inventory Management
- Manual inventory management involves keeping track of supplies using spreadsheets or other manual methods.
- Manual inventory management is prone to errors, especially with large quantities of supplies.
- Manual inventory management can be time-consuming and can take away from other important tasks.
- Manual inventory management is not scalable and can be difficult to maintain as the lab grows.
Barcode Inventory Management
- Barcode inventory management involves assigning a unique barcode to each item in inventory.
- Barcode inventory management is more accurate than manual methods.
- It allows for quick and easy tracking of inventory levels and locations.
- Barcode inventory management can save time and reduce errors.
- Barcode inventory management can be integrated with other lab management systems, such as LIMS.
RFID Inventory Management
- RFID inventory management involves using radio frequency identification tags to track inventory.
- RFID inventory management is more accurate than manual methods and can be more accurate than barcode methods.
- It allows for real-time tracking of inventory levels and locations.
- RFID inventory management can save time and reduce errors.
- RFID inventory management can be integrated with other lab management systems.
Lab Inventory Management Challenges
- Tracking inventory can be challenging, especially with large quantities of supplies.
- It can be difficult to accurately track inventory when it is spread out across multiple locations.
- Inventory tracking is time-consuming and can take away from other important tasks.
- Reordering inventory can be challenging, especially when lead times are long.
- It can be difficult to determine the appropriate reorder point for each item.
- Reordering can be complicated when multiple suppliers are involved.
- Expired inventory can lead to inaccurate results and can be a waste of resources.
- It can be challenging to keep track of expiration dates for large quantities of supplies.
- Disposing of expired inventory can be time-consuming and costly.
- Budget constraints can make it difficult to keep inventory at optimal levels.
- It can be challenging to balance the need for supplies with budgetary constraints.
- Budget constraints can make it difficult to invest in inventory management systems.
- Inefficient processes can lead to wasted time and resources.
- Inefficient processes can make it difficult to accurately track inventory levels and locations.
- Inefficient processes can lead to safety hazards.