Manufacturing in general can be a tricky business when you consider inventory and control, however it is a whole other ball game if it is the food and beverage industry because raw ingredients have an expiry date. The company could just incorporate losses due to raw ingredients or inventory expiring into the production costs, however this does not make retail prices competitive and could result in a loss of consumers. A better method of operation is to identify and analyze areas that can be made more efficient in order to reduce the need for inventory write-off as a result of mismanagement. Here are some considerations as to why inventory management software can aid efficient operation.
Inventory management software is helpful for tracking items throughout the production process. This is achievable through the automation and scanning features, which mean at each point in the process and production plant, data or the status of products can be recorded to the same document. Not only is tracking of individual products accurate, but it is also in real-time. Tracking becomes important in many instances, including if a problem with any product is identified as it is then a lot easier to isolate where in the process the problem has occurred and which products or future products will be affected. Of course, this kind of control is of paramount importance to minimize any consumer effects of contaminated product and thereby maintain the company’s stellar reputation.
Meaningful Sales Data from Inventory Management Software
Inventory management systems allow all sales to be recorded simply by scanning the barcode, and from this data, meaningful reports can be generated which are invaluable in predicting trends. Having accurate knowledge of trends and customer demand is essential for predicting upcoming sales and even as a basis for innovation. A company should always endeavor to be innovative and knowing what customers like or dislike in terms of products and flavors is an important springboard for creative, new ideas.
The accurate sales data aforementioned coupled with a good knowledge of suppliers, lead times and inventory receipt and shelf-life, allows for efficient forecasting. This is essential in maintaining a near-perfect balance of inventory in, production, and inventory out in the form of sales. Having these processes in balance should ensure that customer demand is anticipated and met while minimizing losses along the way; and all of these will certainly result in increased revenue, keeping the company looking very healthy indeed!
Room for Expansion
Inventory management software is developed to allow room for growth without problems of bugs occurring in data and files. In the food and beverage industry, growth is inevitable as products do not necessarily go out of fashion or become obsolete such as with the tech industry. In fact, usually popularity is maintained if not enhanced not to mention new flavors being developed concurrently. Due to the automation and easy integration features of inventory software, collating sales data in real-time across product lines and retailers is not a problem in the slightest. This means any company decisions that are made based on sales data can be done so with confidence.
Inventory chews up a massive part of company revenue, and as such it is important to ensure that as much of the inventory as possible is turned into product and sold. Without an efficient system where raw ingredients ordered are stored correctly and used in product long before expiry, and where product is sold with a significant shelf-life, losses can easily occur. Identifying ways of reducing these losses is essential for optimum production and is far easier and accurate with the use of inventory management software. If you are in the food and beverage industry, considering software such as Unleashed will be well worth your dime.