A food manufacturer typically stores inventory stock in a warehouse before shipping them to customers. Inventory stock management is therefore vital to food manufacturers because of the large amounts of inventory stock typically stored. Large amounts of inventory increase inventory costs and management costs, and can reduce warehouse efficiency, therefore inventory stock management should be a primary focus for food manufacturers. Successful monitoring and management of inventory stock will cut waste and improve efficiency.
By using an inventory management system for food manufacturing key elements are identified and factored into calculations. You can therefore eliminate guesswork and the potential of human user input error, and food manufacturers can accurately balance expenditures and introduce visibility into their food manufacturing business.
Batch tracking inventory stock
Complementary to predictive costing is batch tracking. This is the ability to track every ingredient and component involved in the creation and distribution of food items. Batch tracking provides insight into where key ingredients originated, when they were collected or harvested, and when they were shipped to your warehouse.
Too much of one component can mean wasted product and floor space and is risky for perishable food items; too little signals lost sales opportunities. Both of these are detrimental to the bottom line. Leveraging the powerful batch-tracking capabilities of inventory management software alleviates these issues, allowing food manufacturers to stock precisely the amount of food required now, while accounting for seasonal sales trends to prepare for peaks and dips in demand. Batch tracking can also be beneficial for food manufacturers should a product recall happen.
Supply chain cooperation
In order to increase cohesion throughout the various parts of a supply chain, producers should ensure the rapid and straightforward transfer of data between supply partners. This is aided by modern technology, which allows for online collaboration with smaller business partners. By providing access to food manufacturers information with real-time insights about manufacturing procedures and costs, producers can get an understanding of production activities, capacity loadings, shop floor activity, and production expenses. Additionally, by tracking products throughout the entire production process, producers can implement efficient recall methods with forward and backward traceability.
Customer support and traceability
By improving customer support and traceability food manufacturers can strengthen customer support by being able to trace raw products from the field to the distribution warehouse and vice-versa. Implementing a high level of traceability ensures that all product inputs can be carefully monitored, lowering the risk of safety and regulatory issues.
Keeping up with your food manufacturing business growth
One of the major considerations when considering an inventory stock management system for your food manufacturing business is whether that system can continue to grow along with your company. As the user’s needs become more complex or diverse, can the software keep up to meet new requirements? Faced with the factors of an evolving industry and shifting consumer preferences, food manufacturers can implement best practices and new technology to improve efficiency and increase profitability. Implementing a great inventory stock management system is therefore important for success and growth for food manufacturers.