The way we do business is rapidly changing. Technology is shifting the way companies are producing products, interacting with customers and communicating with their staff. The amount of information and data available and exchanged across a business is expansive. Managing all this data is imperative to a business. Losing this data could be a business’s demise. So, what’s the best way to deal with all this data? Currently, businesses are leveraging cloud-based platforms to make the fundamentals of a business run more efficiently.
Cloud-based management systems are advantageous to a diverse range of business applications. The manufacturing industry is realising the benefits of the cloud when it is applied to the management of their manufacturing inventory.
One of the best features of cloud-based platforms is the ability to provide real-time data on information in a business. For the manufacturing industry, this yields a wealth of instant knowledge about their manufacturing inventory. It allows for tracking of inventory levels to be transparent and up-to-date. It can also highlight what areas of the manufacturing process are lagging. Each department’s production levels can be shown and efficiency can be tracked in real-time.
Since information is taken constantly, rather than at the beginning or end of a day, it can be identified when raw materials are running low. Not only can the cloud-based inventory system let the manufacturers know about low levels, but it can also be automated to re-order that specific raw material. This system increases productivity for manufacturers through simple real-time data from the cloud.
Scaling Up or Down
Manufacturers produce goods based on supply and demand forecasts. Depending on these forecasts, cloud-based systems can allow for manufacturing projects to be scaled up or scaled down. A cloud platform can communicate to suppliers about changes to order shipments in response to a workload that has grown. If demand is decreasing, manufacturing inventory levels can be tracked and production can be slowed down to leave optimum inventory levels at the warehouse.
Decrease in Spending
Cloud-based solutions are not only good for productivity, but also the bottom line. From a financial perspective, a cloud platform can eliminate copious amounts of IT spending. With any business, including the manufacturing industry, IT costs can be a huge expense. Not only do you have the basic infrastructure like computers, networking hardware and antiquated enterprise resource planning (ERP) software, but the maintenance of these systems as well. Cloud-based systems are more streamlined and simplified solutions, costing less than other alternatives, such as ERP systems.
Increased Storage Capability
It is undeniable that the cloud can yield a large amount of data. Fortunately, it has an equally capable of storing it all. Information from all over the business can be stored and accessed with ease. Large amounts of storage capability mean that data can be stored for long periods of time. This data can be very efficacious in business planning. For example, a manufacturer may want to forecast for the holiday season and can swiftly look back at demand from previous seasons to aid their forecast.
As a result of cloud-based systems, manufacturers have a better insight into the functionality of different departments across their business. It encourages improvements by highlighting gaps in the manufacturing process and can enhance productivity with real-time information and large scale data management.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.