Manufacturers and inventory obviously go hand in hand, it’s not like you can manufacture anything without the necessary parts. However, even with simpler manufacturing jobs, there are a lot of moving parts, and managing the supply chain can become a complex business. It’s one big juggling act, and if you drop one of the balls it can send it all spiraling out of control. However, with inventory management and modern software a lot of the worries of old can be controlled.
Here’s how inventory management can help a manufacturers business performance.
Knowing what’s on hand
On a very simply level inventory management can help you get oversight over what inventory is on hand across every single part and what needs to be ordered. With manufacturing if just one part runs out then the whole process comes to a halt costing your business in a multitude of ways, namely time lost making saleable products. Being on top of your inventory, made easier through inventory management software, allows you to see and get notified to parts that are running low and also see your inventory levels relative to your production schedule.
As well as knowing what inventory is available now for manufacture, inventory management software allows you more accurately forecast what’s coming up. By providing this level of detail, your supply chain management both now and in the future becomes easier and more efficient. You can easily order what you need based on forecasted demand, and as a result make enough products to supply all your customers.
More streamlining from start to finish
By having the ability to accurately forecast, oversee all of your inventory levels and production processes, manufacturers can speed up the time it takes from when they receive raw materials through to the final products and supply. This means that stock is better utilized and not left sitting around, production is more efficient and ultimately customers get their supplied goods in a timely fashion. Not only does this help to reduce costs when it comes to inventory carrying costs, but it also helps to boost customer sentiment about your business as your customers come to trust and rely on you knowing they receive their goods in a quick timeframe.
Another way that you can improve your manufacturing business through inventory management software is through the integrations they now provide with other software. The big advantage here is that you can now integrate and open up your communication with your suppliers and customers so you can easily see when a product is likely to be needed. For example, if a customer of yours gets a peak in sales and needs more stock immediately you could be caught short, as you might not have been expecting another order so soon. With the integration however you can see if any spikes are occurring, kick start your production and automatically restock without any hassles. It helps you manage your supply chain even further, aids your timeliness when supplying goods, and alleviates any disgruntled customers as a result.
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.