Sales, seasonally adjusted for the March 2017 quarter compared with the December 2016 quarter, show that total manufacturing in New Zealand fell 0.3 percent; excluding meat and dairy product manufacturing, sales rose 1.7 percent. Meat and dairy product manufacturing fell 7.8 percent. In light of this, the value of total manufacturing in New Zealand rose 2.8 percent, suggesting that despite production and sales decreasing, value rose excluding meat and dairy product manufacturing, sales rose 3.5 percent, additionally the meat and dairy product manufacturing value rose 1.1 percent.
Getting higher prices for less sales is what we are seeing. But how can you achieve this? It is by utilising lean business models, decreasing wasted resources whilst increasing value to the customer. Demanding more value is a win-win situation for all as this decreases costs while improving revenue. How does a business achieve lean business models? By having powerful manufacturing inventory management systems.
1. Manufacturing in New Zealand is seasonal
Manufacturing in New Zealand goes through peaks and troughs, which of course is not surprising. Powerful inventory management can help forecast costs and revenue. No more do you need to over manufacture, which can lead to all sorts of problems with obsolete and wasted stock, and there is no need to under manufacture which inevitably leads to lost sales. Powerful inventory management systems that enables you to keep a close watch on your markets and forecast these dips and peaks in sales enable better business decisions so you remain profitable.
2. Manufacturing challenges
Help alleviate the challenges the manufacturing industry faces by at least having your manufacturing processes all lined in a row. Powerful inventory management systems help you get organised and stay organised, staying one step ahead of a seasonal market.
3. Lean business models in the manufacturing industry
Lean business models are whereby a business focuses on reducing waste and increasing customer value. One way to achieve this is with powerful inventory management systems, that can pin point your processes and magnify your strengths and weaknesses. From raw materials, to health and safety regulations, if you are not already it is time to get automated. That way you can take advantage of lean business models and get more value for your used resources, which directly positively impacts the bottom line.
4. Inventory management systems
Unleash the power of inventory management systems in manufacturing to yield the value your business deserves. By automating processes, your business could be on a great journey to success especially as you’ll be able to decrease time that could be used on arduous labour intensive processes.
New Zealand manufacturers are experiencing decreasing sales but are adding more value. This is lean business models at their best. They are honing in on resources to get the most out of them, decreasing wastage and increasing value to the end user. If this was not happening we would be seeing a decline in value too. No longer is lower sales correlated with lower value. Powerful inventory management systems will help you achieve these commonly negative notions today.
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.