Inventory management entails managing the flow of all materials you, as a manufacturer, need to produce goods. It encompasses everything- from the moment you buy your raw materials and other production components- up to when your finished product is sold and shipped out of your warehouse.
Manufacturing inventory software
Manufacturing inventory software can help you with inventory management by tracking raw materials, inventory items, work-in-process (WIP) items, and finished products. And as you may very well know, proper inventory management is critical in manufacturing, as many processes hinge upon effective inventory management. These include:
- Planning and ordering raw materials and other components
- Warehouse storage and management
- Inventory receipt procedures
- Stock lot tracking
- Stock movement documentation
- Order management
- Order shipment
From production planning to order fulfillment, manufacturing inventory software can help you stay on top of all the moving parts. This type of software is designed to improve cash flow, optimize order processing and delivery, increase productivity, and boost manufacturer profits.
Manufacturing inventory software helps manufacturers streamline their processes and gain real-time visibility into their operations. Unlike old-school inventory management processes, which involved manual counting, encoding data in spreadsheets, and reconciliation, cloud-based manufacturing inventory software not only removes the tedium of manual inventory but also eliminates the possibility of inconsistencies due to human error.
Benefits of using manufacturing inventory software
Leveraging an effective inventory management system for your manufacturing operations offers many benefits:
Cost savings
Storing unsold finished products, overstocking raw materials, and production delays can be costly. Manufacturing inventory software eliminates these costs, by helping you optimize your stock levels through re-ordering alerts or advanced forecasting.
Better customer experience
With effectively managed inventory, you’re always updated on the state of your current stock. This avoids issues, such as customers purchasing out-of-stock products or orders being delayed due to insufficient supply.
More efficient operations
Because it acts as a centralized hub for everything inventory-related, manufacturing inventory software streamlines operations and allows you to manage production processes and workflows more efficiently. Overall, it reduces the need for time-consuming and error-prone manual encoding and reconciliation. Here is an article that goes more in depth on effectively reducing manufacturing waste.
Accurate forecasting based on historical data
Manufacturing inventory software systems also provide data-based insights based on historical data (like past sales and seasonal sales trends). You can then use this data to make smart decisions about production amounts in response to trends, customer demand, and other variables. This prevents understocking and overstocking and ensures you can ship on time and keep customers happy. Read some more of our thoughts creating effective strategies for your inventory that drive customer satisfaction.
Scaling support
Cloud-based manufacturing inventory software is very scalable and can accommodate growth without steep costs. You can scale as needed without additional hardware or manpower costs dedicated to manual inventory management.
Fewer errors and delays
By automating inventory management, you can minimize errors and delays that can occur due to manual input and reconciliation. Automation also helps reduce labor costs associated with manual data entry, order tracking, and other related tasks. We spoke to one of our lean manufacturing experts on how teams can minimize errors and delays by implementing lean manufacturing tactics.
Manufacturing inventory software streamlines your manufacturing operations by providing real-time insights into your inventory levels, allowing you clear visibility throughout the supply chain. And with the help of data-based insights, you can make informed decisions regarding the production process.
If you are interested in learning how Fishbowl’s flexible inventory management solution can help your business now, you can book a demo.