James Shores delves into how to save time by using inventory management software to automate some of your business processes
Hi, I’m James. Welcome to this Whiteboard Wednesday. Today we’re gonna be talking about spending time.
Now when we talk about spending time often here at Fishbowl we like the idea of how to eliminate redundancies and save you time. But, really, we can’t save time the way that you can save money. We can’t store it away. We need to find the best way to spend that time because it keeps going.
So let’s start with the example of a manufacturing company. This can also apply toward distribution or retail, but just for this example we’re gonna go with manufacturing.
So we’re gonna start with our work order. Obviously there’s a certain product that customer wants, and there’s a process that we have. In this example, there’s gonna be a three-stage process, and along each of these stages there is a time to gather materials, to report on those materials, to make sure that we have everything on hand that we need to move on to the next stage. Now some of these stages may take longer than a day, they may have quite the labor involved.
But let’s say we start with this work order. Obviously we need to make sure that we have the materials required to fulfill this work order and then we get into our first stage of the process. And when we’re finished with that we report on what we used, the time spent, and make sure that we have the materials necessary for the second stage.
We repeat this process again. We get into finishing that stage. Again, we’re reporting on our materials, on the time spent, on making sure we have the raw goods for the next part of the process until we have our finished product here. But we still need to log in our data for inventory used, where this is going, setting up the shipment, and probably reorder points because you’ve used a certain amount of goods. And as we do this every single day we need to keep just enough on hand to do this.
Now this is quite the process. So how do we cut back and spend our time more wisely so we can get to this end result of more product to put out sooner? Well, with an automated system where we’re not having to manually log these points at every turn we can really cut back on the time that we spent.
So that means that as soon as we’re done with the first stage of this process we’re not spending time seeing where the inventory is, if we have enough, logging that information. With a quick barcode scanner, we can boom, boom, have it all logged, be ready for the second stage.
The second stage takes the same amount of time, but as soon as we finish, again, we have a much shorter gap here between the second and third stage because we’re not spending all this time logging materials, finding materials, making sure we have enough on hand. Or hopefully we never have to face the stockout where all of a sudden we realize we don’t have enough to just complete this job.
So, ultimately, our goal is we’re trying to get to this money, this final product, sooner. So with an automated system we can cut right to the chase, eliminate all this time that is spent just logging redundant information because, ultimately, every single day we’re going through this process. We’re trying to fulfill orders, get them out the door, receive in new orders. And so as we shorten the distance here in this time, it means we start sooner. We’re starting to lap ourselves in the old manual way.
Of course, this is an automated process, which in turn just means that down the line we have a much higher revenue while at the same time have cut costs in things that are spent in logging information, in human data error, in trying to take manual inventory. So it’s a win-win situation.
That’s this Whiteboard Wednesday. Thanks for joining us. See you next time.