One of the biggest dangers a business will face won’t come from its competitors. It won’t come from the economy. It will come from inside, and that’s the danger of doing things the way they’ve always been done. Your organization may have progressed from an all paper operation to a few desktop computers to laptops, but if you’re not keeping track of day-to-day operations at the speed of business, you’re only causing yourself harm. If your systems have not kept pace with the growth of your business, you could be losing both business and money.
Business Automation and Software Blog
Topics: inventory control
Let’s face it—as time goes on, it becomes harder to keep your warehouse as organized and efficient as you would like. The longer you’ve been in business, the harder it most likely seems to keep your warehouse flowing smoothly and efficiently. To improve warehouse efficiency and inventory control, companies must re-evaluate their processes and procedures. Bin locations that increase workload and picking methods that are not industry appropriate is just one example of how a company’s efficiency may be decreased by their current processes. But, you’re not on your own: Plenty of resources exist—such as inventory management software to track, manage, and organize product sales, material purchases, and other production processes—to get you on track. Check out these helpful steps to organize your warehouse properly and, ultimately, improve warehouse efficiency.
In most manufacturing and distribution companies, inventory is the largest component of business capital. When 45 to 90 percent of your capital is tied up in inventory, every improvement you can make in your warehouse practices has a large impact. The more you can take control of your inventory costs, the more you can invest in other products or even expand operations.
Enterprise resource planning (ERP) systems are equipped with various tools that can be used for analysis, forecasting, and management. Taking advantage of the various tools available can greatly increase profitability and efficiency with your company. Let’s take a look at several ways to fully utilize ERP tools to increase the effectiveness of your ERP.
Harnessing the power of big data can contribute greatly to your success. It’s not enough to rely on your enterprise resource planning software to manage inventory. You can also benefit from its additional tools and abilities to analyze and report information that can then be used to improve processes and efficiencies resulting in significant savings of time and money.
Typically, inventory is one of the largest numbers on the balance sheet. Having effective inventory management is an important aspect of achieving success for distribution and manufacturing companies. Let’s take a closer look at three ways to improve the inventory management process.
Taking advantage of the many uses of your enterprise resource planning software can assist in simplifying inventory management and take some of the guesswork out of ordering and managing your warehouse. Armed with these tools, you can maximize productivity and efficiency.
Warehouses of all sizes and in all industries can benefit from improving the management of information in the entire production cycle. You will need to transition from fragmented manufacturing operations to a fully integrated value chain to drive improvements from manufacturing all the way through to warehouse and inventory management. In order to maximize your manufacturing efficiency and not over or under produce, you’ll need a warehouse management system to house what is manufactured and to keep track of what it contains.
If we asked you what your top inventory challenges are today, could you identify them? Do you know what inventory-related issues are putting the most strain on your company? If not, you’re putting your company at risk. Poor inventory management can have a direct impact on your company’s profitability, customer service, and productivity; therefore, having insight into your inventory levels is crucial. Without it, you have no way of identifying your top inventory issues and risk fixing things that aren’t even broken.
The pressure to reduce inventory and inventory-driven costs is being felt by manufacturing companies across the globe. Supply chains are becoming harder to manage, and the effects of globalization are being felt by both manufacturing and distribution companies alike. The pressure from consumers for companies to always have products in stock is beginning to take a heavy toll on manufacturing companies. Due to the increasing demand for product availability, manufacturers and distributors are upgrading their stock-keeping policies and rolling out new product introductions to keep up with the ever-increasing demand. As a result, many companies are looking to implement inventory management strategies (as well as inventory management software) designed to reduce costs and improve inventory efficiency.
Topics: inventory control