February 20th 2024 11:00:00 AM
Choose the Right Manufacturing Inventory Software and Lower Costs
February 4th 2020 16:00:00 PM
Inventory is one of the most substantial investments made by any manufacturer. When you make smart inventory management decisions, you can maximize your profits and make a difference between a business with a healthy balance sheet and one that is struggling. The right manufacturing inventory software is a valuable tool that can make a difference.
Ready to add inventory software to your manufacturing ERP? Reach out to us online or call (330) 645-9959 now to set an appointment with a Scanco Solutions Expert.
5 Ways to Keep Inventory Costs Down
- Make a Plan for Lowering Costs: If you want to make keeping inventory costs low a priority, then start by communicating this to your team. Everyone on your team should be aware that your goal is to avoid carrying excess inventory.
- Avoid Minimum Orders: Some suppliers will only ship orders if a customer agrees to a minimum order quantity. In many instances, the supplier will offer some type of incentive if their customer agrees to the minimum amount. “Buy 50 of X product and receive Y more of the product at no cost.” While this may seem like a good deal on the face of it, you have to take an additional 10 pieces of that supplier’s product. Now you have to store them until you use them. It may not end up being all that advantageous after all. If possible, try to negotiate a different deal where you can buy only the amount of product you need, irrespective of the supplier’s minimum order quantity.
- Organize Your Warehouse for Maximum Efficiency: The key to organizing your warehouse efficiently is to place materials that are used often at the front of the warehouse so that they are easy to access. Keep materials that are used together in bins that are close to each other to increase efficiency for production runs and to lower the risk of misplaced or lost inventory.
- Minimize Storage Costs: You don’t want excess inventory (raw materials and supplies) sitting in your warehouse waiting to fill orders. Work with suppliers who you can trust to deliver materials quickly as part of their regular schedule, so you aren’t stuck having to place special orders as often for “rush” jobs.
- Use Manufacturing Inventory Software: Manufacturing inventory software allows you to plan and manage your production activities. It takes the human factor out of managing inventory, making this part of your business more accurate and efficient.
By automating inventory, it is easier to monitor and manage orders, which includes purchasing, sales, and invoicing. All these functions can be controlled by the software. Inventory can be tracked using barcode scanners instead of taking the time to use physical counts, and changes to materials levels are updated in real-time.
MFG100 for Sage Automates Your Shop Floor to Save Money
When you choose the MFG100 for Sage mobile app from Scanco, you are getting a powerful solution that works literally at your team’s fingertips. Manual counting tasks are eliminated, since they can simply scan barcodes instead of writing down information manually. This method is slow, wasteful, and costly.
MFG100 for Sage gives you access to the updated information in real-time, allowing you to have accurate information about raw materials on hand. Armed with reliable information, you can complete more jobs in less time, ship orders more efficiently and keep customer satisfaction rates high.