February 20th 2024 11:00:00 AM
Common Problems Manufacturers Face and How a Production Inventory System Can Help
December 17th 2019 16:00:00 PM
In the early days of your manufacturing business, you no doubt put in long hours to make your initial idea a reality. As sales levels increased, you realized the hard work was starting to pay off. Around this time, the level of inventory you have to carry to keep up with orders likely took a jump as well. You may also be running into some common problems which are clear signs it may be time to consider a production inventory system.
If you would like to discuss how a production inventory system can help your manufacturing business, simply contact us online or call (330) 645-9959 to schedule an appointment with a Scanco Solutions Expert.
Inventory Problems Manufacturers Face
When your manufacturing business was in start-up mode, you may have been able to manage your inventory with a spreadsheet. As it grows and you take on more orders, it becomes more important to be able to access accurate inventory data for delivery confirmation, job run scheduling, equipment maintenance, and more. Listed below are some common issues related to inventory management.
- Too Much Inventory is Being Kept On Hand
If you’re being kept busy filling orders, it may not seem that important if you have a lot of inventory on hand. The inventory represents cash you have already spent as long as it sits on warehouse shelves.
- Inventory Shortages Lead to Production Slowdown
The opposite problem of having inventory sitting in your warehouse for too long is running your operation where it’s too “lean” and you’re running out of inventory regularly.
You may need to locate fresh materials quickly and pay higher-than-usual rates. Shipping rates will likely be higher, too, and your profit margin suffers.
- Difficulty Projecting Inventory Needs
Unless inventory levels are being closely monitored, it will be very difficult to keep track of how much material is coming and going into your facility. Some reductions may fall through the cracks. Anticipating future needs becomes even more challenging.
How a Production Inventory System Can Help
A production inventory system tracks your materials and supplies which are on hand and available for manufacturing production. It provides valuable data that simplifies the tasks associated with managing inventory. Other examples of how this type of system can benefit your company are:
- Faster Inventory Counts
Tasks related to tracking inventory used to involve employees performing manual counts and writing down information. This was time-consuming and had plenty of potential for human error. By incorporating mobile scanning and automation, manual data entry is eliminated and accurate data is available on demand.
- Less Likelihood of Getting Stuck with Overstocks
No business owner wants to end up with too much inventory sitting waiting to be turned into work in progress. The key to gaining control over it is being able to track it accurately. A production inventory system will provide accurate numbers to lower the risk of overstocks and streamline the ordering process.
- More Accurate Job Scheduling
Once inventory numbers are accurate, then scheduling becomes easier. You know exactly how much inventory is available for upcoming orders and when you need to place your regular orders. The data can be used to determine whether your facility can accommodate rush jobs when they come up and set reasonable delivery dates.
Scanco Manufacturing 100 Was Built with You in Mind
Scanco Manufacturing 100 is the new barcode data collection system for Sage MFG 100. Scanning takes only a fraction of the time it takes to manually enter data. This production inventory system has you covered by keeping track of materials and allowing you to complete jobs more efficiently and get them to your customers quickly. The likelihood of repeat orders increases and your business growth meets (or exceeds) projections.
Taking the next step to get a custom Scanco solution for your business is easy. You just contact us online or call (330) 645-9959 to arrange an appointment with a Scanco Solutions Expert.