September 19th 2023 11:00:00 AM
Why You Need a Production Inventory System
November 26th 2019 16:00:00 PM
It doesn’t matter what type of product your business is manufacturing; if you don’t have an effective system in place to manage your inventory, there are going to be problems. Some companies are trying to track their stock manually, using spreadsheets. This method is inefficient and has a high likelihood of human error. Accurate data is essential to your company’s success. A production inventory system is a good way to keep orders flowing and customer satisfaction rates high.
Would you like to move away from spreadsheets and manual data entry to an automated production inventory system now? Just contact us online or call (330) 645-9959 to set up an appointment with a Scanco Solutions Expert.
Importance of Production Inventory
Production inventory is the level of raw materials kept on hand for use in manufacturing. Ideally, you want to keep your production inventory at an optimum level for your business. Investing too much in raw materials, unless there are orders to fill (or a reasonable likelihood of upcoming orders), means the company is sitting on cash it can’t spend.
If production inventory levels become too low, it becomes challenging to meet demands for rush orders and new business. Your company may have to acquire more materials from a different supplier at a higher cost or pay more for shipping due to time constraints. Neither of these options helps your profit margin.
Automated Production Inventory System Saves Time, Increases Efficiency
Once an automated production inventory system is put in place, manual data entry becomes a thing of the past. There won’t be any more lag time waiting for inventory data or having to send an employee to do visual checks on inventory to confirm whether an order can be completed on time.
Instead, you’ll be able to access accurate production inventory levels in real time. Ordering becomes more of a science than an art, as you will be making decisions based on exact figures you have on hand. More accurate data makes communicating delivery dates for finished goods to sales representatives and customers more accurate. Increased customer satisfaction is sure to follow, leading to more sales and repeat orders.
Scanco Manufacturing Solutions for Your Business
Scanco Manufacturing 100 is an excellent tool to help you increase efficiency in your manufacturing business. Instead of having your team members writing down information manually, Manufacturing 100 allows them to scan it instead, saving time and increasing accuracy.
Scanco Multi-Bin for Manufacturing is available as an add-on to Sage 100 Manufacturing. Multi-Bin gives you the advantage of real-time inventory allocations. Reserve or allocate raw materials directly from the time of arrival at your facility through the manufacturing process to shipping and invoicing.
Multi-Bin also tracks expiration dates for raw materials by product lot, if required. You can then ensure your production inventory is being rotated so the last batch in is the first batch out for new orders. This is a much better option than having to dispose of inventory because it was past its expiration date and it was overlooked in the warehouse.
Your manufacturing business has its triumphs and challenges. Scanco wants to work with you to develop a custom solution that will fit your company’s needs. If you would like to discuss a production inventory system or just have questions about automation, contact us online or call (330) 645-9959 to set up an appointment with a Scanco Solutions Expert.