Inventory Management for Manufacturers
- On September 9, 2020
- 0 Comments
- Inventory, manufacturing
Inventory Management Software Provides Your Business Realtime Visibility. Now Your Manufacturing Company Knows Exactly How Many Products Are Available at Any Given Time.
A bakery makes cakes, bread, and confections. Flour, a chief ingredient in all bakery recipes is something they cannot afford to run out of. If a customer comes in and places an order but the bakery can’t fulfill the order because it is out of flour, the bakery loses business and revenue.
Effective Inventory Management
Efficient inventory management is essential to the success of any manufacturing business, whether one sells baked goods or footwear. Your inventory is what brings in profit and important to know what is sold, what one discounted (clearance sales, discontinued items, etc.), and how much is on hand. The cost of goods is an income statement showing the total value of your inventory sold in a certain month or period.
Cost accounting is made easier by inventory control. By maintaining a certain amount of stock at times when it is in high demand one build trust and confidence with your customers because they can always count on one to have what they need when they need it. If one has a customer that routinely makes a large order every 6 months, one will make sure to have the amount they usually order put aside for the time when one knows they will be ordering. The customer is happy knowing he can count on one to have the stock when it comes time to order.
Still using Spreadsheets?
No matter how big or small your business is, it’s hard to keep track of the day-to-day activities without a dedicated system for managing it all. After all, inventory is the heart of your business, without stock one can’t make sales or deliver products to the customers that need them. If one manages your inventory wisely, it is a deciding factor of whether your business will be a success. Managing your inventory, tracking invoices, and processing customer payments is paramount to a successful operation.
Inventory Management Software for Manufacturers
Inventory management software can help one reduce discrepancies, keep track of inventory, and improve your cash flow. The purpose of Inventory management is to fulfill your customers’ needs in the most cost-effective way. It allows one to control the cost of operations and keep it within specified parameters. Knowing how many units of product one has on hand, and what is in your warehouse reserves, can keep the orders flowing smoothly and keep your business in the black.
The Benefits of Using Inventory Management for Manufacturing
|1. More accurate inventory counts||5. Improved customer/vendor relations|
|2. Improved productivity||6. Better business forecasting|
|3. Cost-effective data reporting||7. Improved scheduling and shop loading|
|4. Avoidance of excess stock or not enough||8. Improved record-keeping accuracy for better inventory management|
SAP Business One for Inventory Management
SAP Business One is one such inventory management system that can help one achieve all the benefits listed above. Reduce overproduction, operating costs, and speed the flow of data to provide an accurate picture of what one has in stock to fulfil orders at any given time.
If someone were to ask one how much one made in sales last quarter, would one know off the top of your head? Or would one have to ask your Chief of Operations to locate quarterly reports? Determining your profits for the quarter is determined by how much stock one started with, how much was sold during the last 4 months, and having all the prices listed by unit sold. Automation can solve many problems when it comes to inventory tracking.
Many businesses rely on inventory management software to help them stay on the fast track and ahead of the competition. Managing inventory is important for any type of business, but especially so for retail businesses. Inventory management for manufacturing makes the business of doing business a lot easier.
Inventory management software like SAP Business One can help one organize your data, improve the accuracy of inventory reports, and speed the process of filling orders for timely delivery. A disorganized system is poorly run and can end up in loss of revenue if stock is not available.
With SAP Business One, one can check the status of goods that are running low and re-order to stay running at maximum efficiency. It continuously monitors the stock on hand and reduces the chances of delay in order processing by staying ahead of the game. A system like this integrates with your warehouse management software and works seamlessly to provide complete inventory traceability for manufacturing.
If one don’t know how to analyze your data for forecasting and following trends, automation can take care of this task for one by collecting and storing this data for use later. This data is used to determine product demand, consumers shopping habits, and expected changes in the market. It is well worth the cost to have a system that works so well without having to pay inventory auditors to count your stock and update the records.
There are many good inventory management systems out there but SAP Business One is a leader in manufacturing inventory traceability and management. Manufacturers choose SAP Business One for accountability, traceability, and ease of integration.
READ HOW ANDARI FASHION MOVED OFF SPREADSHEETS & ONTO SAP BUSINESS ONE