If there are two words the managing director of any type of manufacturing firm dreads to hear then it surely it has to be “dead inventory”. The best run manufacturing firms all strive for one thing: effective manufacturing inventory management. In SAP Business One, this can be achieved quickly and easily.
Manufacturing firms have enough to focus on without having to worry about what’s going on within its warehouse. The priority will – and should – always be on production. Of course, production and inventory go hand in hand. But the challenge for manufacturing firms is finding the right balance of ensuring production lines run smoothly without wasting cash on excessive or obsolete inventory items that make up production bill of materials.
For most manufacturing firms it’s fair to say they are uncertain of exactly how much dead inventory they’ve got on the shelves in the darkest corners of their warehouse. Which is surprising when you consider how much obsolete inventory costs manufacturing firms. The costs of cash reserves can be eye-watering when calculated accurately and can seriously impact a business’ bottom line.
The goal for any shape or size of manufacturing firm looking to reduce costs and to boost margins has to start by limiting inventory costs. By using a solution like SAP Business One, manufacturing firms can finally find that perfect harmony between supply and demand. Forecasting is done not on rough estimates but by analysing historical data and other elements that can avoid needless spending on unnecessary items.
SAP Business One paints an accurate picture of exactly what’s going on in your warehouse. Real-time data can be accessed at any moment in time. Organisation can forecast different scenarios to make smarter purchasing decisions. Finally, organisations can maintain production outputs without having to over invest in their inventory.
Want more information on how you can reduce inventory costs and streamline production activities? Download our FREE Advanced Manufacturing Software solution guide today and find out about the tools to manage everything from MRP, Quality Control and Advanced Planning and Scheduling.