Inventory Management Software Is Crucial For Companies That Manufacture Products

Inventory management software is going to be valuable to different types of businesses for different reasons. What’s being focused on in this article are those businesses that not only carry inventory, but also use it to manufacture the end product.

These companies may have several ways of running things, but these methods can be outdated and be costing them a lot in the long run.

You see a company that also has to manufacture their products is in a much more vulnerable position than a company that holds a completed product. A manufacturer will need to make sure they have all the needed materials in order to do this.

This is going to include raw materials, components, as well as subassemblies. At all times they will need to have the right amount of each individual component.

Bad inventory management means running out of components at critical times, because running out of even one of these components can have very negative results. The main one being it is going to prevent a business from being able to create the products they need in order to supply other businesses or customers.

Only when companies have all the components they need will they be able to finish manufacturing their goods. Inventory management software will make sure businesses are never put in this position.

There are other additional benefits to having inventory management software for a businesses that manufacture products. Usually several machines are used in the manufacturing process.

Each one of these machines can deal in a different phase of the manufacturing process. These machines cost a lot of money to maintain and in order to achieve maximum efficiency they must be kept running during certain times.

If one part is missing from the manufacturing process this means the entire operation is going to be shut down. No further production can take place. The downtime it is going to take to get these products on hand can seriously impact the overall profitability of the business. This is also going to hurt any supplier or big client who is dependent upon them.

Not having this inventory software can mean you develop a bad reputation in the long run and the last thing any business wants is to develop a reputation for not being dependable and reliable when it comes to supplying needed materials and or finished products.

Odds are clients would choose to go elsewhere and it will be extremely hard for any manufacturer to survive taking such losses. Inventory management software allows you to set up an inventory management system so you always know you have needed materials on hand.

The right tools at the manufacturing level are more important than any other level because at the manufacturing level inventory management is probably the most important.

This is going to prove to be very pivotal that every step that can be taken is taken. Not having an effective system in place has a domino effect. Inventory management software makes everything much easier and protects you against possible future problems.

In the end, a company that has to manufacture products and is dependent upon an assortment of products must make sure they have more than enough on hand. Any outdated method of ensuring this opens the door for errors that can have disastrous consequences.

The right inventory management software allows a company to set up an effective warehouse management system that will minimize if not completely eliminate these occurrences.

Suppliers and customers will always get their needs met and a manufacturer’s reputation will not be hurt as a result.

Logistics Software Provides Companies With Freight Optimization

In the manufacturing industry, the discipline of logistics focuses on efficiently moving products from the manufacturer to the buyer. For large manufacturers, logistical operations can represent a large expense, especially when logistical elements are managed separately instead of being integrated into one solution. In an attempt to take the time and guesswork of out executing logistics, many companies totally or partially outsource their freight optimization needs to third parties. A complete outsourcing amounts to hiring a company to move products throughout the entire supply chain, while a partial outsourcing involves letting a third party manage the transportation of goods through the “stages” of the supply chain. However, implementing logistics software is a more cost effective way to achieve freight optimization that offers the same level of quality as a third party logistics provider.

There are several factors that contribute to a manufacturer’s total shipping costs, including warehouse fees, inventory fees and freight carriage fees. To minimize these fees, a manufacturer might choose to ship by air carrier instead of in tandem with freight carriage, significantly reducing warehouse fees by moving the goods from manufacturer to buyer in a matter of hours. However, to save the most money, companies have to examine all three cost areas with an eye toward developing an integrated cost savings solution. In developing such a solution, there are two basic issues that manufacturers must address: finding the right mix of freight carriage, inventory and warehouse services and finding the best price for each one.

Logistics software can help by providing an analysis of service combinations in relation to individual service cost. For small to midsize companies that deliver goods from the assembly line directly to retail outlets, logistics software can offer a basic analysis of routing options and freight rates. But companies that use multiple warehouses and multiple supply chain locations may require more, such as production scheduling analysis that develops manufacturing plans with regard to multiple supply chain locations (i.e. company’s whose products are assembled at more than one location before reaching the retailer).

The basic advantage of logistics software is that offers refined shipping solutions that meet the needs of a variety of manufacturing situations (and does so at a lower cost than hiring a third party logistics provider). For example, some solutions may focus on a particular freight carriage issue, such as analyzing how to increase delivery time by studying construction schedules and highway traffic data, while other solutions may focus on offering an integrated solution for all logistical concerns, including carrier loading, weight distribution, cube optimization and shortest path to destination. Studies show that manufacturer’s who implement logistics software regularly realize a 10 percent decrease in shipping costs after the first year.

Whether your company has its own trucking system or uses a third party, logistics software can help reduce your delivery costs without compromising punctuality, efficiency or freight safety. If you need to simplify your delivery process and reduce your cost of shipping, consulting with a logistics software provider is the best way to arrive at a solution that accomplishes both at the same time.

Warehouse Management Software Vs Inventory Management Software

But do what does your company really need? A fully-fledged custom warehouse management system can track everything from stock location, warehouse activity monitoring and user activity tracking, whereas asset management software is more focused on managing assets and/or inventory through a barcoding system. Warehouse management software and asset management software can be a great way to keep track of your assets and inventory, but it all begins with assessing your needs and requirements.

Warehouse Management Software

As the name suggests, warehouse management software encompasses a large part of your logistics operation, from tracking products from your suppliers, its storage and user interaction to its final destination. This process is accurately and closely monitored by a bar code scanning system that can identify products and receipts that need to be logged and eventually tracked from the warehouse management system itself.

If your business is involved with the delivery stage of the product, consider an automated service where the delivery route is planned according to multiple delivery points in any given delivery service. This will typically be implemented when goods are picked for delivery, a real time saver since loading personnel will first of all be able to choose the correct stock that will be selected on a certain day and then locate the stock according to its inventoried state.

As you can see, it’s a highly integrated approach that relies on correct user input and reliable software that will bridge each stage of development. Of course, this centrally managed warehouse system is even more valuable when you have multiple warehouses. As a result, web-based warehouse software is a much more attractive option in that different warehouses can store and retrieve information based on real-time inventory information – especially effective when you can synchronize data with existing products, such as Sage or QuickBooks.

Inventory Management Software

Where warehouse management is (usually) a seamless mesh of integration, an asset management system controls just one aspect of logistics – the assets (and inventory) of your business. A bar code scanner will usually be the interface of choice for most companies, although this is set to change with the advent of RFID tagging. Either way, stock or assets are managed through a central system much like warehouse management software and can be tracked at their different stages in the supply chain.

Wasp Barcode, the bar code scanning company, distinguishes assets as products which are used by the company and may need to track their assets based on who has them etc. Inventory management, on the other hand, is much more fluid in its operation since this is incoming (from suppliers) and outgoing (to customers) stock. In their line of products, then, asset tracking software is all about locating assets whereas inventory management software is basically tracking the input and output of stock in a business.

Despite this distinction in product type, if you need to track stock accurately (probably a requirement of most successful businesses!) and even want to update your customers with current stock levels (common in the case of e-commerce), then inventory management software is really the only way to go to ensure quality and efficient stock taking.

Which One?

When it comes to choosing, the most obvious difference in the two types of stock management is scalability. If your company is involved with picking stock from a supplier, storing in a large facility, selling to customers and delivering the goods, then warehouse management software is certainly a wise choice. On the other hand, small businesses might choose asset management software in conjunction with barcode scanners to maximize their stock management accuracy, ultimately reducing the time and cost for unnecessary deliveries and customer dissatisfaction.