Competition within the marketplace is greater than ever, so any way businesses can gain a competitive advantage should be welcomed. As such, new technological development can assist the continued company success and help improve productivity and efficiency.
One of the latest and most exciting technological developments are transforming business practices throughout the corporate world is the use of high-tech, digital solutions to increase the synchronisation of different processes within operational procedures. One such innovative example of this trend is the greater synchronisation of manufacturing and inventory processes.
What is manufacturing and inventory process synchronisation?
Simply put, the synchronisation of manufacturing and inventory processes involves the use of technological solutions to ensure inventory levels are stocked with the right amount of material or goods to match requirements; and that manufacturing processes will also have the materials required for production to run smoothly to meet consumer demand.
However, matching inventory and demand is a difficult task, as it is hard to achieve the right balance. The traditional practice that companies have employed in the past has been to rely on previous purchase data to forecast expected consumer demand. Whilst this could often be effective, it did not achieve a consistently high-rate of accuracy.
The introduction of technologies such as inventory optimisation and resource management has helped to transform the way that businesses purchase stock for their inventory, and how this stock is input into the manufacturing process. The use of inventory optimisation helps companies to manage their inventory levels to match consumer demand with digital solutions that can collect data immediately to correspond with fluctuations in the market. Moreover, the use of resource management helps companies to utilise their workforce on the factory floor as efficiently as possible, only producing as much as needed to match consumer demand. The synchronisation of both processes helps to ensure that the company supply chain is running as productively and efficiently as possible.
The benefits of synchronising manufacturing and inventory processes
The synergy of these processes allows the greater utilisation of warehouse space. Using digital solutions to monitor inventory levels, match stock levels with consumer demand and manufacturing processes can help to provide accurate operational data. Leading to the warehouse only stocking as many goods and components that are necessary, reducing the amount of material that can clutter the warehouse floor. This clearly helps to improve efficiency, as less is spent on purchasing goods and components that are not needed.
Furthermore, it allows for accurate management of demand and supply. Companies only need to purchase as much stock as needed to meet demand levels, and thus can reduce inventory costs by holding less physical stock at any given time. Matching supply and demand enable companies to provide customers with exactly what they want when they want it, and thus the overall manufacturing process becomes more optimised to match output to actual demand.
The utilisation of an integrated enterprise resource planning (ERP) solution can help to achieve the aims of streamlining different processes within a manufacturing company. Allowing all components of the manufacturing process to be integrated, sharing data between departments, allowing a proactive response to issues and maximising productivity and efficiency.
WinMan ERP is the perfect example of a comprehensive, all-in-one system that has a range of functionality. To learn more about how our ERP system can benefit your business, contact us today.