Just-in-time stock control is an inventory management style used to limit the amount of stock within the warehouse and helps buyers make informed purchasing decisions.
It works by matching stock levels with what is needed for production or customer fulfilment. So rather than carrying large inventories of parts or goods, manufacturers can operate a just-in-time model that ensures parts only arrive as, and when they are needed. Here we explore the benefits of just in time stock control in manufacturing.
Save warehousing space
Just-in-time stock control will minimise the amount of warehouse space required and limit the chances of having excessive stock. With a more rapid turnaround of stock, there is a limit to the amount that you need to hold at any one time and this means you can utilise a smaller space to achieve the same rate of production or fulfilment. There are many benefits to this and not least is the ability to operate from a smaller location with lower overheads. With just-in-time stock control, you can significantly reduce the amount of space that you need.
A faster turnover reduces the chance of goods getting damaged in your workshop or warehouse and stops them from deteriorating or become outdated while they sit in storage. By simply holding goods for a shorter period you can reduce the risk of damaging them and having to dispose of them as waste.
This method of stock control allows smaller outlays into stock in the first place. By limiting investments that you have to make into parts and only buying what is necessary can improve cash flow, minimise operational costs and enable the company to remain in the black while providing services.
This reduces the risk that you will face because your investment and potential losses will always be lower. With a smaller outlay on the stock, you can reduce other costs like insurance premiums, as the value of the stock in your property will also be lower.
A standalone warehouse management system can be used to manage stock control. But an integrated ERP solution can help manage your warehouse plus, other things such as sale orders, resource planning, supplier management through to production. For example, by integrating your stock control and product production into the WinMan ERP software can ensure that you always have what you need without all of the added costs of holding stock and the need for larger storage space. It can manage your processes from start-to-finish, so you will always have all the information within a central system to help you make informed decisions.
A solution such as WinMan ERP software is fully integrated and allows you to do just that. To find out more about WinMan, contact us today.