Are you unsure if manufacturing inventory software is right for you? It can be a big investment for a manufacturer, so you need to weigh the costs and benefits before making a final decision. To help you get this process started, here are the top 10 ways that inventory management software helps manufacturers:
1. Create bills of materials and work orders. With manufacturing inventory software, creating a bill of materials or work order is a relatively fast process. Using a computer or barcode scanner, you can quickly organize a list of parts you need for simple and complex manufacturing jobs. This is an important time saver.
2. Integrate with QuickBooks. By integrating with QuickBooks, manufacturing inventory software makes it easier to keep your accounting records and accounting books in synch without time-consuming inventory checks. Here’s a tip: Make sure the inventory software you’re looking at is compatible with QuickBooks 2011, which is being released today.
3. Make inventory management less complex. Trying to manage your inventory by hand is a daunting task, but there is hope. By using manufacturing inventory software, you cut down on the complexity of inventory management. Many of the processes become automated and easier to handle.
4. Recover leftover parts. You might notice that you have a lot of leftover parts after a manufacturing job. Because it’s difficult to account for them in QuickBooks, many businesses just write them off as having been used. However, by using inventory tracking software, you can track those unused parts and recover them for future jobs. This can be an effective money saver.
5. Keep up with increases in sales orders. As your company grows, you face the challenge of producing more products and working with more inventory. To keep up with these changes, you should use scalable inventory management software. Its capabilities can increase to meet your growing needs.
6. Plan ahead for drops in demand. Demand isn’t always going to go up. You need to be prepared for downturns in production and seasonal rises and drops in demand for different products. By constantly feeding information into your manufacturing inventory software, you can start to see patterns and plan for them.
7. Improve warehouse organization. It’s important to know where everything is in your warehouse. Manufacturing inventory software helps you organize your warehouse so all your parts and products are in the best locations for picking, packing and shipping purposes.
8. Manage suppliers to avoid stockouts. Once you have your warehouse in order and you’ve planned ahead for rises and falls in demand, you need to focus on your supply-chain management. Suppliers can make or break a manufacturer. You need to build solid relationships with your suppliers and have multiple options in case one fails to fill an order. You can monitor whether or not deliveries are arriving on time and more with inventory tracking software.
9. Speed up the manufacturing process. A major competitive advantage inventory management software gives to manufacturers is increased efficiency. The faster you can create a bill of materials, locate the materials you need and start production, the faster you can fill customer orders. Manufacturing inventory software helps you speed up the process every step of the way.
10. Maintain an optimal amount of inventory on hand. You don’t want to overstock on inventory. You also don’t want to run out of products when purchase orders come in. Keep your carrying costs to a minimum by having the right balance of inventory on hand.
Carefully consider the benefits of manufacturing inventory software to see if it’s right for you. If you’re interested, click here for a free demo.