Do you need to introduce a better inventory management system?
Inventory management systems are one of the most complex features of an ERP/MRP. It has to:
- Inform the estimators of material value and available quantities
- Constantly alter when materials/items are withdrawn and deposited
- Raise purchase orders when a quote is converted to a live job and there are insufficient materials
- Manage multiple varieties of materials
This article will look at the core features a small manufacturing business needs from inventory/stock management software.
Monitor inventory value
Monitoring the value of your stock is critical, especially in turbulent times when the cost of materials fluctuates frequently. Editing purchase and sale prices quickly or automatically will ensure you consistently make the benchmarked margin with markups added to inventory materials and components.
Understanding the total value of stock held is also valuable to owners and managers. This information can be used to minimise the value of assets that have the potential to become liabilities should they not be sold.
Use minimum stock quantities
Many manufacturing businesses use or rely on specific materials. A production bottleneck is created when there is a shortage, resulting in production downtime and possible late delivery.
Creating minimum stock quantities will notify production and purchasing managers and raise a purchase order for a preferred supplier that can be sent directly from the MRPs inventory management system.
Tracking and traceability
Whether your business holds quality accreditations or not, tracking inventory materials and tracing their source is invaluable in the event you need to question the material's quality.
Auto-generated purchase orders
ERP/MRP software is designed to automate as many repetitive tasks as possible by reducing the need for manual data entry. All inventory systems should function using live data and can raise purchase orders to prevent stock shortages for both live and scheduled works orders.
Purchase order tracking and supplier reporting
A reliable supply chain is invaluable to manufacturing businesses of all sizes. A robust inventory management system should be able to track and analyse supplier delivery performance against expected arrival dates.
Cost tracking by reporting on the value of purchase orders, specific materials and components will identify which suppliers are the most price competitive.
This information will allow owners and managers to decide on preferred suppliers to create a more reliable and profitable supply chain.
Add incoming stock to lead times
Many small manufacturing businesses buy inventory materials to fulfil a live order, especially those businesses that operate inside the bespoke Adhoc manufacturing sector.
Understanding the average delivery length of your suppliers will help estimators provide accurate lead times on their quotes and provide production managers with reliable information to create a production schedule.
Final Thoughts
Inventory management systems can range in complexity, but one thing is for sure, manufacturing businesses of all sizes benefit from the organisation they provide and the information they deliver.
With our intuitive and reliable ERP inventory system, you'll never have to worry about production delays. Statii Ltd are experts in cost-effective ERP software solutions suitable for SMEs. Our company was established by two entrepreneurs with manufacturing and engineering backgrounds who couldn't find an ERP inventory system that suited their manufacturing SME.
If you're looking for the best inventory management system, why not try our free trial today? Or simply contact our team for more information.