For discrete manufacturers, maintaining the delicate balance between parts replenishment and tracking requirements without overstocking consumable materials, work-in-progress, and finished product inventories, may seem like the impossible dream.
Yet innovations in ERP software have made supply chain management and reporting procedures easier than ever, allowing manufacturers to introduce lean strategies at their facility, and positively alter inventory maintenance dynamics.
Since various forms of stocked inventory represent such a substantial amount of your company’s assets, implementing effective supply chain management and reporting controls at your production facility helps to regulate cash flow expenditures, and ultimately finished product costs. Simply stated, the longer an item is housed at your facility, the more expensive it becomes.
ERP software can help stabilize replenishment schedules and shipments, streamlining the inspection process at receiving, and eliminate data entry errors which can contribute to stock-outs, rush shipments, and high levels of overstock. The supply chain management and reporting solutions included in advanced ERP software also provides superior lot tracing and tracking compliance on regulated parts, materials, or components.
Reducing overstock decreases operational expenses by lowering FOD, shrinkage wastes, and inefficiencies produced by storage confusion. Moreover, improved supply chain management and tracking procedures positively affect production lead times, and increase your ability to effectively control distribution schedules.
You can improve product profit margins by introducing lean strategies at your production facility, lowering your operating costs, increasing staff efficiency, and improving your supply chain management performance with new ERP software.
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