Is just an inventory management solution enough for manufacturing SMEs?
Do you own manufacturing business?
You have clicked on the article to find an answer to the question asked above.
No. The answer is 'no' if you own manufacturing business. We believe an inventory management solution is not enough for any manufacturing SME. Although you get a big plus in comparison to businesses that use Excel spreadsheets for inventory management.
The manufacturing process isn't just about inventory management. It is a part of the long process from customer inquiry to dispatch. What you need is an integrated solution that provides ease with all the operations processes. Investing in a good inventory management system and adopting best practices can help you get your inventory under control. It will ensure you have the right parts, and the right amount of parts, on-hand to avoid production bottlenecks. It will ease operations and get orders out the door on time, to ultimately keep your customers happy.
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Here are some benefits of an integrated inventory management system
1. Inventory Tracking
Inventory management is all about knowing what raw material and finished product you have on hand, sitting on the shelf. However, you need an inventory management system that is integrated with the rest of your organization. An inventory management system alone can't effectively optimize your inventory.
An integrated solution combines inventory management with the rest of your operation, making tracking inventory throughout your organization easy. An integrated system gives your staff instant access to a centralized inventory database that’s updated in real-time. This lets you know exactly what you can or can’t fulfill, what raw materials you actually have on hand. It also gives you the confidence that what is recorded in the database actually matches what is sitting on your shelf. It makes production more efficient and also eases financial reporting.
An integrated inventory management system can save you time and money by eliminating the daunting task of manually processing inventory management. Say goodbye to updating spreadsheets manually, and hello to real-time inventory updates. This means you spend less time doing the time-consuming task of manual input and more time focusing on other parts of your manufacturing business.
An automated inventory management system eliminates human error and avoids future issues that may come with it. You will also have a complete picture of your inventory in your dashboards, giving you better visibility into your operations. And with an integrated system, almost everything is automated. It gives you more confidence and more time to get the job done right.
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3. Streamline Business Processes
Accurate inventory management can help increase a manufacturer’s overall efficiency. Employees can spend their time on other tasks instead of for example trying to locate one particular piece of raw material. With an integrated system, you can automatically keep track of the inventory you use on each job. It will help you do proper production planning as you know exactly the amount of raw materials you have on hand, and what you need to order to complete a job.
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4. Forecasting, Restocking, & Managing Excess Inventory
An integrated inventory management system keeps track of sales, purchasing, and accounting for you so that you have the right inventory levels to match your business needs. You get the advantage of an inventory management system that is in sync with the rest of your operation. It makes it easier for you to manage things like long lead items, as you can know about these items during the design phase of a project. It gives you enough lead time to order the item and ensures you have it when it is needed.
5. It Saves Money
Every business owner knows that efficiency means cost savings. Rather than paying for separate systems to handle different parts of your business, using an integrated solution for inventory management handles many different aspects of your business. It reduces the overall workload and minimizes expenses.
Now that you know all the benefits of an integrated inventory management system you won't hesitate in using it. Mind it we're not asking you to get ERP for your business. We know using ERP is tough and your business doesn't really need all those complicated modules. You just need an integrated solution that is easy to use and integrates with your accounting solution. TranZact gives you exactly that. It is a web-based solution that is meant for SMEs to digitize their business processes from customer inquiry to dispatch. What is best about it is that the basic version of the product is free so that SMEs can relax and not worry about silly amounts of money.
Digitization is a must for the Indian manufacturing sector, specifically for SMEs. It will help enhance the effectiveness, profitability, and overall growth of the businesses. This, in turn, will benefit the economy and allow for maximum consumer benefits and satisfaction.