Inventory management has been a challenge within many manufacturing facilities around the globe. There are always prevalent questions that come about. How much inventory is needed on hand? How can we get better at managing our inventory and keeping costs low? Is there a way that we can have more insight on our inventory situation at a given time? All of these questions are what manufacturing operations and operations managers are asking themselves at all times as they attempt to cut costs and save the facility money. Any manufacturing operation that sells products will need a reliable inventory management process and method.
As we see consistent advancements in technology and attempt to boost efficiency within the manufacturing industry, computerized inventory management software has made its way to the forefront and has made it much easier for businesses to stay updated on a consistent basis. With any new system implementation, business owners should consider the advantages and disadvantages pertaining to a computerized inventory system before ultimately purchasing the software. Therefore, here are the advantages and disadvantages of utilizing computerized inventory management software.
Advantages of Computerized Inventory Management Software
Within computerized inventory management software, there are two main advantages that can greatly aid your operation, with the first being automated reordering and in-stock information. Computerized inventory informs employees and customers within seconds, whether an item is in stock or is unavailable. As this inventory is synced with sales, there is a running tally of what is in stock and what isn’t. This will ultimately aid reordering needs and provide much better service to customers. As more orders are placed and the software picks up that inventory is dropping below the safety stock requirements, then new orders will be placed with vendors and tracked, thus allowing customers know when new products will arrive.
The second advantages pertaining to computerized inventory management software includes forecasting and planning. Computerized inventory management software tracks where inventory is, how much is on-hand, and when to reorder. This data collection system is also utilized to create needed forecasting and strategic planning reports. Business owners will review trends regarding which products will do well in certain months or during specific cyclical seasons. In order to avoid any data loss, business owners should back up data regularly.
Disadvantages of Computerized Inventory Management Software
While there are a series of advantages pertaining to computerized inventory management software, there are also a series of drawbacks within the system as well. These two drawbacks include potential system crashes and reduced physical audits. System crashes are by far the biggest disadvantage pertaining to computerized inventory management. A corrupt hard drive, power outage, or technical issue can all lead to a loss of needed data and could potentially shut the entire operation down. At the least, businesses are interrupted when they are unable to access data that is needed.
Reduced physical audits also can be an issue and disadvantage due to loss of in-person interaction with the inventory. It is easy to reduce the amount of physical audits because the computers will do all of the work, but it is still important to conduct physical audits to identify areas of spoilage or breakage. Audits will also help business owners identify any potential internal theft and manipulation of the computerized inventory system.
A software that can aid with computerized inventory management includes PlanetTogether’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software is a must for manufacturing operations that are seeking to enhance operational efficiency, reduce inventory costs, and ultimately ensure that orders are met within a timely manner.
Advanced Planning and Scheduling Software
Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.
- Create optimized schedules balancing production efficiency and delivery performance
- Maximize output on bottleneck resources to increase revenue
- Synchronize supply with demand to reduce inventories
- Provide company-wide visibility to capacity
- Enable scenario data-driven decision making
Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.