Inventory Planning Software in Manufacturing

Effectively managing inventory has always been one of the main hindrances within production facilities. If inventory is too high, inventory holding cost are increased. If inventory is too low, operations are unable to meet with specific delivery times, ultimately harming relationships with customers. In order to combat these inventory challenges, it is essential to implement an inventory planning software that enables proper inventory management. Implementing an inventory planning software will not only decrease cost within the operation, but it also aids the operation through the utilization of accurate demand forecasting, demand planning, and increased production efficiency.

Inventory Planning Software Components

Some of the components within inventory planning software include the following:

Demand Forecasting - Accurate demand forecasting is key within inventory planning. Without accurate demand forecasting, production is unsure of the correct amount of units to produce within a given time, ultimately creating inefficiencies within production. When demand is being accurately represented, this ensures for customer orders to be fulfilled with ease without hindrances including high inventory cost or being too low on inventory at all times.
Integrated Planning - When teams and departments are functioning individually, it is difficult to work toward a goal collaboratively. This is why it is important to communicate with various departments through utilization of data being entered into a system that alerts other departments as well. This is how upstream forecast are built and any planned changes in the network are utilized.
Real-Time Visibility - Visibility is vital within a manufacturing operation. Real-time visibility enables the operation to have clear insight among areas such as inventory balances and customer order fulfillment. Real-time visibility simply ensures that you are up to date at all times of your current production status.