With the manufacturing industry facing mounting pressures from supply chain complexities, evolving customer expectations, and economic uncertainties, now is the time for businesses to adopt innovative solutions to remain competitive.
Manufacturers face challenges that demand innovative solutions like automation, AI-powered analytics, and additive manufacturing. But one game-changing tool often overlooked is an effective and reliable inventory management solution (IMS).
Discover six powerful ways an IMS can boost efficiency, improve processes, and drive growth in your manufacturing operations.
Improved demand forecasting with AI-powered insights to optimize production
Without forecasting, you risk overproduction, stockouts, or wasted resources, which hurts profitability and customer satisfaction.
An IMS predicts what to produce, when to produce it, and how much you need using real-time data and historical trends. Modern systems use AI-powered demand forecasting, which goes beyond simply using historical sales data or basic trend analysis. The AI component in the system is designed to learn from past data and adapt to changing market conditions, which provides more accurate and reliable forecasts and helps you maintain optimal inventory levels.
An IMS also links forecasting with raw material consumption and purchase order requirements to ensure timely procurement and production.
Simplified BOM creation for accurate manufacturing
A bill of materials (BOM) ensures that every raw material, component, and process is accounted for so that your operations remain accurate and efficient. With an IMS, you can create simple, complex, and multi-level staged BOMs without all the manual steps.
Of course, not all software can create and manage multi-level BOMs effectively. Those that can help manufacturers manage complex workflows consisting of subassemblies, production stages, and outsourced processes.
For example, consider a boat manufacturer that uses an IMS to manage vessel production.
The boat’s multi-level BOM includes subcomponents like the engine, steering mechanism, and hull, each requiring careful tracking and management. Here’s how an IMS handles each subcomponent to streamline and simplify the process:
Subassemblies: The IMS tracks the inventory and costs for each subcomponent (e.g., engine and hull) so that they are properly accounted for at each production stage.
Outsourced tasks: If the hull is sent to a contractor for painting, the IMS automatically updates the BOM to reflect this change and record the associated costs of outsourcing this task.
Reintegration: Once the painted hull returns, the IMS reintegrates it into the production process and automatically updates the inventory levels and production costs in real time.
Enhanced traceability for regulatory compliance and quality control
Traceability allows you to track materials and components throughout the production process, ensuring regulatory compliance, which is especially crucial in the food, automotive, and medical industries. And it simplifies product recalls when issues arrive.
It is generally a standard feature in robust IMS platforms. By tracking raw materials, work-in-progress (WIP) units, and finished goods while assigning unique identifiers to every part, an IMS provides complete visibility across all stages of production. This ensures that products can be accurately traced back to their source.
Automated work order management for accurate task execution
Work orders (WOs) act as detailed blueprints for production tasks by offering clear instructions on what needs to be accomplished.
An IMS automates the creation, tracking, and updating of WOs. This automation improves communication and decreases the chances of errors occurring during task execution.
Advanced platforms let you configure the system to automatically generate manufacture orders and associated WOs based on your BOMs. This approach ensures that every stage of the production process is connected and accounted for.
Some systems also offer mobile access so workers can update WOs in real time, log material usage, and mark tasks as complete from anywhere on the production floor. This ensures everyone is on the same page and tasks are completed promptly.
Integrated inventory and accounting software for financial accuracy
Discrepancies exist between inventory and financial records because manufacturers typically rely on manual methods for tracking and managing inventory and financial data, or there’s insufficient integration between the IMS and accounting software.
The real robust platforms integrate effortlessly with your favorite accounting platforms, like QuickBooks, to automatically synchronize inventory and financial data. This process eliminates duplicate data entry, optimizes workflows, and reduces mistakes.
This integration automatically links labor time and material usage costs to the cost of finished goods, allowing you to accurately record financial data related to production costs. It also helps generate WIP reports for detailed production quantities, giving you a comprehensive overview of manufacturing’s effect on cash flow and taxes.
These features streamline administrative tasks, improve financial reporting, help you make data-driven decisions, and drive profitability.
Customizable workflows and multi-site inventory management for scalability
As your business grows, operations typically become more complex, with new challenges such as managing inventory across multiple locations, increased inventory complexity that makes it harder to maintain accurate stock levels, and resource allocation issues with materials and labor that can lead to production delays.
However, an IMS helps address these challenges by providing tools to maintain inventory control and visibility as you scale.
For example, multi-site inventory management allows manufacturers to successfully track and manage inventory across locations in real time, while customizable workflows, such as configurable manufacturing stages, let you adapt processes to your changing needs.
Transform your manufacturing with Fishbowl
The right IMS is a powerful solution for boosting efficiency, improving decision-making, and unlocking business growth. Throughout this post, we’ve explored six key ways the right IMS can optimize your operations.
Fishbowl brings all these capabilities together into one comprehensive platform designed for manufacturers.
From AI-powered demand forecasting with its assistant, Athena, to simplified multi-level BOM creation, enhanced traceability, and automated WO generation, Fishbowl is designed to simplify and streamline complex production processes. Plus, its seamless QuickBooks integration ensures accurate financial reporting and better cost management.
Whether you’re managing multiple locations or navigating complex supply chain issues, Fishbowl provides the tools you need to enhance manufacturing efficiency, maintain inventory visibility, and drive growth.
Book a demo to see how Fishbowl can optimize your manufacturing processes and support your business growth.