Saving Tips for Discrete Manufacturers: Reduce

Discrete manufacturers in every industry face a daily struggle with creating supply chain management and reporting solutions that eliminate labor and material wastes in their production operations. Even more so, the desire to establish a reliable, yet simplified system for procurement, which will ensure a steady stream of consumable parts, components, and other goods needed for the assembly process, is rather widespread among businesses who contend with global competitors.

Incorporating ways to effectively control your inventory costs and supplies means finding supply chain management and reporting techniques that work for, and with, your specific production process. The right techniques will help generate the improvements you need to reduce your overstock and prevent the frustrating inventory wastes created by the excessive levels of consumable items.

Eliminating Overstock 

So much of your business assets are represented by various material, work-in-progress, and final product inventories that discovering methods to reduce these amounts is an exceptional way to improve cash flow and free embroiled capital. Modifying your supply chain management and reporting software to an innovative ERP program allows you to appropriate those funds into alternate areas, such as marketing programs, designed to increase sales.

The longer a part is stored at your production location, the more it costs. Advanced ERP systems give your administrators the ability to accurately generate PO’s according to actual stock counts, significantly reducing the amount of consumable items housed at your facility. Using easy to access information, the planning, scheduling, and replenishment shipments can be better regulated using the innovative procurement tools featured in updated ERP systems, reducing your soft costs per part.

Reducing Wastes

The same supply chain management and reporting solutions that control purchasing also provide your company with superior methods for lowering work-in-progress and final product overstock amounts. These lean manufacturing principles produce a significant reduction in shrinkage wastes, improve workflows by increasing floor space, and lessen the chances of FOD instances.

Your discrete manufacturing business can reduce the wastes associated with excessive overstock and improve supply chain management and reporting procedures with new, ERP software. This value added product will lower your operational costs and generate supply chain and reporting solutions that increase your profit margins immediately.

For more information on the best software for your ERP needs, contact one of SBS Group’s industry experts. For over 25 years SBS Group has been providing solutions for over 1800 ERP clients and was recently named as one of the Top 20 Microsoft VARs in the world.

 

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