Get an Edge in the Area of Inventory Management by Digital Transformation
The manufacturing industry is always looking for innovative and new ways to improve the efficiency of managing inventory. Starting with Vilfredo Pareto’s 80-20 rule to just-in-time and pull-based manufacturing, reducing excess inventory is a constant quest, spurred through Industry 4.0, also known as the Fourth Industrial Revolution or Industry 4.0.
However, major gaps in the management of inventory and Supply Chain management across the globe have been exposed in the past 18 months, as the outbreak of coronavirus destroying 50 billion dollars worth of exports across value networks around the world.
This does not only highlight the necessity to strengthen existing supply chains in order to stand up to global change and challenges and threats, but also the necessity to invest more into warehouse automation. A study suggests that post-COVID-19 digitizing inventory control is predicted to bring in 15 percent more investment over the coming five years than forecasted.
The time is now for manufacturers to take the leap making use of digital technology to gain better control of inventory and control the inventory. Starting with the design of systems down to the physical warehouse processes, improving the material flow throughout manufacturing processes will allow manufacturers to run more efficient and more efficient operations.
Inventory types that can be improved
Making raw materials into something that is useful and complete is a difficult process. This is why it is essential for companies to start by making the appropriate investments in digital technology for their warehouses. This starts with finding the most commonly used types of inventory you will find in your warehouse or plant to help optimize your inventory management process for efficient processes and less downtime.
- Raw materials and component
- The work is ongoing
- Final products
- Repair, maintenance, and operations products
Control, clarity, and efficiency in the management of inventory
If you are a manufacturer looking to integrate their inventory management digital transformation is the best solution. You will have greater control over your demand and supply management and the flow of inventory. You can also enhance your method of managing inventory by using these three essential digital tools:
- Information Visibility By digitizing and connecting factories with our products manufacturers can convert a variety of specific data into instantaneous insight across the entire manufacturing process.
- robotics with the advancement of robotic technology, including automated guide vehicles (AGVs) as well as autonomous robots for mobile, businesses can get fast, precise, and 24-hour warehousing solutions.
- 3D printing 3D printing lets manufacturers print components as and as needed, thus decreasing or eliminating WIP and the Finished Goods Inventories.
Transforming inventory management through this method allows you to make smart purchase decisions in the process of production and also manage inventory without disrupting production. It is possible to create digital models of your warehouses and plants to test production lines as well as supply of material before establishing the physical setting-up. In the end, you’ll benefit from competitive advantages in creating a future-ready business.
What Are the Four Types of Inventory in Manufacturing That Can Be Optimized?
Making raw materials into something that is useful and reliable is a complicated process this is the reason it’s so important for companies to make the appropriate digital investments for their warehouses. Selecting the best digital solution begins by discovering the most commonly used types of inventory they will use in their facility or warehouse. This will allow them to improve their inventory management to ensure efficiency and reduce time to repair. The four kinds of inventory employed in manufacturing include:
Raw components and materials
Raw materials are utilized by producers to create and produce finished products. Components are the basis of the final product during a manufacturing process.
This includes the raw materials, packing materials, and labor as well as components that are being produced.
These are products which have been manufactured process and are now ready for launch on the market.
Repair, maintenance, and operation goods
They make up an inventory of resources and supplies to support the production of products or maintenance of business operations.
Reshaping Inventory Management with Three Key Digital Solutions
Through digitalizing and integrating factories through digitalization, producers can transform precise data into immediate information across the entire production process.
Manufacturers have the ability to:
- Increase visibility and decision-making within the facility as well as improve control over inventory.
- Create virtual replicas of the facility to identify possible issues throughout your supply chain.
- Create more strategic strategies to manage demand and supply.
With the help of robotics technology, like automated guided vehicles as well as self-contained mobile robots producers can get fast, precise, and continuously stocked warehouses.
A warehouse that is automated can:
- Enhance the efficiency of operations
- Increase the amount of inventory
- Lower utility and labor costs
- Accelerate the process of fulfilling orders
3D Printing lets manufacturers print their parts whenever required. It could assist manufacturers in harnessing 3D printing technology and create new methods of manufacturing.
Manufacturers have the ability to:
- Reduce downtime in the warehouse
- Eliminate Excel’s-based management of inventory
- Streamline storage of parts and components
Control and Clarity With Digital Inventory Management
If manufacturers are looking to integrate the process of control of their inventory and inventory management, a digital transformation could be the solution. Manufacturers have greater control over their demand and supply control and the flow of inventory.
They can make the correct purchase decisions at the beginning of the process of production, manage the management of inventory without disrupting production and develop virtual models of the facilities to simulate production lines prior to physical setting-up. Through digitally redesigned the management of inventory manufacturers will ultimately benefit from competitive advantages in developing a future-proof company.
Business Success With A Smarter Connected Inventory Management System Optimize Your Inventory With Our Inventory Management Software
BRISK inventory management services can assist you in staying ahead of the curve in today’s competitive inventory. Logistics today is significantly different from what it was just a few years ago. Online shopping, small and more specific orders. This is why it’s crucial that the logistics systems you have installed are connected and efficient. Voice-guided systems and automated inventory management as it can help your business keep up with the competition. Begin by contacting us about Driving Digital Transformation with Smart Solutions.