Improve Manufacturing Inventory Management

Supply chains have become increasingly complex and global. Meanwhile, production and shipping volumes continue to climb to meet rising consumer demands. In this environment, manufacturers need visibility and control of their processes.

Manufacturing inventory management is essential in achieving this goal. It means knowing where an item is located within the supply chain at any moment and how much of it you have. Achieving the right balance of inventory through a smart combination of software and hardware will help you increase efficiency, save money and ensure customer satisfaction.

What is smart manufacturing?

Smart manufacturing is a technology-driven approach to manufacturing that's more easily able to meet changing demands in the factory, in the supply network and in customer needs. It supports lean operation principles, including supplier diversification, inventory management and equipment innovation. Many successful businesses are implementing smart manufacturing processes to combat the supply chain instability that has become common as a result of volatile market conditions the last few years.

Find the software that fits your needs

The days of spreadsheets are over. Today's top manufacturers rely on inventory management software to stay on top of supply.

Consider both your current requirements and your plans for the future. If you're planning expansion, for example, you'll want a system that will scale with you. Here are some key questions to ask to get you started.

• Is it cloud-based? The most popular manufacturing inventory management software solutions run on cloud platforms. This lets you access data across multiple devices and locations through the internet. That means you can keep track of your product from anywhere, giving your entire supply chain added visibility. For example, a food manufacturer might put a cloud-based system in place to help them track products from raw materials all the way to dispatch. This speed and flexibility can be critical when dealing with regulations and potential ingredient recalls.
• Is it compatible with my other systems? Many cloud-based tools also integrate easily with other applications, such as your accounting software or customer relationship management system. If you already have these other software solutions in place, compatibility between them may help you get the most out of all your digital investments.
• What are the added capabilities? Some inventory management software also includes forecasting tools, which can guide purchasing decisions or even automate buying orders. Features like these might be helpful or even critical if your operations are relatively large in scale.

New technologies that maximize efficiency

There are many technologies available to help your business effectively manage inventory. As industries become more complex and globalized, these technologies are becoming necessary. In particular, using Radio Frequency Identification, or RFID, and Artificial Intelligence, or AI, in inventory management can improve nearly every aspect of the supply chain.

Managing inventory with RFID technology

RFID can track and manage inventory through the entire supply chain. You simply attach an RFID tag to a product or pallet, and it automatically transmits information to RFID readers. This information gives you real-time insight into inventory levels and products' locations. Plus, it enables warehouse staff to effortlessly locate products and know when restocking is necessary.

Using AI to revolutionize supply chain management

AI-driven systems can transform businesses. Some of the most common ways businesses are using AI to modernize their supply chains include:

• Analyzing and predicting when more or less inventory will be needed
• Identifying patterns and trends to help make smarter choices
• Real-time tracking
• Proactively scheduling maintenance on equipment
• Assessing supply chain risk
• Inspecting products for defects
• Optimizing supply chain processes
• Automating warehouses

Support your systems with the right hardware

No matter what software system you choose, the correct hardware will help you maximize its effectiveness. First and foremost, you'll need computers to run the software. These can be desktop computers or laptops, but tablets and even smartphones can also work well. Devices with touchscreen capability may be the most intuitive and efficient for your employees to use. You'll need to set up a company Wi-Fi network, and if your employees need their devices in a warehouse environment, look for drop-resistant construction.

You might also consider investing in a barcode printer and one or more scanners, which are faster and more accurate than entering information by hand. If you're a small manufacturer, a wireless, handheld scanner should do. You could also look at apps that turn smartphones into scanners. As for barcode printers, you'll likely want a thermal printer with the ability to print in batches and on demand. Look for one with 1-D and 2-D capabilities—2-D labels can hold more information and work easily with smartphone scanners.

Finally, there are robotic storage and warehousing solutions that use small delivery stations to make warehouses more efficient. Although these are expensive, the investment may make sense depending on your needs.

Investing in technology can increase convenience and ease of use for you and your employees. And by helping you work faster and more efficiently, the right inventory management solution can boost your bottom line.