With the fusion of technology and human intellect, the manufacturing market is expanding every day. In just 2021, India was ranked 2nd index and overtaken the United States in the manufacturing industry. This subliminally means that the industry is expected to evolve more in the future. It also includes optimising your production to the fullest, part of which is inventory.
Inventory is a key part of the manufacturing industry, without which the entire industry can collapse. This is why having an effective inventory is essential. Some of the main components of it are raw materials, spare parts, finished goods, repairs, and the list goes on... Managing so many things at once can get overwhelming. Which is why using inventory management methods can be beneficial. Take a look at the following 3 easy methods of inventory management for optimal function.
• Supply chain KPIs
When it comes to the supply chain, knowing the key performance indicators can be a game changer. Two crucial ones that can be helpful are the filled rate, also known as the availability rate, and inventory turnover. Fill rate or availability rate is about analysing the customer's purchase needs, either during production or based on in-store sales. Whereas inventory turnover is concerned with determining whether stocks meet sales. Based on these analyses, we can decide to improve our inventory and enhance our production process.
• Inventory plan
Before executing any plan, we need to assess the existing condition of data and procedures. Once we assess the data and procedure, we try to fill the data gaps and enhance the procedures that are causing delays or failures. After this, we can begin our plan by dividing it into four basic sections. One is raw material, the second is fabrication, the third is assembly, and the fourth is finished goods. You must categorise and measure each of these and keep an account of them. Once this is done, you can easily use AI-based software to track and order essentials accordingly.
• Demand Forecasting
Being ahead of your production process is a great way to become the best in the industry. But what if it is causing you massive losses with unnecessary inventory and wastage? This is why we must integrate demand forecasting into our manufacturing process. Demand forecasting tools help us predict, analyse, and execute production plans without loss. You can simply use free online tools or conduct a market/in-house study based on which you can predict the future of your inventory.
Though there are many crucial components in manufacturing a product, inventory takes the lead. Even at Radiant Appliances & Electronics, you can see that we use the best ways to track our inventory. If you want to know more about the industry, such as the advancements and technology, visit the Radiant blog now! For any services related to manufacturing, supply chain, or aftermarket support, contact us through our email at firstname.lastname@example.org or give us a ring at +91-8414 667701 .
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