Product manufacturing is tough. There are many kinds of product manufacturing processes, but there is one thing common among all of them i.e. inventory management.
Without the inventory, no production can be started. Different types of inventory are needed at different levels. So, production is all about managing the inventory.
Hence, the most important software required in product manufacturing is the inventory management system (IMS).
Before we explain how it is important in the manufacturing business, we give little explanation of the basic term related to the main topic.
What is meant by product manufacturing?
The process in which material, components,s, or parts are used to manufacture a product is called product manufacturing.
Normally, the production process needed machinery and labor to complete the production.
The product manufacturing business is having the following types.
The business that manufactures the products before the order of the customers. Usually, they have to face the over or less stock situation due to fluctuation of customers’ demands.
These businesses, start the process, as they receive orders from the customers. Well, they don’t have to face stock out or overstock situations. But there is pressure to fulfill the order on time.
These businesses manufacture the parts in advance but assemble them only when they received orders from clients. This will help them to fulfill the orders on time.
Stages of Production
The following stages are common in every production.
- Design and development
- Purchase of inventory
- Production on different stages
- Final production evaluation
For manufacturing, we need inventory management software to streamline all the operations. Without it, it’s difficult to manage the whole process.
Inventory Software: That You Need in Product Manufacturing
Here, we provide you with detailed information that will help you understand how an inventory system is helpful in the manufacturing process.
- Purchase of Raw Material
After planning, the first step in manufacturing is the purchase of raw materials. It’s quite a difficult task to find potential buyers for your business. To choose the right vendor, information helps a lot.
If you are new, always buy small quantities at first to evaluate the quality of the material. Good inventory software makes it easy to buy, receive, and place raw materials in the right place
- Inventory Methods and Techniques
Stock is used in multiple ways for production. It all depends upon the type of material.
Some inventory techniques include:
- First in First Out (FIFO)
- First in Last Out (LIFO)
- Mixed quantity
- Just in time (JIT)
Read also How is IoT Changing Inventory Management
- Batch Tracking
In production, we normally use the batch tracking method. This method is used by the company for a similar group of items. Inventory management software immediately shows the status of these batches.
- Low Stock Notifications
To avoid any disturbance in the production process. A smooth supply of material is required. If at any stage the supply of material is stopped, the next steps of the procedure are disturbed.
Here, an inventory management system works smartly and alerts a business before stock is empty. The low stock alert helps owners order the material at the right time.
- Evaluation of Production
It is necessary to check and evaluate the actual reasons for the loss of material. That’s why, according to the nature of loss, necessary plans should be adopted in a timely manner.
To do a proper evaluation, use IMS to answer queries like:
- Inventory cost
- Inventory billing and payment
- Usage of plants and machinery and their cost
- Damaged material or product details
The Best Inventory Management Software
If you are undecided and do not know which software is the right option, try SeeBiz Inventory. It has tons of features that can help in product manufacturing.
Contacts of Vendors
Seebiz inventory allows you to enter vendor contacts in the system. Once these contracts have been added, you can make purchase orders for suppliers.
With the help of SeeBiz Inventory, you can drag and place purchase orders easily. You just have to select the products and vendors and other necessary things. This software’s features are easy to use. That’s why orders can be placed at any time.
Tracking Goods in the System
You can measure the quality of the order received. After receiving, a specific number is given to products to track them wherever they might be. The inventory management system gives you the real-time status of goods.
Tracking Sales and Purchase Flow
This system not only helps in the purchase and manufacturing process. With this software, you can check the sales order for the manufactured products. It also helps record sales by creating sales invoices and saving them within the inventory.
Accessible by Multiple People
Production has multiple stages. At every stage, employees need inventory information for various purposes.
With SeeBiz inventory, you can allow access to specific employees. This will help them perform their duties more accurately.