When running a manufacturing business, stock management can be a daunting task. Stock management is a difficult job even with trained warehouse and despatch staff. If not properly managed, it could result in loss of profits, increased workload, and lack of space in your warehouse. Fortunately, employing the right stock management strategies ensures everything is kept under control.
Set a benchmark par level
Having a laid out par level in your warehouse allows you to have a detailed idea of the stock at hand. With this knowledge, you know the quantity your storage space can hold and this helps you control logistical operations, rather than scrambling to manage new deliveries last minute.
With this benchmark, you can make a better decision when placing an orders for raw materials rather than relying on guesswork which could result in waste. It’s then easier to monitor stock levels and be in control, so if a certain stock item drops below a certain level, you know it's time to reorder that material.
To make sure you know the full potential storage space of your warehouse, it’s important to analyse your order and production procedures. It’s vital to track your average order quantity, the number of products produced and the level and speed of despatch of final products so you can implement this data into your stock ordering processes.
Invest in automotive technology
Technology is designed to minimise manual labour. Introducing digital systems into your stock management has the potential to speed up your processes significantly. For instance, in the food industry, the implementation of a food traceability system allows manufacturers track raw ingredients from stock in, through to final despatch of the product. Each ingredient is assigned it’s own unique identification number, meaning that you can trace which delivery of stock each final product is made up from, making products recalls simpler and cheaper for the business.
Technology also helps us monitor stock that moves out of the factory. You will be able to keep track of the number of goods successfully delivered to customers, those that got rejected, and those still on the road. Some software allows factory owners to track their stock and receive updates from different parts of the world.
This action allows us to get more done and minimise the risk of delivery failure. Also, when it comes to keeping inventories, we should know that some surprises can spring up no matter how organized you are.
It's important to always have a backup in place. You can run out of stock, delivery can be delayed or miscalculated, thereby upsetting the system put in place.
Do some Forecasting
Managing factory procedures is a busy job, however to avoid some ugly situations, you need to indulge in logistical operation forecasts. Forecasting allows you to Identify market trends, economic growth, and other factors that might affect sales.
Using this raw data allows you to predict market performance as well as the best way to position your products.