Getting a handle on inventory is an art as much as a science, especially as all the critical manufacturing metrics around supply chains, workforces, output, and market demand continue to flip-flop between too much and not enough. 

To be in an ideal cash position no matter where the trends go, manufacturers need more insights into all aspects of their business operations. Inventory management is an effective and cost-focused area to start with.

Our new ebook, “Master Inventory: A Winning Strategy to Optimize Stock & Boost Profits,” offers a quick primer designed expressly for manufacturers looking to reduce carrying costs, degradation, obsolescence, and more.  

master-inventory-management-6-ways-ebook

How Excess and Inefficient Inventory Management Costs Manufacturers 

Once you source raw materials and components, pay workers to assemble and package products, and manage the overhead along the way, a lot of cash is tied up in each piece of product sitting in your facilities. Those products run the risk of going stale while waiting to be shipped.  

The potential cash sitting in your inventory will turn into cash flow once it’s bought and paid for. Plus, add the costs of inventory space, inventory logistics, and missed opportunities from a lack of free cash flow. It all drags on the ultimate business goal: profits. 

Finding the optimal inventory balance is why inventory management is critical for manufacturing cost efficiency. However, effective inventory management requires accurate and real-time inventory insights, flexibility in costing methods, detailed track-and-trace to move the right inventory, and more.  

Why Tight Inventory Control is So Critical to Managing Manufacturing Costs 

Manufacturers with deep inventory insights and greater control over production, operations, and eventual inventory volumes can unlock significant benefits.  

  • Real-time inventory visibility and automation for reporting and other processes streamline inventory operations, reduce waste, and free up cash through better decision-making. 
  • Optimized inventory levels reduce carrying costs, and cost savings are easy to find with improved forecasting. 
  • More flexible, nimble inventory strategies – enabled by increased inventory visibility and accuracy – result in faster responses to market changes to give you a competitive advantage. 

6 Ways to Improve Inventory Management 

Less inventory always seems better, but maybe your manufacturing operations would be optimized with more inventory. It’s hard to tell until you have improved inventory management capabilities through visibility, timeliness, analytics, agility, and speed.  

Download “Master Inventory: A Winning Strategy to Optimize Stock & Boost Profits” to explore six ways manufacturers can improve inventory management. You’ll learn how to get up-to-the-minute inventory accuracy, avoid buffer stock, increase financial agility, and more.