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  • Digg it UP - Avoiding Obsolete Inventory in Manufacturing - An ERP Solution

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    re produced in excess and that remain in on-hand stock.

    Typically, at the base of these inventory management problems is a general lack of knowledge or information of what and how much is in i

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    With all the hurdles placed before manufacturers today to compete in the global economy (governmental, competitive, environmental, etc.), the last thing a company needs is to do the sort of actions on its own that work against the operation. Yet, this happens everyday when excess or obsolete inventory write-offs occur. These costly supply-chain problems result in the unnecessary fraying of bottom-line profits due to wasted materials, wasted time, and wasted opportunities to move parts/products out of the shop before they reach the end of their usefulness for a customer. However, the cause for these manufacturing inefficiencies is quite common from shop to shop: Poor demand-management practices lead to poor inventory management. All too often, inventory managers lose track of those parts that are produced in excess and that remain in on-hand stock.

    Typically, at the base of these inventory management problems is a general lack of knowledge or information of what and how much is in in

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    ts own that work against the operation. Yet, this happens everyday when excess or obsolete inventory write-offs occur. These costly supply-chain problems result in the unnecessary fraying of bottom-line profits due to wasted materials, wasted time, and wasted opportunities to move parts/products out of the shop before they reach the end of their usefulness for a customer. However, the cause for these manufacturing inefficiencies is quite common from shop to shop: Poor demand-management practices lead to poor inventory management. All too often, inventory managers lose track of those parts that are produced in excess and that remain in on-hand stock.

    Typically, at the base of these inventory management problems is a general lack of knowledge or information of what and how much is in i

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    ne profits due to wasted materials, wasted time, and wasted opportunities to move parts/products out of the shop before they reach the end of their usefulness for a customer. However, the cause for these manufacturing inefficiencies is quite common from shop to shop: Poor demand-management practices lead to poor inventory management. All too often, inventory managers lose track of those parts that are produced in excess and that remain in on-hand stock.

    Typically, at the base of these inventory management problems is a general lack of knowledge or information of what and how much is in i

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    se manufacturing inefficiencies is quite common from shop to shop: Poor demand-management practices lead to poor inventory management. All too often, inventory managers lose track of those parts that are produced in excess and that remain in on-hand stock.

    Typically, at the base of these inventory management problems is a general lack of knowledge or information of what and how much is in i

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    re produced in excess and that remain in on-hand stock.

    Typically, at the base of these inventory management problems is a general lack of knowledge or information of what and how much is in inventory at any given moment. In other words, there is not a complete system accuracy in inventory, and this inaccuracy, in turn, leads to mistakes on many levels—mistakes in purchasing, mistakes in production, mistakes in scheduling. To consistently reduce wasteful inventory excess and obsolescence, there must be an inventory management regimen that instantly shows real-time relationships between inventory purchases and demand variations, inventory locations, and greater cycle counting accuracies capable of rapid turnaround. Today, the best way to fulfill all of these inventory management goals is through the use of a fully integrated enterprise resource planning software system (ERP).

    As it informs the notion of efficient inventory management, ERP software systems improve calculation

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