How Inventory Management Can Help Optimise Manufacturing

Inventory Management is a great solution for manufacturing companies that are looking to optimise their operations and minimise their waste, but the idea of it can be overwhelming, especially for established companies. So how do you get started?

Why is Inventory Management Important?

By properly tracking inventory, companies are able to identify which stock to order, how much is needed, and when it’s required so that the manufacturing line runs smoothly and orders are produced on time.

Once turned into products and sold, inventory becomes revenue, but until then it costs money and ties up cash flow. By keeping only the inventory that your business needs, and preventing it from becoming out-of-stock, you will be able to fulfil orders on time, save money, and raise profits.

By carefully managing inventory stock, it also allows businesses to keep fewer materials on site, decreasing costs, and reducing the chance of holding obsolete products.

What are the Challenges of Inventory Management?

Correctly managing inventory requires some expertise. You need accurate stock levels, clever processes, and good-quality tracking software. Your business needs to be able to adapt the inventory management to flex to changing customer demand, and optimise storage space to help ensure products are easy to find and track.

How Kanban Inventory Management Can Help

Diamond Industrial offers the solution of Kanban Inventory Management to our manufacturing clients. By aligning production with customer demand, Kanban helps companies produce products efficiently and avoid unnecessary downtime. It is popular among our clients because it offers:

1. Improved Inventory Visibility
With our Kanban bin system, inventory levels are always visible in real time.

2. Reduced Waste
By maintaining optimal inventory levels, our customers can reduce excess inventory holding costs, and ensure that valuable warehouse space is used efficiently.

3. Bottleneck Identification
When implemented correctly, Kanban can help to identify and eliminate bottlenecks in the production process, reducing the potential for defects and wasted materials.

4. Production Efficiency
Kanban uses a pull system, where materials are restocked only when they are needed. This ensures that manufacturing companies produce just-in-time (JIT), reducing overproduction and associated costs.

5. A Streamlined Reordering Process
Diamond’s Kanban Inventory Management simplifies the reordering process for fasteners and fixings, reducing the risk of human error, and ensuring that materials are always available when needed.

6. Flexibility and Adaptability
Our Kanban Inventory Management is a flexible system that can be adapted to suit the unique needs of each manufacturing company. Whether you produce automotive parts, electronics, or any other product, our Kanban system can be tailored to your specific requirements – and it grows and evolves with your business.

In manufacturing, optimising inventory management is essential for success. Our Kanban Inventory Management service offers a systematic approach to achieving this goal. If your manufacturing company is looking to take its inventory management to the next level, get in touch