In the manufacturing industry, supply management is a crucial process that can significantly impact your company's bottom line. This blog post will discuss some of the most important things you should do as part of your supply management strategy.
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1) Understand what you need to order and when
One of the most important aspects of supply management is making sure that you order the correct items at the correct time. This can be difficult to do if you don't clearly understand your production process and what components are necessary for each step. Make sure you have a good inventory management system in place so you always know what needs to be ordered when it needs to arrive and how much stock you should keep on hand. If possible, try to plan your orders with manufacturing CRM several months in advance, so you have plenty of time to make any changes if necessary. You also want to avoid ordering too much or too little stock, as this can lead to wasted money or shortages later on.
2) Create an inventory list with quantities and sources
Once you understand what needs to be ordered, it's important to create an inventory list with quantities and sources. This will help you keep track of where each component is coming from and how much stock you have on hand. It can also be helpful to create a "master list" that includes all the components necessary for your entire production process. This way, you can easily see if any items are running low or out of stock. If possible, try to order some key components from multiple suppliers, so you have a backup in case one supplier runs into problems. And always make sure you have a good relationship with your suppliers, so they are willing to work with you if there are any delays or shortages.
3) Schedule deliveries for more than one month at a time
One of the biggest problems with supply management is scheduling deliveries for more than one month at a time. If you can, try to order your components 30-60 days in advance, so they have enough time to ship out on their own schedule. This may require extra planning and communication on your part, but it will pay off later by avoiding last-minute delays or shortages. Some manufacturers also create "buffer stocks" that are held back from each order just in case there are any future issues with production or shipping schedules down the road. Having these buffer stocks can help keep your company running smoothly even if something goes wrong further along the supply chain.
4) Check inventory levels regularly
One of the most important parts of supply management is keeping track of your company's stock levels. You should always check to make sure that you have enough components on hand for upcoming projects and avoid any issues with running out or shortages later down the road. Even if you don't think about it often, checking in at least once a month can help keep everything going smoothly, even when schedules get hectic. Some manufacturers also use forecasting software that automatically checks current inventory against future demand to predict how much additional stock will be necessary to meet requirements without any problems.
In conclusion, supply management is a crucial process that can significantly impact your company's bottom line. By following these four tips, you can help make your supply management flow smoother and avoid any costly delays or shortages down the road.