Thursday 03/14/2019

What to Consider BEFORE Choosing an Inventory Management System

Akta Parikh is a Senior Associate at Corrigan Krause.

A manufacturing company’s inventory includes goods in various stages of production; from raw materials to finished goods, assembled and ready to ship to customers. Due to the complexity and frequency of manufacturing processes, a management system can provide benefits for the organization, assembly and production of goods.

Regardless of size, having an inventory management system is critical to the success of a business. It provides various services catered towards optimizing cost, tracking production and overall ensuing customer satisfaction. Because of the wide variety of inventory management systems on the market today, a company should consider several factors before investing.

Highlighted below is a list of factors that will help ease the research process and ultimately help you choose the best inventory management software for your business.

Determine Goals

First, it is important to determine goals and establish guidelines of what your company wants the inventory software to accomplish. Whether that be creating and organizing multiple work orders, generating purchase orders or estimating costs, it is vital to create these guidelines before investing in a software system. Every manufacturer is different, so it is critical to consider what value a system would provide for your company. After guidelines are set, practical factors should be considered, such as economical value, proper integration with existing programs, scale and usability. Overall an inventory management software should help grow your business and streamline production.

Functionality

Functionality should be a top priority when making your decision. It is important to consider the features of a software program and if these features align with your goals and business model. With the rise of technology, the program should be easily accessible and provide real-time updates.

Lastly, software can improve production planning and warehouse management, allowing companies to easily track stock in multiple warehouses and in multiple locations. It allows the user to locate stock easily using barcodes, saving them time and ensuring an accurate prediction of cost and sale of finished good. It also reduces overstocking and triggers a reorder when supply is low.

In manufacturing, the supply chain is the backbone of a business. Therefore, investing in a high- functioning inventory management software should be an important factor when optimizing processes and reducing cost. Manufacturing is one of the specialty areas at Corrigan Krause. If you have any further questions about an inventory management software or the impact it would have on your business, reach out to a member of our team!

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