Canadian Manufacturing

6 Reasons Manufacturers Need Inventory Management Software

by Emily Newton, Editor-in-Chief, Revolutionized   

Manufacturing Operations Research & Development Technology / IIoT Infrastructure inventory management management software manufacturing management


Once you know the benefits, you understand why manufacturers need inventory management software to run optimally.

Wikimedia Commons.

For manufacturers, managing goods comes with the territory but can be difficult without the appropriate inventory management software. Undoubtedly, you’ve come across such a system before and may even be using one already within your organization. While the technology is simple — helping plan and organize manufacturing and production tasks — it’s still important to understand why it’s in place and what benefits it has to offer.

Once you know the benefits, you understand why manufacturers need inventory management software to run optimally.

1. Enables Automation
Spreadsheets and similar data-entry tools require manual data entry, which can slow operation in many ways. It can also lead to poor accuracy and information quality problems, as mistakes are often inevitable.

Inventory management software eliminates the manual aspect while simultaneously improving accuracy and efficiency. Because it’s much faster at processing and handling data, it results in real-time information streams — something impossible with manual input.

2. Streamlines Operations
Due to the real-time information abilities and direct integrations with other platforms like e-commerce, inventory management software can vastly improve an entire operation’s efficiency. Direct integrations streamline processes by keeping data in one place or by allowing data sharing across the organization. Furthermore, it helps improve communication and transparency.

Inventory alerts are at the heart of highly-fluid and successful operations, as they provide new ways to deal with events. For example, they can assist with sales, help maintain control of processes and help maintain proper organization during a busy selling period.

3. Is a Lean Staple
Lean manufacturing principles and tenets align with the inner workings of inventory management software. The primary idea behind lean is to enhance productivity by reducing waste and wasteful tasks significantly. By implementing inventory management tools, you’re naturally moving toward a clean operation, thanks to its streamlined and organizational benefits.

Adopting smart technologies like IoT can exponentially boost the benefits as well. Essentially, it reduces many manual and repetitive processes and replaces them with data-driven automation hardware.

4. Saves Time and Money
Manufacturing is competitive but also highly dependent on outside factors such as market or consumer demands, supply changes and so forth. These events are not just problematic because they’re challenging to deal with but can also be costly, especially if something goes awry.

Inventory management software can help deal with these events and save money by efficiently using what’s available. For example, it monitors how much of a material it needs for production and how much is available. It can also help manage that supply — ordering more or an alternative when supplies are low. By the time a shortage appears, you’ll already have pivoted to a new strategy.

5. Delivers More Insights
Information is the best way to learn more about an operation, individual tasks and the market itself. For instance, you could see what supplies are in high demand and need efficient usage to reduce waste. But all of that data flowing in — and out — enables smarter, more contextually-based decision-making with practical insights.

Waste tracking, equipment health and usage, procurement, sales tracking and market changes are all elements software can monitor, report on and digest to make split-second decisions.

Inventory Management Is Key
Inventory and goods management is a much more significant component of manufacturing than many would like to admit, which is why it’s crucial to have the right inventory management software in place. It has many benefits but can also contribute to a more efficient and accurate overall operation thanks to direct integrations with other platforms and services.

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