Advanced Manufacturing Companies Understand the Importance of Supply Chain Visibility
Advanced manufacturers who understand the importance of supply chain visibility also understand how it impacts warehouse management and distribution. Companies who invest in tools such as ERP and warehouse management systems find that not only does it improve supply chain visibility, it also engenders confidence among customers which translates into repeat business.
Supply Chain Visibility a Priority for Advanced Manufacturers
Supply chain visibility seeks to provide accurate information on all of the components leading to the manufacture, shipping, storage, and sales of products. With the right data, you can see every aspect of your business at each point along the way. This in turn results in better forecasting and decision making.
Better supply chain visibility translates into better insight from your managers. Advanced manufacturers know that with the right data, their managers can more accurately forecast demand. Decisions made on data, rather than guesswork, lead to better control over production costs and inventory.
Improvements in Visibility Lead to Improvements in Customer Services
Another benefit of greater supply chain visibility is how it impacts customer service. Nothing is more frustrating to a customer than to hear “I don’t know” or “I can’t tell if we will have that in stock.”
Customers today have come to expect real-time inventory data thanks to advances in retail technology. Manufacturers shouldn’t be far behind their retail counterparts, because meeting and exceeding customer expectations is the key to repeat business. The old truism of 80 percent of your business coming from 20 percent of your customers isn’t far off the mark. The more you can satisfy your customers’ demands, the more confidence they’ll have in your business, and the more they’ll return to buy again.
With better supply chain visibility, you can put your finger on the products your customers request thanks to real-time data. ERP systems, inventory management, and warehousing systems all provide useful data that can help you answer customers’ calls and inquiries faster and better than ever before.
Another benefit from using tools such as ERP and warehousing systems is inventory optimization. Reducing excess inventory can lead to significant savings. Not only will your capital be freed from being tied up in inventory purchases, but you may not need as much floor space assigned to inventory. Warehouse management and inventory optimization tools can help you right-size your inventory to avoid both out-of-stocks and overstocks, two extremes that no company wants to face.
Inventory optimization means having the right products in at the right time. No one wants to face a customer anxious for a delivery with the bad news that the product is out of stock. Inventory optimization includes right-sizing, or having the right products in stock in the appropriate amounts to meet anticipated demands.
In order to meet the anticipated demand, you need accurate data. Your managers can only optimize what they can measure. With a solid inventory and warehouse system in place, supply chain visibility improves, and forecasting and management improves along with it.
ONE Software Solution to Improve Supply Chain Visibility
Tools such as Sage 100 integrated with other warehouse products can improve supply chain visibility. Advanced manufacturing businesses know that supply chain visibility starts by investing in software that links systems for optimal data usage. ONE Software Solutions can help your business improve visibility and inventory management for a more profitable business. Contact us today or call 877-722-6261.