What is most important for a profitable business? It’s ongoing operations. Imagine what happens if your business continuously got stop unnecessarily because of small management oversight. Your business will soon reach its decline stage. Hence, Keeping the operations on is a must, and what plays a major role in that, Raw material, equipment, tools which we popularly called Inventory.
We indeed need sufficient inventory for ongoing production and business proceedings, but at the same time, we have to be cautious about the overloading of it. What we need is up-to-date Inventory Management to maintain the balance between Maximum and Minimum Inventory levels.
What is Inventory Management?
Inventory management, inventory control, and stock management are all terms for the same thing: ensuring you have the correct inventory at the right time for the right price. At the end of the day, it’s a delicate balancing act.
Inventory Management is the last, most important link in the supply chain within your warehouse or supply closet.
Why is Inventory Management crucial for Food & Beverage Business?
The importance of Inventory management applies to every business. Still, in some businesses like Food and Beverages, it’s more than important as it asks for a large inventory base, but at the same time, most of them belong to the perishable goods category. So inventory more than a need will increase the wastage and spillage issues and raise the cost of production.
Like all other businesses, Food and Beverage business also has its own set of challenges for inventory management. Let’s take a look at it.
Common Inventory Management Challenges
The most common inventory management issues include having an excess or overstock of spare parts inventory, not having enough stock components, and being unable to identify the items you require on a quick basis. There are also extra issues that some businesses encounter, particularly when it comes to MRO inventory management.
Limited Visibility of Inventory
Consider the consequences of being unable to locate or identify stocks in your inventory: you will be unable to send the goods on time, perhaps jeopardizing your company’s image. Your business’s bottom line will suffer from an incomplete, inaccurate, and difficult-to-find inventory.
Lack of Well-defined Inventory Management Process
When we see a failure in managing the inventory, the basic thing is missing in the process. A well-defined process is a key to successful inventory management. But setting up that process and maintaining it regularly is a very big challenge without a proper system.
Identifying Incorrectly located Materials
The lack of a method to track in-store products/equipment is the primary cause of this problem. Finding a certain product for sales from the inventory takes up a lot of time for the workers, and finding a product among 1000s stored is incredibly difficult. When you choose a material wrong, it not only slows down sales but also lowers client happiness.
Over-Stocking
Purchasing resources without first selling what you have will dramatically reduce your profits. This problem emerges as a result of managers’ poor stock control and management. A few materials will go missing when done manually, and purchasing the same components again will reduce profit.
Stock-out position
Like overstocking, this also is the problem the scenario is reversed. If you have less material than needed, when actual demand arises for the production needs, the material will not be there in the premise, which is called the stock-out position. The same thing can happen with finished goods too. So keeping a low amount of material and finished goods to save the cost is also a challenging and risky situation for the business.
Also Read: Why Should The Food Industry Invest in CMMS Software?
Managing Waste and Deteriorated Items
Maintaining a strong inventory is critical for the timely delivery of stocks. Non-standard techniques used by inexperienced operators result in defective inventory and waste. The costs of inventory waste and flaws are enormous, and they frequently result in dissatisfied customers.
How can CMMS help you Unriddle the Inventory Management puzzle?
Inventory management’s overarching purpose is to optimize inventory (having just the proper levels of parts in stock while lowering purchase costs) for maintenance operations. Inventory management software like TeroTAM can help you achieve your inventory targets faster.
Maximum Visibility to Inventory
With TeroTAM CMMS software, you can keep an eye on each inventory item from a centralized dashboard from anywhere anytime with a cloud-based system. It helps you keep all in and out records of every single item coming to the organization.
Systematic Inventory Management Workflow
Our software can help you set up the Tasks and assign that relevant tasks to relevant employees and teams and assign them the deadlines. You can create a systematic workflow to manage the operations smoothly.
Advance Inventory tracking with QR codes
No need to find a single item for hours and waste your energy on manual search in a bundle of papers and sheets. Assign a dedicated QR code to each item and track assets anytime with any simple QR code scanner, even with your smartphones.
Automatic Reorder Notification
Set reorder points to receive automatic notifications when a predetermined stock level is achieved. When it’s time to buy more parts, you’ll be able to tell right away. It eliminates the guessing, so you don’t order too many parts you don’t require.
Inventory Cycle Counts
Keep track of how many times individual pieces have been reordered, with the option to categorize them by importance. Inventory cycle counts for critical parts can be adjusted to occur more frequently than counts for less significant parts.
On-time Shipment Scheduling
Schedule components shipments to arrive near the time that repairs or preventative maintenance chores are due.
Updated Location Details
Keep track of every part’s location, right down to the bin number and if it’s been checked in or out recently. No more frantically searching a warehouse for the part, you require.
Easy to manage Purchase Orders
Create purchase orders quickly and easily from within your CMMS software to promptly obtain all of the parts you require. This feature makes keeping track of inventory numbers and costs much easier.
Tips for using CMMS for Food and Beverage Industry
Create Workflows to upraise your Productivity
Work order management is one of the most important features of a CMMS. In a nutshell, work order management allows you to submit work to a specific technician immediately and know what work is scheduled for a specific piece of equipment.
Pre-plan your Maintenance with Predictive Maintenance
You can utilize a CMMS to automate preventive maintenance on your equipment, as mentioned earlier. Customizable triggers are one of the most valuable features of a CMMS. These triggers enable you to tailor preventative maintenance beyond the standard “once every period” routine.
Automated maintenance can help you stay compliant with regulatory goals while also extending the life of your equipment.
Get rid of Boring Paperwork
Whether it’s equipment or replacement parts, all of your inventory should be transferred to your CMMS. A CMMS may be accessed from anywhere, and you can designate particular areas for all of your equipment to be entered. This makes it much easier to keep track of where your equipment is at all times, which is especially useful if you have different warehouses or manufacturing locations.
Conclusion
TeroTAM’s CMMS software keeps detailed records of your inventory material, so you always know where they are, how much stock there is, how much they cost, and so on. Automatic inventory count updates ensure that you always know what food and beverage items are in stock and when to replenish them.
To learn more, how CMMS software can revitalize your food and beverage business with up-to-date inventory management, contact our expert at contact@terotam.com and schedule your demo now.
