How Manufacturing Management Software Can Aid The Supply Chain Industry
You can read this article in 5 minutes
From the ship, which ran aground and blocked the Suez Canal - one of the world’s most vital shipping lanes, leaving more than 100 other ships stuck, to the problems with semiconductors in the automotive industry - we can tangibly experience the “Just in Time” method of managing inventory and/or production. This inventory management style – also sometimes referred to as the Toyota Production System (TPS) means a business must consider potential variables in the manufacturing process – such as inclement weather delaying receipt of inventory materials, labour strikes or supply shortages. But unless a company has steady production, high-quality output and stable suppliers, there is always a danger of using up all supplies and getting many customer complaints because of delays in the supply chain.
Large companies rely on technologically advanced ERP modules. They are often in one cloud system, so their production schedules are automatically connected, and the communication is on a higher level.
It is otherwise with the hundreds of small companies at the bottom of the manufacturing ladder. They are responsible for delivering components for bigger producers, so there is a heavyweight on their shoulders because the smooth functioning of the supply chain and the speed depend on them. From liability insurance to seamless software, they must work flawlessly, and manufacturing management software can help to achieve that.
Manufacturing Management Software is crucial for the supply chain industry.
Once we agree that small-sized companies are a vital element in the supply chain industry, it is possible to point out how manufacturing management software helps them daily.
1) Thanks to software tools, such as Prodio, small businesses can get early indications of bottlenecks and take corrective actions to avoid costly mistakes. When you use manufacturing management software, you can anticipate and resolve potential problems before they get out of control because your decisions are based on information that is comprehensive, accurate and up-to-date. What’s more you are able to:
- Make an efficient plan based on real-time data from the shop floor; you can manage your entire workshop from your smartphone or tablet – there is no need for you to be present on the shop floor. This speeds up the whole process in the chain industry.
- Flexibility moves an operation around the planning board – either forwards/backwards along the timeline or to different resources. Reduce costs by minimising stock and inventory and increase resource efficiency.
- Use real-time view (even in micro-companies); This helps in dispatch management or when you need to adjust delivery times.
2) Reduce the number of complaints in processes. In most cases, it turns out that the problem isn’t in poor quality or efficiency but mainly in huge losses made due to chaos in communication. The prospect of accepting a complaint and doing things once again seems costly and daunting. But the consequences can be even worse. It’s not rocket science to calculate that a double job means cut margins and zero or below acceptable profit. Emergency delivery of raw materials, because something has to be produced once again means that you have to adjust resources. It is becoming more common practice: bigger producers order smaller batches of products, so there are many smaller orders at the same time. This could lead to mistakes and chaos if a company still runs on pen and paper or doesn’t have a proper system in place.
That’s how manufacturing management software helps small companies. First of all, it tracks the raw materials used in each step, the flow of materials into and out of each job step, and the finished goods after the final step. It also offers organization and order: all project files are in one place, including photos, drawings, technical documents, so there are fewer mistakes.
Today manufacturing is based on perfecting components, so it is important to stay up to date and have the ability to reduce the training time of new employees. When you have a product database, you can keep the tribal knowledge and eliminate mistakes, i.e. produce old self-assemblies instead of the new ones.
3) Large manufacturing companies can use B2B modules to make online orders quickly. Sales departments can monitor the progress/ status of orders and speed up/ delay delivery time of raw materials.
In Industrial Revolution 4.0 and Just-In-Time management strategies, micro and small-sized companies must streamline their production process with modern tools. Sometimes small workshops are invisible in the chain industry, but they are as important as the bigger players: they are responsible for delivering key components as subcontractors. If they want to strike an effective balance between the demands of meeting delivery dates and managing workflow efficiently and economically, there is no better solution than simple manufacturing software. Without a seamless system in place, it would be hard to stay competitive because many chain delivery issues can result in one big headache if not kept in check. In addition, simple manufacturing software helps to manage floor-level operations. It is still a modern technology but within your reach.