Managing inventory control has major advantages for food and beverage manufacturers. With proper inventory controls, companies can accurately predict supplies, manage ordering more efficiently, and improve operational performance.
Inventory control also helps to eliminate spoilage and waste, both critical and costly areas to corral.
As seen in the recent Comprehensive guide to key ERP functionalities in foods and beverages, having a sound approach to inventory management is one of the main advantages of a modern enterprise resource planning platform.
Here is a closer look at inventory control functionalities in foods and beverages.
Holistic view of inventory
With the right ERP tool for inventory management, companies gain a real-time view of their entire inventory system. From stock levels to locations to inventory activity, managers can gain a keen understanding of their inventory at a moment’s notice. And with automation tools, companies can also improve the picking, sorting, and operations of the warehouse and its employees.
Using these tools, more accurate decisions can be made in the moment about inventory, ordering, and operations.
Inventory level management
One of the major issues for many food and beverage companies is having the right level of ingredients and raw materials on hand to meet anticipated demand. With inventory controls, companies can hold accurate levels in inventory to decrease overhead costs.
Forecasting improves with better understanding of available products, anticipated orders, and historical trends. Having the right inventory level means not losing out on sales due to a shortage of needed ingredients, too.
With inventory control tools, companies can better assess quality of the products and their vendors. Using quality management tools, inventory management can develop quality assessment measures to inspect and test lots as they arrive and once they are in the warehouse. These tools can ensure that products meet provided descriptions for what was ordered.
Companies can manage their inventories to look for defects, leaks, tears, or other discrepancies soon after acquisition. Doing so ensures that that the right products are available and intact when needed for production.
Perishable items need to be managed carefully while in inventory to ensure they are used in a timely manner so that they are not wasted and that finished products are also consumed in the proper timeframe.
Inventory management tools can track and monitor usage, available products, and ensure that those closest to expiration are used first.
Use data collected and shared by inventory controls to project production needs and schedule work, workers, and equipment. Proper production management leads to increased efficiency and usage of available capacity.
Inventory and warehouse management go hand in hand. Your ERP solution needs to manage warehouse functions and improve supply chain efficiency.
ERP tools can help with bin location, stock transfer, label generation and verification, quality control checks, and movement into, within and through the warehouse. With accurate RFID and barcode tools, companies can improve the speed and accuracy of warehouse management.
At NexTec, we help food and beverage companies identify the right ERP solution to maximize inventory control functionality and improve efficiency. Read our recent study on the food industry to see how NexTec can help your company become more efficient and generate higher profit margins.