Effective inventory management can help manufacturers improve productivity, profitability and competitiveness, says Dave Cullern, Key Account Director at Rubix UK, Ireland and Iceland.

Evolving customer demands, fierce global competition and the rise of digitalisation are characteristics that have had a direct impact on manufacturing in recent years – changing the landscape of the industry. While this evolution has undoubtedly created challenges for many manufacturers, it has also presented opportunities to get closer to operations, maximise efficiency and strengthen the bottom line.

One area where this is being felt is in inventory management. Every manufacturer knows the importance of keeping their inventory in check, particularly where the solutions that facilitate the ongoing maintenance and repair of equipment and machinery are concerned. Knowing what materials are on hand at any moment can streamline the process, allowing plants to run more smoothly to meet shifting customer demands and become more nimble, more productive and more efficient.

In addition to improving responsiveness and ensuring production can continue smoothly and effectively day-to-day, careful control of inventory storerooms directly impacts the bottom line. By optimising levels of stock, stronger levels of cash flow can be maintained as money isn’t tied up unnecessarily in materials.

However, as we move towards this optimised future, data is key. Here, let’s explore how manufacturers can harness and interpret their data to provide operators with a complete, real-time understanding of plant needs to deliver for customers and strengthen business performance.

Understanding plant needs

 Traditionally, an understanding of manufacturer needs has been held by operators on the factory floor – experienced individuals who have built their knowledge over many years. In modern manufacturing environments, however, where agility is essential, a digital approach can be advantageous. Data can help manufacturers make decisions quicker and more confidently, directly impacting productivity and efficiency, as well as profitability and competitiveness.

Where inventory management is concerned, tools such as inventory profiling can be used to understand what stock is available already on-site as well as what is needed day-to-day to fulfil operational requirements. In essence, inventory profiling is about more than understanding what product is sitting in the storeroom at any one time. Rather, it’s about knowing what is required of manufacturing operations today and in the future – and having the right materials on hand to facilitate that. This means building an in-depth understanding of everything from contractual obligations through to seasonal trends – all of which will impact what materials are required to keep machines running smoothly.

Knowing what is needed now and in the future also makes it possible to plan effectively, ensuring those on the factory floor have the materials they need, without committing working capital unnecessarily to stock that isn’t required – taking up valuable space and resources.

The future of inventory management

 Access to real-time data can significantly improve supply chain visibility and, subsequently, stock management. But before the data begins to play a role, a manual process will make way for the future of inventory management.

By carrying out an audit of their current stockrooms, manufacturers can often begin to recognise improvements instantly. This presents an opportunity to identify dead stock and obsolete inventory and, by liquidating or phasing out these items, manufacturers can release working capital which can be redeployed elsewhere.

Working with specialist partners, such as Rubix, can support this process, with inventory profiling bringing additional technical expertise and specialist knowledge to the management of industrial maintenance and repair products. By completing a full analysis of products held, classifying them all and identifying fast- and slow-moving items, Rubix inventory profiling creates a complete picture of stockrooms.

Through the process, manufacturers will also be able to identify the correct minimum and maximum stock levels to reduce obsolete or excess products, as well as ensuring essential products are always available when needed. For modern manufacturing plants, there can be no room for compromise in product availability as this could inadvertently create risk and lead to periods of unplanned downtime – working counterintuitively to the goal of working capital reduction, improved agility and greater competitiveness.

In practice, inventory profiling ensures manufacturers never run out of critical items, as well as having the correct maintenance and repair products on the shelf at any one time. In addition to streamlining inventory management, reducing the number of products and volume of stock on hand can simplify the supply chain by potentially reducing the number of suppliers manufacturers rely on to fulfil their operations.

Working with specialist partners

In the past, achieving streamlined stock levels, keeping operations running smoothly, and managing working capital, may all have seemed like conflicting goals. Now, for modern manufacturing plants to remain competitive and agile, it is essential for these goals to align and complement one another. Like never before, the creaking of overstocked storeroom shelves will signal the time for change.

Tightly controlled inventory, through the implementation of inventory profiling, makes this achievable for every manufacturer. When undertaking a change of this scale, however, it is crucial for manufacturers to work closely with their supply partners. The sharing of expertise and support will not only streamline the process but also significantly reduce risk.

As the largest supplier of industrial maintenance, repair and overhaul products and services in Europe, Rubix supports customers across the manufacturing landscape – including those in the traditional manufacturing, automotive, food and beverage, and energy sectors. By working with individual customers to understand their specific requirements where inventory management is concerned, Rubix can develop and implement solutions which deliver a tangible and dependable impact.

To discover more about how Rubix can support your business, visit: www.rubix.com.