As a default, manufacturing companies tend to house their entire inventory in one big warehouse space, either on-site or off-site. This “accounting-based” inventory system gives the illusion of simplicity because counting can take place in one central place. However, centralized inventory has some major drawbacks, including excess transportation time to get items and raw materials to on-site destinations.
With a point-of-use management system, we deliver just the quantity of product you need, where you need it, when you need it. Materials and information are stored in close proximity to where they’ll be used so they can be accessed more quickly and with far fewer steps. It’s a more efficient and economical system, giving you clarity into whether your usage matches your inventory.
Even with an ERP system, tracking inventory from place to place is filled with challenges. Without the need to track movements of materials and items from warehouse to receiving dock to inspection to the factory floor, you’re free of the burden of management and the confusion that can arise. It gets rid of the intermediate steps between the shelf and the workstation and could eliminate the need for inspection altogether.
A daily operator is a valuable tool in your goal to downsize inventory. The expert when it comes to inventory usage is the person who uses items every day. With point-of-use inventory, your excess is driven down as a result of hands-on knowledge as well as space limitations.
With point-of-use inventory, you can get rid of the extra processes involved in getting items from warehouses or off-site facilities. Eliminate management roles, facility needs and labeling requirements—all ways to streamline your manufacturing process and render it leaner.
Our experience with point of use gives us an intelligent perspective. We can advise you on how to implement point-of-use inventory—including optimal storage allocation, shelving choices and labeling best practices—as well as successful change-management techniques.