What does your manufacturing company do to prepare for the busy seasons? Do you create a plan in advance, estimating the amount of inventory and product to have on hand based on sales projections? Or do you just go with the flow of demand, adjusting your sails only when you see proof of stronger demand waves?
Experts are predicting the end of 2015 to be busy. The holiday season always sees a surge in demand, but as the economy continues to improve, analysts expect this holiday season to be busier than ever. While the promise of a busy season may seem like good news, to the ill-prepared manufacturer, it can cause a fair amount of stress.
The Importance of Preparing Your Manufacturing Operation for Demand Changes
Preparation and planning is key if you are looking to survive upcoming busy seasons unscathed. Starting with sales forecasting and inventory planning is essential, especially if your company is prone to understock and overstock situations. However, simply focusing on forecasting and inventory planning is not sufficient enough. In order to truly be prepared for the upcoming busy season, manufacturers need to evaluate their entire operation and pinpoint potential problem areas.
What may seem like a small or inconsequential inefficiency now will only compound into a bigger problem as demand increases, leaving you scrambling to fix an issue that you have neither the time nor resources to fix. By dedicating your time, attention and resources now to inefficiencies that may hold up your operation later, you are ensuring successful at the end of the busy season.
How ERP Software Can Assist In Preparing for Changes in Demand
Technology is often overlooked when it comes to planning for the future. Many companies tend to rely on spreadsheets and their own calculations to get an idea of what the next 3-6 months looks like for the business. However, with the right tools and technology, manufacturers can improve their forecasting efforts significantly and more accurately predict what’s ahead. While no one can predict the future, certain tools, such as ERP software, can certainly help.
Manufacturers have relied on enterprise resource planning (ERP) software for years to boost productivity, improve efficiency, and strengthen inventory management. Designed to help manufacturers keep up with orders and ensure they have enough inventory to fulfill orders in a timely manner, ERP software can streamline order fulfillment and give manufacturers a leg up over the competition. With built-in forecasting and sales and inventory projections, ERP software can help manufacturers develop an effective plan for meeting demand increases, as well as alert manufacturers of inefficiencies that may cause delays in production and distribution. Manufacturers can even use ERP to determine a way to reroute goods should a disruption occur in the supply chain during high volume seasons.
ERP streamlines operations during busy times, allowing manufacturers to effectively meet customer expectations without experiencing any major inventory or operational disasters. Learn more about the benefits of manufacturing ERP software. Give us a call to discuss your particular situation and receive some insight into how you can prepare for the busiest season of the year.