Material Inbound: Optimizing operations in a demand-driven world.

A common challenge that many manufacturers struggle when it comes to direct materials (the products that go into your finished goods) 

–   increasing costs due to high inventory levels

– critical out-of-stock situations


Both these results in lost production time, costly plant issues (such as unplanned overtime, production line setups, and tear downs), and high logistics costs. Inventory costs rise when you’re carrying excess inventory in some areas and not enough inventory of the right materials in others. High transportation costs result when expedites are required to cover inventory shortages.


Another problem is long lead times with suppliers that impact responsiveness. Most importantly in today’s environment, you’ll want to ensure a resilient supply process in place, one that provides for continuity of supply and minimizes disruptions to operations and your customers.


The key barrier to optimizing inbound supply processes is the state of your own systems. Companies can have dozens, even a hundred or more separate, siloed enterprise systems or ERP/MRP instances. How can you expect to put in place standards for replenishing components and raw materials, along with consistent processes for your many suppliers, without addressing the fundamental issues of your MRP landscape? 


New age strategy/mechanism  to manage Material Inbound:


Organize Inbound Supply: Your business will require a platform for managing the flow of raw materials, intermediates, parts and components from supply to assembly or manufacturing to final assembly and packaging across your business. Your platform must also include workflows well beyond basic ordering, planning, collaboration, executing and delivering material orders. You’ll also need early detection alerts for exhaust materials as well as ways to identify and resolve to the greatest extent possible.


Communicate Demand to Upstream Tiers: Your business needs consumed materials or parts to be replenished on a regular basis according to real-time data (stock on-hand, stock on-order) to generate accurate order forecasts (i.e. inbound supply requirements). Distributors and vendors will need the ability to view and operate with accurate long-term forecasts so they can plan their capacity and distribution accordingly.


Seamless interaction with the entire team: A world-class inbound supply process will also need a highly capable system that simplifies record keeping and also enables people to stay connected from any device with easy access to data. 


Integrate with books of account: You’ll need a highly responsive platform to make sure material inbound meet your financial implications. A balanced account is not only required when purchase orders are raised, but also when sales return orders are initiated or stock adjustments are made.


Powered by Salesforce, Arka Inventory is a powerful yet simplified cloud platform to streamline your inbounds in 2 minutes. It harmonizes these requirements and brings your business a real zeal. Visit Arka Inventory to know more.





Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
On Key

Related Posts