What is Production Inventory?
If your business produces a finished good, then you may be familiar with the concept of production inventory. Simply put, production inventory is the amount of goods you have on hand to complete the manufacturing process. It’s all the parts and supplies your business needs to make your product. Production inventory is important to the manufacturing process and therefore important for your business.No matter what the size of your business is, having the right levels of production inventory is important. Here are three things to consider to better understand the important role of production inventory, how it effects every aspect of your business and how to make your business better.
1. The manufacturing process:
Manufacturing is part of the entire supply-chain process. If you have inventory that is used to make products and goods, aka raw materials you are contributing to the traditional supply-chain model. Manufacturing inventory management is an important part of the supply chain and having your production inventory in check is crucial for your manufacturing process.
2. Managing Production Inventory:
Now that you understand a little more about production inventory, let’s talk about helpful ways to manage your inventory. This of course requires care and planning. You always want to have the right amount of inventory at the right time, without having extra laying around or not being used. You also always want to have your inventory carefully organized and tracked so that you know what you have, where its located, and when it’s time to order more parts. You also want to know that the parts and products you’re receiving are always top quality.
3. How VMI (Vendor Managed Inventory) can offer you solutions:
Now that you know more about the supply chain, manufacturing process, as well as the importance of managing production inventory, its time to focus on solutions. You want solutions for your business, solutions for your inventory, and solutions that help your bottom line. You want the confidence that your department and overall business is running smoothly and making you money. Finding the right company to handle your inventory helps you know that you’ve got an extra set of hands to help your business run smoothly. Knowing that your production inventory is handled properly, means knowing your production inventory is easier to manage.
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