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How do you leverage MES to support inventory management in a multi-site or global operation?

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Inventory management is a vital function for any manufacturing operation, especially when it involves multiple sites or global markets. You need to track and optimize the flow of raw materials, work-in-progress, and finished goods across your supply chain, while minimizing costs, waste, and risks. How can you leverage MES (manufacturing execution system) to support your inventory management goals? Here are some ways that MES can help you improve your visibility, accuracy, and efficiency of your inventory processes.

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Sree Harsha Kunigal

Associate Director at Cognizant Technology Solutions

1 Integrate with ERP and SCM

MES can integrate with your ERP (enterprise resource planning) and SCM (supply chain management) systems to provide real-time data and feedback on your inventory levels, locations, and movements. This way, you can synchronize your production planning, purchasing, and distribution activities with your actual inventory status, and avoid overstocking, understocking, or misplacement of inventory. You can also use MES to automate inventory transactions, such as issuing, receiving, transferring, or adjusting inventory, and reduce manual errors and delays.

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Anthony Papadopoulos, PMP, MBA , MESA

Merck Project Manager (M&A)
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I agree the MES can do all that but what system will supply the information to MES? Some MES platforms have built in inventory movement but most likely the inventory movement will come down from either SAP or SCM/WMS platform. The decision from the business and guidance from the consultant should be how the information is coming down to MES and what does MES do with the information and how and when does it send the information back up for either booking, material replenishment, etc.

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2 Implement traceability and quality control

MES can also help you implement traceability and quality control measures for your inventory, which are essential for compliance, safety, and customer satisfaction. You can use MES to capture and store information on the origin, history, and destination of each inventory item, such as batch number, supplier, date, time, location, and operator. You can also use MES to monitor and record the quality parameters and test results of your inventory, such as weight, dimensions, color, defects, or performance. This way, you can identify and isolate any faulty or non-conforming inventory, and prevent it from reaching your customers or affecting your reputation.

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Anthony Papadopoulos, PMP, MBA , MESA

Merck Project Manager (M&A)
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I believe the ultimate goal should be release by exception. All manufacturing parameters are digitally met and no exception in the EBR, then the batch should be electronically released by either an electronic check or final QC checkbox mark, depending on the facility requirement.

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3 Optimize inventory layout and movement

MES can also help you optimize your inventory layout and movement within and between your sites, to reduce waste, space, and transportation costs. You can use MES to analyze your inventory data and patterns, and identify the optimal locations, quantities, and frequencies for storing and replenishing your inventory. You can also use MES to coordinate and control the movement of your inventory across your sites, using RFID (radio frequency identification), barcode, or other technologies. You can track and verify the arrival and departure of your inventory shipments, and optimize your routes, schedules, and modes of transportation.

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4 Enable inventory collaboration and visibility

MES can also enable you to collaborate and share your inventory information with your internal and external stakeholders, such as managers, workers, suppliers, and customers. You can use MES to create and access dashboards, reports, and alerts on your inventory performance, such as inventory turnover, accuracy, availability, or utilization. You can also use MES to communicate and exchange data with your partners, such as inventory orders, confirmations, or invoices. This way, you can improve your inventory transparency, accountability, and responsiveness, and enhance your customer service and satisfaction.

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5 Leverage inventory analytics and intelligence

MES can also leverage your inventory data to provide you with analytics and intelligence that can help you make better decisions and improve your inventory outcomes. You can use MES to apply advanced techniques, such as artificial intelligence, machine learning, or predictive analytics, to your inventory data, and generate insights, recommendations, or forecasts. For example, you can use MES to predict your inventory demand, supply, or consumption, based on historical trends, market conditions, or customer behavior. You can also use MES to identify your inventory opportunities, risks, or anomalies, such as inventory optimization, reduction, or replenishment.

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6 Keep up with inventory challenges and opportunities

MES can help you keep up with the changing and complex inventory challenges and opportunities in the global manufacturing environment. You can use MES to adapt and scale your inventory processes to different sites, regions, or regulations, and comply with the local standards, customs, or preferences. You can also use MES to innovate and improve your inventory processes, using new technologies, methods, or models, such as IoT (internet of things), blockchain, or circular economy. By leveraging MES to support your inventory management, you can gain a competitive edge and achieve your operational excellence.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Sree Harsha Kunigal

Associate Director at Cognizant Technology Solutions
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For inventory tracking there are multiple COTS products, having lot of capabilities in comparison to MES platform. Infact those applications can even track inventory at line level, cell level etc. To minimize the burden of investments and managing limited functionality in MES, it is a good practice to integrate MES with such inventory management applications and consume the data as required. For those customers who don’t have such investments on specialized inventory management solutions, yes MES can do the job. As a consultant one should find a right balance.

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How do you leverage MES to support inventory management in a multi-site or global operation?

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1 Integrate with ERP and SCM

2 Implement traceability and quality control

3 Optimize inventory layout and movement

4 Enable inventory collaboration and visibility

5 Leverage inventory analytics and intelligence

6 Keep up with inventory challenges and opportunities

7 Here’s what else to consider

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