Inventory control and supply chain management are crucial aspects of plant engineering, especially in the medical device industry, where quality, safety, and compliance are paramount. In this article, you will learn how to optimize these processes to reduce costs, improve efficiency, and meet customer expectations.
The first step to optimize your inventory control is to assess your current and future inventory needs based on your demand forecasts, production schedules, and lead times. You should identify the optimal inventory levels for each product category, such as raw materials, work-in-progress, finished goods, and spare parts. You should also consider the trade-offs between holding costs, ordering costs, and stock-out costs, and apply inventory management techniques such as ABC analysis, EOQ model, or safety stock calculations.
Inventory needs should be defined after applying a 9S methodology within warehouses so gaps can be identified and compared with demand projections and future projects tied to the company's vision
The second step to optimize your inventory control is to implement an inventory management system that can track, monitor, and update your inventory data in real time. You should choose a system that is compatible with your existing software and hardware, such as ERP, barcode scanners, RFID tags, or IoT devices. You should also ensure that the system can generate accurate and timely reports, alerts, and analytics that can help you make informed decisions and identify potential issues.
ERP's are extremely useful for agile inventory Management. Nevertheless, adding Tech to chaos is terrible. First thing should be to organize tools, people, layout, SKUs and inventory locations knowing your ABC before implementing an ERP
The third step to optimize your inventory control is to apply lean principles and practices that can eliminate waste, improve quality, and increase value in your production processes. You should adopt a pull system that can synchronize your inventory levels with your customer demand, rather than a push system that can create excess inventory and overproduction. You should also implement continuous improvement methods, such as Kaizen, 5S, or Six Sigma, that can reduce defects, errors, and variability in your operations.
100% agree that this should be the first step and then maintain the continuous improvement culture through Kaizen events, within the inventory managment realm
The fourth step to optimize your supply chain management is to evaluate your suppliers and partners based on their performance, reliability, and compatibility with your business goals. You should establish clear and consistent criteria for selecting, contracting, and monitoring your suppliers and partners, such as quality standards, delivery times, prices, and certifications. You should also maintain regular communication and feedback with them, and foster long-term relationships that can enhance trust and collaboration.
Suppliers are key part of the supply chain, if they are not aligned with the business, no improvement measure will be sustainable. The type of providers that should be used are those that comply with regulations and add value to a cost efficient operation
The fifth step to optimize your supply chain management is to streamline your logistics and distribution processes to ensure timely and efficient delivery of your products to your customers. You should optimize your transportation modes, routes, and schedules based on your demand patterns, location factors, and cost factors. You should also implement quality control checks, traceability systems, and contingency plans to prevent or mitigate any risks or disruptions in your supply chain.
The sixth step to optimize your supply chain management is to leverage digital technologies and tools that can enhance your visibility, agility, and responsiveness in your supply chain. You should use cloud-based platforms, big data analytics, artificial intelligence, or blockchain to collect, store, analyze, and share your supply chain data across your network. You should also use digital tools such as dashboards, simulations, or smart contracts to optimize your planning, execution, and control of your supply chain activities.