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It used to be that enterprise-level Inventory software systems weren't really capable of operating in real-time and be portable whatsoever. Barcode scanners which communicated with the system in real-time had to be hard-wired to the system itself, accessing the database directly to manipulate the inventory data. So-called "wireless" barcode readers were actually "portable data terminals". These handheld devices were (and still are today) used for the collection of off-line inventory data. The device is then plugged into a base station which connects to a computer. The data in the database is then synchronized with the updated data from the portable data terminal.
Real-time updates of data are now possible in true wireless fashion. Inventory software can be developed as an ASP-page-based system running Microsoft's Internet Information Service (IIS) and any number of back-end databases, including SQL Server. The ASP pages talk to the database in direct response to user interaction in a web browser, which is the means for real-time updates to the database.
What this means is that any computer or mobile device capable of hosting a web browser can be used to interact with modern inventory software systems. And if the computer is also wireless, the inventory actions can be both real-time and portable.
What are the main focuses of manufactures when they are interested in inventory systems? For starters they need to know exactly what is on hand at their facilities, when products need to be ordered, when inventory levels become low, where the products are located within the facility and when they need to be shipped.
These are all very valid concerns and inventory software can help organizations with these concerns by allowing them to become more successful in tracking their software and as a business. Companies are presented with a wide variety of options to choose from when searching for the proper inventory system. This article will discuss a few of these options and hopefully it will help your organization make an educated choice on the proper system that can be implemented to provide the most success.
For starters look at your needs and requirements as a whole. Does your organization require real time access to the system, will you need to be able to track the products within your facility and then during the transportation process as it is being moved from your location? Will you decide to implement bar coding and does your process require a FIFO or LIFO system? Maybe you only need a generic canned system if you have a small inventory system or perhaps a system that is tailored to your organizations needs will suit your needs better.
Inventory solutions can take on many forms, from directed picking to kanban and many companies favorite “search and find.” If you are currently working with the search and find method I’m sure you’re aware of all the time and money which is being lost daily. It’s time to implement an inventory solution and help reduce the headache which is associated with your inventory.
There are a variety of solutions available and it is important for shoppers to keep in mind that not every solution is the same. One example may be that your organization needs to track each item as it is delivered and indicate the specific member of your team which checked the item into your inventory. Most out-of-the-box solutions will allow your staff to check the items in but it will not allow you to identify the specifics - a customized solution will allow you to do both.
Think of the out-of-the-box system like an over-the-counter medicine, it treats you for your cold but it might not get rid of all your ailments. The customized solution can be compared to an antibiotic your doctor prescribed which will cure your illness.
An inventory system created by Toyota known as Just in Time has enabled an enormous success for some organizations. Just in Time is an idea that Toyota Motor Corporation founder Eiji Toyoda and Toyota engineer Taiichi Ohno came up with because when asked where parts would be stored due to no warehousing space replied the parts would be at the correct place in the production line at the right time and no sooner.
When organizations manufacture in a facility that contains little warehousing space, it makes it almost impossible to store inventory that is mandatory for production. The JIT theory allows (once workers are aware of how the system works) inventory to be properly ordered as a production run for an item that is needed. This may sound like a simple task but there is a lot more to this process.
Many manufacturers implementing the JIT Software may produce a large number of orders. Each one of these orders needs to be scheduled as appropriated for completion and an on time delivery to the customer. It is then figured what items are need for production, which if any are on hand and what parts are needed to be ordered. Once the information is configured on which items are to be ordered it then has to be figured where they are being ordered from and what methods need to be taken to ensure the product will be delivered and available at the time needed for the production time, no later and no sooner.
Implementing Inventory software created or tailored to fit all of your inventory needs can make a beneficial impact on a business. There are numerous solutions to choose, or that are available when selecting an Inventory Software program to fit your needs. A couple of them include bar code scanning and a kanban system. Implementing a poor inventory system can cause a loss of inventory due to poor tracking, expedited shipping due to no stock or late stock and can cost an organization thousands in revenue.
KanBan system is an electronic card system that makes an accurate count of inventory and alerts the proper department(s) when an inventory item needs to be replenished. An example of how a KanBan system works is; stock of every item sits in a dedicated location with a fixed space allocation. When items are pulled for production an electronic signal goes to the appropriate department detailing which items have been pulled. That department then prepares a purchase order for replenishment of that inventory item so that it is readily available for the next production run.
Implementing Bar Code scanning into your inventory system allows an electronic device to read printed barcodes and input this information into your system. Some vendors offer wireless bar code scanning which can be used by several different scanning devices such as pen type scanners, laser scanners, automatic readers, PDA scanners and of course stationary scanners can be available.
A Kanban system signals a trigger to order inventory once an order comes through an the inventory is withdrawn. The Kanban system is very closely related to JIT (just in time) and Lean manufacturing production. This system works by figuring what needs to be produced, how many need to be produced, when production will start and stop, and where the order needs to be delivered too.
Kanban systems can be very profitable for your business. Many times value is lost in inventory due to the costs of storing, theft, damages and more. Your business can end in up to 50% of your inventory value/cost lost due to these reasons.
Implementing a Kanban system will reduce your inventory significantly while fulfilling the same amount of orders and providing shorter lead times. All this will be done while administering the same service practices for all of your customers. Since a Kanban system reduces much of the inventory, the business becomes much more profitable. The reduction in inventory will also reflect other cost such as labor, space and much more.