Originally published on Katana MRP blog.

Inventory management is typically not something that gets people excited. It requires setting up a good process and tediously following routines in place to keep inventory levels accurate. Weak inventory management often leads to:

  • missed delivery terms and unhappy customers
  • increased warehousing cost and tied up cash due to excess inventory
  • constant problems with syncing material purchasing and production orders

Solution to problems above is neither costly nor complicated. Here are solutions to three typical mistakes small manufacturers make with their inventory management.

1. Do not invest too much in inventory

Having a high level of inventory might help you avoid out-of-stock situations. However, you end up tying up your cash in excessive inventory and increasing your warehousing cost. Depending on your products you might also face expiration problems or need to offer discounts once the season is over. …

Originally published on Katana MRP blog.

Spreadsheets are everywhere. They are probably the most frequently used tool in the majority of companies and business processes. Most small manufacturing businesses start off with using spreadsheets for sales order tracking, manufacturing planning, and inventory management. And it’s ok. But only at a micro scale.

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As your business grows, you will quickly run into all sorts of trouble if you continue managing your inventory in spreadsheets. Spreadsheets are not scalable. You will soon lose sight of your inventory levels on-hand, amounts expected from suppliers, slow-moving inventory, and so on. …

Originally published on Katana MRP blog.

SKU (Stock Keeping Unit) is a unique code that you use to identify every inventory item in your warehouse. Inventory management using SKU codes helps you easily track your inventory items and their variants (e.g. color, size) in inventory lists, invoices, manufacturing and purchase orders.

1. Setting up your SKUs

SKU code should help you identify the exact product variant you are looking for. Therefore, you should incorporate information on color, type, size and other similar attributes into the SKU. …

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