How Will Holiday Sales Reshape Your Manufacturing Processes?
Manufacturers have a lot of people to satisfy from customers to distributors to employees. Whether made-to-stock (MTS) or make-to-order (MTO), products must be precise and high quality to satisfy demanding customers.
Right now, you are probably watching key performance indicators (KPIs) to see how well business is faring during this busy holiday shopping season. Where do you stand so far? How will holiday sales orders reshape manufacturing processes? If you are finding gaps or friction, here’s how to solve these complications in the new year.
Feel the Chaos?
If you think it’s hectic in the office area, how chaotic is it in the manufacturing and warehouse areas? We are right in the thick of the holiday season. Many businesses are feeling the chaos from the front office to the warehouse docks. Even without solid KPIs, you must have a gut feeling about what’s going right and what could be going sideways.
- Has production shut down?
- Is inventory short or quality lacking?
- Is there an increase in returns due to poor quality manufacturing processes?
- Has labor and scheduling become complicated or spotty due to seasonal vacation time?
- Could overtime be eating into profits?
- Will this be a profitable year?
This time of the year is busy for many manufacturers and, quite often, a great opportunity to build significant profits. The key is not getting side-tracked by inventory, manufacturing or other complications. If you are feeling the chaos and concerned about the bottom line, then it’s time to invest in the right business process management technology.
Put Fingers on The Pulse of Business All Year Long with Microsoft Dynamics for Manufacturing
Whether you utilize MTS or MTO manufacturing processes, or a combination of both, you are still delivering products to an increasingly fickle consumer. Product design and quality, price and timely delivery are paramount to building customer relationships. Strong inventory management, manufacturing processes and customer response are essential for strong profits, yet difficult to manage when using disparate business management systems. Put fingers on the pulse of business all year long by replacing outdated software with more modern solutions.
Many manufacturers are turning to enterprise resource planning (ERP) systems to manage all of their business operations. A single, integrated business system is much easier to learn and use than many specialty software programs. While there’ is no one-size-fits-all business system, today’s technology can be easily tailored to address unique operational needs.
Microsoft Dynamics 365 was designed specifically for manufacturers to pick and choose which features and functionality they need. Right out-of-the-box, this Microsoft business application manages financial and accounting procedures, inventory, lean manufacturing and distribution processes, as well as other common operations.
In addition, manufacturers can choose industry-specific features such as an MO-SO Link that directly ties a manufacturing order to a specific customer. Create customer-specific Bills of Material to ensure that the discrete manufacturing processes include the customer’s chosen features or product options. Raw material requirements planning and forecasting features highlight trends for MTS operations. With this insight, you can maintain appropriate inventory levels, so as not to over-buy inventory or risk stock-outs, and still satisfy customer orders.
Strengthen Manufacturing Processes to Ensure a Profitable Future
As you get through this chaotic holiday season, watch the metrics for labor productivity, manufacturing quality and profit margins. Identify the friction or complications and learn how a more efficient business management system can resolve these issues.
It’s time to streamline manufacturing processes to ensure a profitable future. Contact OTT, Inc. for more information about the ERP systems available. See how they can be customized to build profits during the holiday season and throughout the year and help manufacturing companies manage operations from the shop floor to the supply chain and customer service.