If you’re a manufacturer, you’ll know first-hand how inventory forecasting can consume your time and nag away at you. You’ll know all about variable lead times and how much of a headache they can become if not managed correctly; you’ve likely encountered the frustration of when your product’s ready to go, but it’s missing a vital component, or you can recall several times when your service reps got an ear-bashing because your product hasn’t been shipped on time.
What you need is intuitive software that takes care of all of this for you, so you can get back to manufacturing, staying ahead of the competition and delighting your customers with your impeccable service.
Multi-level BOM
To stay competitive and in control, you need visibility of your entire manufacturing process. A multi-level bill of materials (BOM), also known as a nested or indented BOM, reveals all the raw ingredients, components, assemblies and sub-assemblies that goes into making one finished product. If a single level BOM is like one branch on a tree – one parent product and the parts that go into making it below - then a multi-level BOM considers the whole tree –the oversight of all the intertwined and interdependent processes and parts that contribute to the whole.
Variable lead times from your supplier for each individual ingredient? Not sure how much of each raw material to order and when? Having difficulty communicating timeframes and details accurately with your manufacturing partners? StockTrim’s multi-level BOM feature allows you to manage these challenges with ease.
Here’s how:
If you’re already using StockTrim, or you’re keen to know more, here’s how you can regain control of your manufacturing:
- Import: Take advantage of all that precious historical data from your existing inventory management system, like Katana or Cin7.
- Predict: Working from the finished product backwards, StockTrim accurately forecasts the expected sales of your finished goods - drawing on the BOM to calculate the required amount of products, sub-assemblies, and raw components you need to make this all happen and factoring in the variable lead times.
- Configure: StockTrim enables you to customise a whole host of things, including supplier lead times, the minimum shelf levels for your finished goods or sub-assemblies, and whether the number of finished goods you have on hand will impact how many components you need to order.
- Adjust: If you change tack or think your product is going to be more (or less) popular than StockTrim’s initial predictions, you can override the forecasted demand for a finished product. StockTrim will then automatically recalculate the required stock levels and how much you need to order for each related part.
Increased efficiency for that competitive edge
With this level of visibility, you’ll notice the benefits go beyond your day-to-day operations. What about revisiting your whole procurement strategy to make sure you are reaching your competitive potential? Are you confident that you’re acquiring your materials at the best possible cost, with the right amount of raw materials, at the right time, to the right place and at the right quality?
If you want to make your business more efficient and competitive, you need software that gives you awareness of what your inventory is up to and how you need to respond. If you’re not already with StockTrim, join us on our free 14 day trial.
Try Stock Trim free. Or book a demo to see it in action.
