Features:

  • Automated Steps Creation
  • Stock Management
  • Inventory Recording
  • Inventory Turnover Tracking
  • Automated Auditing & Recording
  • Observation Notes
  • AI Driven Summaries, Suggestions & Projects
  • *Available 3rd party Integrations

AI Automation Designed for You!

Praxie’s AI-powered Inventory Management software transforms complex process steps into actionable data insights and significantly boosts productivity of your unique workflows.
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AI-Powered Enhanced Visibility and Waste Reduction
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Improved Efficiency, Productivity and Decision Making
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Customer Focus, Cost Reduction and Process Improvement

“Our team used to take days manually creating status reports. Today, Praxie’s Connected Worker AI automatically creates business summaries, reports and action plans for every layer of management, it’s amazing!.” – Satisfied Customer

Boost Efficiency

Make real-time, data-driven inventory decisions to maximize productivity

Elevate ROI

Optimize stock levels and reduce carrying costs for greater profitability

Streamline Operations

Simplify your inventory tracking and reduce manual errors

Inventory Overview

In manufacturing, inventory refers to the raw materials, work-in-progress goods, and finished products that are held within a facility or storage space. Typically managed by operations managers, supply chain coordinators, and floor supervisors, inventory serves as a crucial buffer that allows for the smoothing out of production processes and meeting variable consumer demands. Effective inventory management enables organizations to reduce carrying costs, improve production efficiency, and ultimately deliver products to market faster, providing a critical advantage in today’s competitive landscape.

Inventory Details

Inventory management in manufacturing is a systematic approach to sourcing, storing, and selling inventory—both raw materials and finished goods. This complex operation involves a series of steps and tools to ensure an efficient flow of goods, minimize costs, and maintain a balanced stock level. Below is a detailed breakdown:

  1. Needs Assessment: Companies first identify the type and quantity of items needed to complete the manufacturing process and meet customer demands.
  2. Vendor Selection: Operations managers choose suppliers based on quality, cost, and delivery times to acquire the necessary raw materials.
  3. Stocking and Storing: Received materials and goods are properly stored using techniques like FIFO (First-In-First-Out) to ensure quality and minimize wastage.
  4. Inventory Recording: Advanced software or manual systems record key information such as item quantities, dimensions, and location in the warehouse.
  5. Inventory Turnover Tracking: Companies calculate the turnover rate to understand how quickly goods are sold and replenished, which helps in optimizing stocking strategies.
  6. Stock Monitoring: Using tools like Just-In-Time, companies maintain optimal inventory levels to meet demand without incurring additional holding costs.
  7. Auditing and Reporting: Periodic physical checks are conducted to ensure the recorded inventory matches the actual stock, followed by detailed reporting for financial and operational assessment.

Effective inventory management is vital for any manufacturing organization looking to optimize its operations. Implementing a robust inventory system not only helps in cost reduction but also improves efficiency, productivity, and customer satisfaction.

Inventory Process

Implementing a robust inventory management system in a manufacturing organization is a critical task that can significantly impact operational efficiency and financial health. As a project manager, you have a leading role in facilitating this transformation.

  1. Conduct an Initial Assessment: Evaluate the existing inventory system to identify bottlenecks and inefficiencies. The success of this step hinges on a thorough understanding of current practices.
  2. Secure Buy-In from Stakeholders: Present your findings and proposed changes to key stakeholders. Achieving organizational alignment is crucial for the initiative’s success.
  3. Select or Develop Inventory Software: Choose a suitable inventory management software tailored to your organization’s needs. Ensure the software is scalable and compatible with existing systems.
  4. Develop Training Programs: Create training materials and programs to educate staff on the new system. Successful implementation relies on user adoption and proficiency.
  5. Initiate Pilot Testing: Roll out the new system in a controlled environment or department to gauge its efficacy. This step is vital for identifying any adjustments or improvements before full-scale implementation.
  6. Monitor KPIs: After the system goes live, monitor Key Performance Indicators like inventory turnover and order accuracy to ensure that the system is meeting its objectives.
  7. Conduct Periodic Audits: Regularly review the inventory system’s performance to ensure it continues to meet organizational goals and adapt to changing operational needs.

The success of introducing an inventory management system into a manufacturing organization rests on meticulous planning, stakeholder buy-in, effective training, and ongoing monitoring. By adhering to these steps, you significantly increase the chances of enhancing operational efficiency, reducing costs, and boosting profitability.

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Your Manufacturing Digital Transformation Practice Lead

Michael Lynch

Michael Lynch is a creative and successful executive with extensive leadership experience in delivering innovative collaboration products and building global businesses. Prior to founding Praxie, Michael led the Internet of Things business at SAP. He joined SAP as part of the acquisition of Right Hemisphere Inc., where he held the position of CEO. During his tenure, he transformed a small tools provider for graphics professionals to the global leader in Visualization software for Global 1,000 manufacturers and led the company to a successful acquisition by SAP.