The High Cost of "Just in Case"
Traditional manufacturing often relies on "Just in Case" inventory management—stockpiling raw materials to avoid stockouts. While safe, this approach is expensive. Warehousing costs, insurance, spoilage, and obsolescence can amount to 20-30% of the inventory value annually.
For a modern manufacturer, holding excess cash in the form of steel, plastic, or components is inefficient. The solution? Just-in-Time (JIT) Manufacturing.
Data: The JIT Enabler
JIT is impossible without data. You can't delay ordering materials until the last moment if you don't know exactly when you'll need them. This is where the FiyonOS ERP Manufacturing Cloud transforms operations.
1. Dynamic Bill of Materials (BOM) & Demand Forecasting
Our platform links your Sales Orders directly to your Production Planning. When a deal closes in the CRM:
- The system explodes the BOM for the required products.
- It checks current stock levels in real-time.
- It calculates exact material requirements.
Instead of guessing, you order exactly what you need, exactly when you need it.
2. Real-Time Work Order Tracking
Knowing that 500 units are "in production" isn't enough. You need to know that they are at Work Center B, 50% complete, and will need the packaging materials by 2:00 PM tomorrow.
Our Production Entry and Job Card tracking gives floor managers granular visibility. This precision allows procurement teams to schedule deliveries that align perfectly with production consumption rates, minimizing warehouse dwell time.
3. Reducing Scrap and Waste
Inventory cost isn't just about storage; it's about waste. Material sitting on a shelf risks damage or expiration. By moving to a tighter flow, you ensure materials are fresh and relevant. Furthermore, our Quality Control (QC) module tracks defect rates per supplier. If a JIT shipment arrives with defects, you know immediately, allowing you to enforce vendor SLAs and keep your line running smoothly.
Case Study: Making the Switch
Consider a mid-sized electronics assembler. By switching to our JIT-enabled platform, they:
- Reduced raw material inventory by 22% in Q1.
- Freed up $150,000 in working capital utilizing the Asset Management module.
- Cut warehousing space rental fees by 15%.
Efficiency isn't just about speed; it's about intelligence. Let your data drive your inventory, not your fears.