The Benefits of a Modern Production Planning System for Manufacturers

Improve Manufacturing Efficiency

A modern production planning system can help you improve manufacturing efficiency by reducing waste, improving productivity and quality, reducing manpower and costs. In addition to these benefits, it will also allow for better customer service and faster delivery times.

Better Forecasting

Forecasting is the process by which you predict future demand for your products. It's used in manufacturing, retail, and other industries to ensure that there are enough products on hand to meet customer needs. If you're a manufacturer with a large inventory of finished goods and raw materials, forecasting can be especially challenging--and expensive if it's done manually.

A computerised production planning system uses data from previous years' sales volume and historical trends to forecast future demand for specific items or product lines within your organisation's portfolio of offerings. This allows you to plan ahead so that production facilities have enough capacity available when needed, without having too much extra capacity sitting around idle (which wastes money).

Minimise Risks and Surprises

A modern production planning system can help you to minimise risks and surprises. Planning is a key part of risk management, as it helps you to avoid overproduction and underproduction. The right planning system will also help you avoid inventory issues, production bottlenecks and other problems that can arise from poor planning.

• Gain better control over inventory levels
• Reduce inventory costs
• Reduce time to market times and improve flexibility to meet customer demand. Improve customer service by reducing lead times and improving on-time delivery performance, thus reducing customer dissatisfaction and increasing loyalty, which in turn can help you win new business from them or other customers who hear about your great reputation for providing excellent products or services at competitive prices (which means more sales)

Improved Order Accuracy

With a modern production planning system like FactoryIQ, you can avoid understocking and overstocking. You'll also be able to get the right parts, in the right quantities and at the right time. This will help improve your order accuracy which leads to better customer service.

For example: if you're needing produce 10 000 units per month but only ordering 5,000 units per month from your suppliers because of poor forecasting (or because someone forgot about an order), then there will be 5,000 shortfall - losing sales, losing profit, losing money! (yes I know this seems like an extreme example, but I have witnessed this.)

A Modern Production Planning System provides many Benefits to Manufacturers

Benefits include:

Better forecasting. The ability to forecast demand and make accurate projections of future sales allows you to better plan for the future and minimise risks and surprises.

Improved control over inventory levels. A clear understanding of what products are selling well and when they need replenishing allows you to gain better control over your inventory levels, which in turn helps reduce costs associated with carrying unsold goods on hand or storing surplus stock in an offsite warehouse space.

Improved order accuracy. Since you have access to data about what products have been sold in the past as well as feedback from customers about which items they prefer over others (whether it's based on quality or price), this information can help improve order accuracy so there aren't any mistakes made during placing orders with suppliers or distributors-- which ultimately leads directly back into saving money since mistakes cost money due either directly through paying someone else more than necessary OR indirectly because it takes extra time/effort/money spent fixing mistakes instead doing something else productive like making new products!

Increased Production Throughput: With less waste, you'll be able to improve your production throughput and reduce the cost of sales. In addition, you can cut down on inventory carrying costs and increase profits. Productivity improvements with a modern production planning system can help boost productivity by 10-20% or even more

Conclusion

A modern production planning system like FactoryIQ can help manufacturers improve their efficiency, reduce risks and surprises, and better control inventory levels. This is a win-win for both the company and its customers.