- Profitability in product manufacturing begins with visibility into Costs of Goods Sold (COGs).
- Supply chain challenges and moving from Just-In-Time (JIT) to Just-In-Case (JIC) methodologies, underscore the need for a balance between efficiency and preparedness.
- Inventory Management capabilities are crucial to respond nimbly to shifting market conditions.
- Technology addresses this need with real-time visibility, robust planning infrastructure, and agility in supply chain management.
In recent years, the rapidly evolving nature of today’s marketplace has led to disruptions in the supply chain presenting new challenges in achieving a seamless flow of goods. These transformative times have led manufacturers to incorporate increasingly intelligent systems and tech innovations that enhance the efficiency of the way goods are produced and sold.
As companies navigate the changing global marketplace, one thing is clear; specialized systems and ERP software solutions are more important than ever to manage and integrate all facets of operations effectively. By leveraging this technology, manufacturing companies can master product preparedness and gain a competitive advantage in an increasingly challenging market.
Leveraging Technology to Take Command of COGs
Tech platforms like Turbine play a crucial role in addressing these challenges. By leveraging its real-time data capabilities, Turbine can successfully tackle supply chain inconsistencies. This advanced system offers a comprehensive overview of production, generates detailed reports, and streamlines workflow processes for maximum efficiency.
From Volatility to Visibility and Agility
As a result of supply chain volatility, manufacturers are doubling down on real-time tracking to ensure complete control and visibility over their entire supply chain. Others are responding to the unpredictable nature of global supply chains by recalibrating their approaches, incorporating elements of Just In Case (JIC) alongside traditional lean, Just In Time (JIT) methodologies. Whichever strategies companies have deployed to adapt, there is no doubt that visibility is paramount to addressing volatility.
When it comes to profitability in product manufacturing the first step toward profitability begins with COGs visibility and a focus on these core areas:
- Visibility: Establishing real-time visibility across the supply chain is indispensable. Accenture’s research underscores that 76% of companies deem real-time visibility crucial for effective supply chain management.
- Capability: Strengthening supply chain planning capabilities is imperative. Companies must develop a robust planning infrastructure to stay ahead of supply chain risks and opportunities.
- Agility: Swiftly adapting to unforeseen threats is a game-changer. IBM’s analysis accentuates that agile supply chains are 2.7 times more likely to outperform their counterparts.
Why You Should Add Turbine to Your Tech Stack
Turbine is optimized for efficiency. By integrating with existing accounting tools, Turbine ensures financial data remains accurate and balanced.
One of the core features of Turbine is demand forecasting. Leveraging historical data and current sales trends, this ERP system creates multi-model forecasts. This enables manufacturers to optimize production planning and inventory management, resulting in better overall efficiency.
Another key capability Turbine offers is real-time inventory tracking. With instant visibility into stock levels and locations, businesses can enhance supply chain agility. Additionally, Turbine alerts users when inventory reaches low levels and provides intelligent recommendations for replenishments.
Cost management is also an important aspect of Turbine’s functionality. By linking orders and revenue recognition back to purchase orders, this ERP system offers clear insights into COGS, operating expenses, and profit margins. These valuable insights empower businesses to make data-driven decisions that drive growth.
To ensure reliable inventory and cost tracking, Turbine utilizes double-entry accounting practices. This ensures that financial reports always present a balanced view of inventory assets that can be audited if necessary.
As manufacturing companies navigate complex inventory strategies like just-in-case (JIC), Turbine’s automation capabilities provide control over rising stock levels. In addition, its integrated platform connects suppliers, inventories, production schedules, and customer demand to build resilience in the face of market changes.
The robust ERP functionalities that are customized for manufacturers are why we think Turbine makes a great addition to any tech stack. With the ability to intelligently forecast demand and adapt rapidly to market fluctuations, businesses can achieve profitable scalability by leveraging the power of this comprehensive solution.
Deloitte's research highlights that businesses with a comprehensive understanding of COGs are 3 times more likely to outperform their competitors.
A Powerful Pair
Combining Manufactured’s platform with Turbine’s lightweight and efficient ERP unleashes the power to facilitate profitable growth. Brands can leverage the smart functionalities of the tools, tech, and teams that manufacture, finance, and scale more profitably with all the capabilities they need to gain control over COGs, streamline operations, forecast intelligently, and respond quickly to changing market dynamics.
Understanding current supply chain challenges, implementing strategic tracking tactics, and leveraging powerful tech platforms like Turbine can help businesses successfully navigate today’s volatile business environment.
ARE YOU A BRAND MERCHANT LOOKING TO GROW YOUR BUSINESS?
Whether you need sourcing assistance, inventory optimization or financing, Manufactured’s end-to-end manufacturing support platform can help. Contact us to speak with one of the inventory experts at Manufactured. Our solutions specialists can help you navigate complex financing options while providing valuable information and insights, so you can choose the option that’s best for you.
Learn how to apply for vendor financing, and get help receiving purchase order financing. Manufactured helps customers in over 20 categories across 25 countries with product manufacturing and inventory financing.