Product costing is a necessity not only for accountants but also for managers. Understanding the costs related to manufacturing your products gives you the chance to determine optimal selling prices and take steps toward cost reduction. Here is a simple guide to performing product costing.
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Make-to-order (MTO) and assemble-to-order (ATO) are manufacturing workflows that use the pull system, meaning that production starts when an order comes in. As such, they are mostly used by companies that manufacture customizable products. In this post, we go over their differences, pros and cons, and production management considerations.
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Distribution management is an integral part of any well-functioning business that sells physical products. Although the actual shipping of goods takes a central role in the process, distribution management includes many other processes that support timely and cost-effective deliveries.
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Mattress maker B&A Quilting successfully adopted MRPeasy as their first manufacturing software after a fire ravaged the firm’s premises and presented an opportunity for a fresh start. The company uses MRPeasy for procurement, stock management, and quoting, with Production Director Javed Bashir describing the software as an invaluable help in growing the business.
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Capacity utilization is an important KPI for manufacturing companies. It represents the percentage of production capacity (or productivity) that a factory, enterprise, or economy is operating at compared to its maximum potential capacity.
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E-commerce is reaching new heights, much thanks to platforms such as BigCommerce that make opening a webstore easier than ever before. Managing a growing e-commerce company, however, becomes increasingly difficult and soon merchants discover that they need more advanced tools than what is available on BigCommerce.
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Pipeline inventory consists of goods that a company has ordered but which have not yet arrived in the facility. Managing this type of inventory can help schedule production or shipments in advance, reduce standing inventory levels, and avoid stock-outs.
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Discrete manufacturing implies producing distinct items that require assembly along a production line, whereas process manufacturing produces goods in bulk, with the raw materials being mixed together in the manufacturing process. In this article, we will explore key differences between the two and look at examples of each.
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Quality control is the process of fulfilling and checking the conformance to quality standards. There are many different approaches to quality control, but an important part of every one of these is regular inspection of the goods. Besides dedicated QMS software, some ERP/MRP systems offer the required functionality to small businesses.
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For the financial departments of manufacturing companies, few things are as important as inventory valuation. Due to the effect on the gross profit of a company, choosing the right inventory valuation method is a crucial step in ensuring the financial health of your company.
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Incoterms or International Commercial Terms are used to facilitate and standardize trade processes, especially logistics and shipping. As of today, there are 11 different Incoterms that all allocate different responsibilities to both parties of a transaction.
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Inventory optimization is the act of balancing inventory costs, service levels, and the complexity of inventory management. While there is no single magical solution for keeping your stock optimized, different methods and techniques are brought together in ERP/MRP systems.
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