From Production to Customer: Connecting Inventory and Demand

Plan, produce and deliver: Managing high-volume plastics and packaging manufacturing | Part 3 of 3

In Part 1, we explored how plastics manufacturers can plan production and material requirements without sacrificing flexibility. Part 2 examined the benefits of connecting ERP with a Manufacturing Execution System (MES), linking production planning with activity on the factory floor.

The next challenge is ensuring that production activity is translated into accurate inventory information and reliable customer fulfilment.

In high-volume plastics manufacturing, stock positions can change rapidly. Production may continue around the clock while large quantities of finished goods leave the business each day. At these volumes, understanding what is available now, what has already been committed and what additional stock is expected from production becomes increasingly important.

Maintaining that understanding depends on accurate information flowing from production planning, through manufacturing, and into inventory management.

Balancing production efficiency and inventory levels

Machines are expensive to stop, and changeovers consume valuable production time. Longer runs can therefore make sense from a machine-utilisation perspective. The quantities that are efficient to manufacture, however, do not always match the quantities required immediately.

Where production quantities exceed current requirements, finished goods can accumulate in production and warehouse areas, increasing pressure on storage capacity and tying up working capital in stock that may not be required immediately. At the same time, demand for another product may be increasing. The challenge is therefore balancing efficient production quantities with changing inventory requirements and customer demand.

Maintaining that balance depends on having a current view of production activity, inventory levels and customer demand.

Making production output visible in inventory

As production progresses, MES can capture completed quantities and return that production information to ERP, where it becomes part of the inventory picture.

This provides a more current view of what has been produced and what finished goods are becoming available. For businesses operating continuously, that information can change throughout the day as production adds to inventory and customer orders reduce it.

Connecting MES with ERP can provide a more timely inventory picture, giving manufacturers a clearer view of what is available now and what may become available next.

Seeing what is available and what is coming

The inventory balance is only one part of the availability picture. Some finished goods may already be allocated to customer orders, while other products may still be moving through production and are not yet available for sale. Scheduled manufacturing orders may replenish stock, while production delays can affect expected availability dates.

With ERP and MES working together, current inventory can be considered alongside customer commitments and expected production, providing a clearer view of what can be supplied now and what may become available next. This supports more informed discussions about quantities and delivery expectations.

Bringing the series together

High-volume plastics manufacturing depends on more than the performance of individual machines, systems or departments. Planning, production execution, inventory management and customer demand all form part of the wider operational picture.

Forecasts and material requirements shape the production plan. Connecting ERP and MES brings more timely production information back into the ERP inventory picture. Inventory information can then show what has been produced, what is available and what is expected to become available next.

A more connected flow of information provides a clearer view of production activity and inventory availability, helping manufacturers to respond as demand, inventory requirements and production conditions change.

For plastics manufacturers operating at high volumes, this joined-up view helps support production and inventory decisions from initial planning through to customer fulfilment.

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Explore how Abel supports different industries and operating environments:

Talk to Abel about connecting production planning, material requirements, manufacturing execution and inventory management to support decision-making from initial planning through to customer fulfilment.

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Plan, produce and deliver: Managing high-volume plastics and packaging manufacturing | Part 3 of 3…

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Plan, produce and deliver: Managing high-volume plastics and packaging manufacturing | Part 3 of 3…

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