InventoryManufacturing TipsSupply Chain Materials Management – Definition, Benefits, Best Practices Implementing proper materials management practices allows businesses to make sure the correct materials with the best price and quality reach the shop floor at the right time and in the correct quantity. Follow these best practices to get more control over this essential segment of the supply chain. By Madis Kuuse 12 min read
InventoryManufacturing TipsSupply Chain What is Traceability and How to Achieve It? Traceability is the ability to track a product or item throughout its entire supply chain, from its origin to the end consumer. Traceability enhances product safety and consumer trust by enabling companies to identify contamination or defect sources, perform targeted interventions and efficient product recalls, and increase transparency regarding the origins and handling of products. By Madis Kuuse 12 min read
InventorySupply Chain Manufacturing Supply Chain Management – Best Practices for SMEs Supply chain management encompasses everything from negotiating vendor contracts for raw materials to handling returns of a product. While it is a central concept for any company producing or selling physical goods or even services, this post focuses on the importance and best practices of SCM from the perspective of small and medium manufacturers. By Mattias Turovski 11 min read
AccountingInventoryManufacturing Tips How to Calculate the Cost of Goods Manufactured (COGM)? Knowing the cost of goods manufactured is vital for a good overview of production costs and how they relate to the bottom line. COGM also allows management to identify cash drains, adjust prices, and track the development of the business. You can also listen to this article: By Mattias Turovski 11 min read
Inventory What Are Stock Keeping Units (SKUs) and How to Manage Them? A stock keeping unit (SKU) is a specific type of product in a company’s inventory that is marked with a unique SKU code. Using SKU codes for inventory tracking allows you to avoid stockouts and overstocking, ensure effective picking and dispatch, and track inventory performance related KPIs. By Madis Kuuse 11 min read
InventoryProduction planningSales How to Manage Product Variants in Manufacturing? Product variants are versions of products with variations in attributes such as color, size, material, features, pricing, etc. Even though selling a product with variants is quite clear-cut, managing their production can be a real headache. By Madis Kuuse 9 min read
AccountingInventoryManufacturing Tips Work in Process Inventory – What Is WIP and How To Calculate it? We have all seen manufacturing depicted in cartoons. Basic resources are rolled into a factory, followed by loud noises and a smoking chimney. Then, shiny finished products emerge on the other side. In reality, manufacturing is a bit more complex. On their journey toward becoming final products, raw materials go through work in process inventory. […] By Mattias Turovski 12 min read
InventoryManufacturing TipsSupply Chain Material Planning – Definition, Tools, and Tips Material planning is the process of figuring out what and how much is needed in order to produce goods within a specified timeframe, and ensuring the timely delivery of those materials. Accurate material planning can contribute significantly to the efficiency and profitability of a company. By Madis Kuuse 13 min read
InventoryManufacturing TipsSupply Chain What Is Economic Order Quantity (EOQ) and the EOQ Formula? Economic order quantity is a supply chain management technique used to determine the optimal lot size per order. This is done in order to avoid stockouts and overstocking, thereby balancing inventory costs and opportunity costs. By Madis Kuuse 9 min read