How Manufacturers Should Account for Excess Capacity

Just as consumers have to abide by the load capacity of their washers and dryers, manufacturers should set up their businesses to handle certain production capacities. Based on past and projected future sales levels, they invest in machines, buildings, materials, and laborers to meet anticipated needs. In spite of these investments, a manufacturer sometimes experiences [...]

2019-06-13T12:05:26-05:00February 5th, 2019|MANUFACTURING & DISTRIBUTION|

3 Questions for Easing the Seesaw of a Seasonal Product Cycle

Manufacturing and distribution companies that handle seasonal merchandise know that correctly managing supply and demand can be the difference between having a warehouse with minimal inventory (which is ideal) and carrying the burden of leftover inventory (the result of poor planning) after peak season. Accurately forecasting the demand for seasonal merchandise is difficult because of [...]

2019-06-12T15:08:16-05:00February 3rd, 2019|MANUFACTURING & DISTRIBUTION|

A Look at Internal Controls and Processes for Evaluating Vendors

Manufacturing and distribution companies should appraise vendors through various lenses since they are such an integral part of the company’s success. Given all of the discussion related to the increase in fraudulent activities, it is a good idea for businesses to incorporate an evaluation of internal control processes for accounts payable and vendors. Here are [...]

2019-12-26T12:58:17-06:00January 12th, 2019|MANUFACTURING & DISTRIBUTION|

Back to Basics: Inventory Control and Generating Cash

Excess inventory can reduce cash reserves (typically used to cover unexpected expenses during uncertain economic periods) and create a strain on a manufacturing or distribution company’s ability to pay unanticipated expenses. Therefore, tough times require companies to get back to the basics of controlling inventory to generate cash. While inventory turnover declines when a company's [...]

2019-06-13T09:19:57-05:00November 8th, 2018|MANUFACTURING & DISTRIBUTION|

Backup Suppliers Are the Link to a Strong Supply Chain

Manufacturers rely on a supply chain to provide the raw materials required for production. If a supplier doesn’t deliver materials as promised, then production could be delayed or halted. Manufacturers can guard against supply shortages by creating agreements in advance with backup suppliers. Reinforcing the Chain with Backup Suppliers By having a contract already negotiated and [...]

2018-11-12T15:49:29-06:00February 3rd, 2016|MANUFACTURING & DISTRIBUTION|

How to Manage Supplier Costs and Keep Your Business Balanced

Manufacturing and distribution companies often have to dance with suppliers. As raw material and transportation costs continue to climb, many distributors are encountering price increases from their suppliers. Waiting for prices to stabilize is not an option for businesses feeling the squeeze of these increases. Before deciding to find a new supplier, consider the following [...]

2018-12-10T16:15:33-06:00May 9th, 2014|MANUFACTURING & DISTRIBUTION|

Manufacturing Inventory Accuracy Counts

Sophisticated inventory management software is designed to minimize the risks of tallying inaccurate quantities, but that risk reduction may not happen if the system does not enable manufacturing inventory accuracy. Incorrect inventory quantities can lead to delays in order fulfillment and upset customers. If the data do not match the physical inventory in the warehouse, [...]

2018-11-12T15:54:15-06:00February 7th, 2014|MANUFACTURING & DISTRIBUTION|