Fluctuating material prices and less predictable supplier lead times can make procurement more difficult to manage. Changes in inventory availability, pricing, and delivery schedules can affect purchasing decisions as well as production schedules and job costs.

For small and mid-sized manufacturers, these changes can have a direct effect on day-to-day operations. A material that is delayed or unexpectedly expensive can affect an upcoming work order, while carrying extra inventory can tie up cash and warehouse space.

Managing fluctuating prices and availability requires you to have current information about inventory, open orders, and supplier options.

Better Visibility

Some shops are tracking with spreadsheets or relying on an outdated system. Getting a complete picture of material requirements can take time if data is coming from disconnected sources.

Small business manufacturing software can connect inventory, purchasing, bills of material, work orders, and production scheduling. This gives you a more complete view of material requirements when deciding what to order and when.

Instead of piecing information together from separate sources, you can see:

• What materials are on hand
• What materials are needed for upcoming jobs
• What has already been ordered
• What still needs to be purchased

PBS™ Manufacturing aggregates your operational data in one system to improve coordination between purchasing and production. You can work with current and accurate data when reviewing material requirements.

Optimize Inventory Levels

Inventory levels can be difficult to manage when prices and availability are changing.

Buying more when prices are lower can make sense in some situations, but carrying too much inventory ties up cash and warehouse space. Keeping inventory too low can result in shortages that delay production and customer deliveries.

PBS™ Manufacturing software for small businesses helps you manage inventory levels based on current material requirements, open orders, and production needs. This gives you the information needed to decide what to order and when.

Alternate Vendors

Manufacturers may have multiple vendors for the same material or component. When prices and lead times change, access to alternate vendors can give purchasing more flexibility.

PBS™ Manufacturing lets you maintain multiple vendors for inventory items, along with vendor-specific information such as pricing and purchasing details. This gives you what you need when evaluating where to buy.

Rather than searching through spreadsheets or previous purchase orders to identify another supplier, vendor details are maintained in the system.

Connecting purchasing with inventory and production makes it easier to identify what needs to be ordered and provides a clearer view of issues that could affect upcoming work.

Passport Software

Material costs affect job profitability, especially when prices change between quoting and production. PBS™ Manufacturing provides estimated and actual costs for open and completed jobs.

This data helps you evaluate current jobs and make more informed decisions when quoting. If material costs were higher than expected on a completed job, you have those actual costs to consider when pricing similar work.

PBS™ Manufacturing ERP for small businesses connects inventory, purchasing, bills of material, work orders, production scheduling, and other critical functions across your operation.

Connecting purchasing with the rest of your operation provides a more complete view of material requirements, production needs, and costs.

In a fluctuating marketplace, you cannot always control material prices or supplier lead times. However, you can control how effectively you use the information available to manage purchasing and production.

Better visibility, alternate vendor details, and aggregated manufacturing data support more informed purchasing decisions to keep production moving.

Learn how PBS™ Manufacturing software for small businesses can help improve visibility across your operation and keep production moving. Or contact Passport Software—we’re here to help.