We all know that to retain a customer in such a competitive world is not so easy. To retain a customer, we have to work on many aspects to make sure customer satisfaction, out of which quality is one of the major aspects for which we must have quality/inspection process in place.

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Manufacturing strategies based on the stage at which customer engages with us and Nature of Production. Know in detailed with Images and Videos Click Here.

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In our previous ERP planning tip, we discussed routings, the final data set-up requirement for making an item. In this tip, I dig deep into another critical data requirement – the need to maintain timely and accurate inventory counts and movements.

If inventory counts and movements aren’t accurately reflected in the planning engine, MRP will issue inaccurate recommendations. This might mean that replenishment order recommendations are issued to soon – which could lead to unnecessary increases in operating costs and constraints to cash flow. It might also mean that replenishment order recommendations are issued too late – which could create customer churn caused by avoidable order delays. Finally, it might mean that replenishment order recommendations are made for the wrong items or quantities – which could result in unnecessary orders of depreciating inventory.

The key, therefore, is to ensure that the planning engine issues planning recommendations for the correct items and quantities at the appropriate times. To issue just-in-time, time phased replenishment orders, the planning engine requires five basic data elements:

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