How Track Raw Materials in Your Warehouse for Production

How Track Raw Materials in Your Warehouse for Production

In a recent article, I examined production companies’ challenges in tracking raw material inventory. This article outlines a system for labeling, storing, picking, and counting raw materials, which can help businesses avoid out-of-stock, lost sales, and wasted materials.

Raw Material Tracking Process

Efficient tracking of raw materials in a warehouse is vital for minimizing waste and maximizing productivity in batch production. This section outlines the strategies to achieve this.

Understand Your Process: Begin by mapping out the production workflow: receiving, labeling, storing, picking, and production.

Implement a Warehouse Management System (WMS): Utilize a WMS for real-time visibility and automation, integrated with existing ERP software to ensure seamless operations.

 Use Barcoding and RFID Technology: Assign unique QR codes to each batch of raw materials. Labels with QR codes should include critical information like lot number, expiration date, and weight.

Establish Accurate Records: Maintain detailed records of quantities, batch numbers, and expiration dates. This information is crucial for audits and quality control.

Conduct Regular Audits: Maintain data integrity with regular inventory audits and cycle counts.

Optimize Warehouse Layout: Design your warehouse to support easy access to materials, implementing a first-in, first-out (FIFO) system to manage inventory turnover effectively.

Monitor Inventory Levels: Set and monitor minimum and maximum inventory levels to prevent stockouts and overstock situations.

Training Employees: Ensure all warehouse staff are trained on using the WMS and understanding the importance of accurate data entry.

Use Batch Production Scheduling: Integrate batch schedules with your WMS to accurately forecast raw material needs and ensure timely availability.

Implement Real-Time Tracking During Production: Specifically:

• Labeling and Scanning: Label each pallet or case upon receipt and scan them into the system.
• Weight Management: Weigh materials before and after production to calculate yields and adjust records.
• Accurate Picking: Use handheld devices to scan bin locations and pick orders accurately.
• Reintegration: Reintegrate materials back into storage after production, updating weights and locations.

Reiterate the Need for Accurate Counting and Adjustments: Simplify inventory counts by scanning bin locations, inputting actual counts, and adjusting records as needed, which is crucial for maintaining accurate inventory levels.

Case Study: Nutrition Manufacturing Company

A large nutrition manufacturing company faced several issues:

• They needed more visibility of product locations.
• Inventory levels were inaccurate due to consumption discrepancies.
• Frequent out-of-stock situations caused production delays.

Solution: The solution involved labeling all incoming materials with a QR code, weight, and expiration date. The warehouse staff scans the labels to record the materials’ location. Then, when a batch order is received, the picker scans the bin location to see how much of each material is needed. After picking, the materials are weighed again to determine the yield. This allows the system to update the amount of materials remaining in the bin. Finally, the video covers how to do inventory counts by scanning the bin location and entering the physical count.

Benefits of the System: The system outlined solves the problems the nutrition company had by:

Overall, this system can save companies significant money by ensuring they have the materials they need for production and reducing waste.

Conclusion

By implementing these strategies, you can achieve a well-organized warehouse and a streamlined batch production process, ultimately leading to higher productivity and reduced costs. Laceup suite of products align with these strategies. If you want to learn more about Laceup Solutions, send us your information so we can schedule a meeting.

I hope this article about raw material tracking and Integration has been helpful to you. I will continue to post information related to warehouse management, distribution practices and trends, and the economy in general. There is a lot of relevant information on our YouTube channel. Check this video on the subject.