Quick Tip: Should You Be Lean Purchasing?

Should You be Lean Purchasing?

Problem

MIE Solutions has worked with many manufacturing companies who experience the recurring problem of customers wanting a finished product sooner than it takes to make it. In many cases, those manufacturing companies are performing under the Just-in-Time window and preventing a lean process.

 

Questions to Ask

  1. Are you currently running “lean purchasing”?
  2. How many people make purchases in your organization?
  3. Are you equipped to analyze your supplier’s delivery performance?

 

What can we do?

The term “lean purchasing” refers to the method of purchasing items only when needed, reducing the cost of carrying inventory.

To practice “lean purchasing”, you can:

  • Use MRP reporting, which includes a snapshot of inventory levels, delivery schedules, and forecasting orders
  • Purchase job-to-job
  • Purchase by reorder point and recalculate based on requirements

Using your ERP system, select a supplier and generate a report that lists their on-time delivery history. This data helps you track how often you reject deliveries or if material is not “up to spec”. It also allows you to audit your suppliers and have the tools to purchase intelligently. Without ERP software, this information is not available.

MIE Trak Pro includes a new feature that automatically executes the MRP application and creates sales orders from the MRP.

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