As global pressures mount to minimize costs and maximize customer satisfaction, manufacturers and distributors face the daunting challenge of reducing inventory costs without compromising on service quality. The Advanced UOM capability serves as a crucial component in achieving this balance. It allows businesses to manage their inventories more dimensionally and transactionally with dual units of measure, thereby enhancing the accuracy of cost and inventory forecasts and simplifying the location of specific inventory items.
Case Studies and Industry Application
Within sectors that manage high-value inventory or where precise measurements are critical—like metals, textiles, and fabricated products—Kinetic’s Advanced UOM provides a competitive edge. Companies in these industries report improved responsiveness to customer demands, better planning capabilities, and overall enhanced productivity thanks to the sophisticated inventory management capabilities offered by Advanced UOM.
Key Features of Advanced UOM
1. Attribute-Level Segmentation
Advanced UOM enables businesses to segment inventory by various attributes like hardness, strength, modulus of elasticity, or density. This segmentation not only facilitates quick location of the necessary inventory but also makes physical counts more meaningful and aids in planning inventory needs more accurately.
2. Dynamic Attributes for Conversion
This functionality supports dynamic attributes that assist in managing conversions between different units of measure, such as from pounds or grams to meters or pieces. It allows for the specification of both theoretical and actual sizes, which can then be converted to precise weight measures. This dual approach is particularly beneficial in scenarios where purchasing and selling occur in different units from those used in managing inventory and production.
3. Enhanced Visibility and Simplified Transactions
Transacting in dual units of measure across the ERP system improves the visibility of inventory levels and the accuracy of cost calculations. For example, this allows you to quickly view the quantity AND the weight of each item in inventory.
Benefits of Implementing Advanced UOM
Improved Inventory Accuracy: By allowing transactions in dual units of measure, businesses can significantly enhance the accuracy of their inventory records.
Reduced ERP Setup and Maintenance: Advanced UOM simplifies the initial setup and ongoing maintenance of the ERP system, accelerating the time to value.
Better Quality Tracking: The attribute-level tracking enables better quality control and more precise forecasting of inventory needs.
Cross-Industry Applicability: Although particularly beneficial in the metals industry, the functionality of Advanced UOM extends to various sectors including textiles, fabricated metals, landscaping materials, packaging, furniture, footwear, eyewear, sporting goods, and more.
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