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Keeping the necessary parts in stock is an ongoing challenge for any manufacturer. Running out of parts stops production, so effective inventory management is vital. If you run out of critical parts, such as fasteners, productivity slows as the product team scrambles to track down additional inventory, which you will end up paying more for.
Inventory management isn’t glamorous, but inventory disruptions result in wasted time and resources. If you aren’t tracking your fastener inventory, you risk fastener stockouts, which can directly impact your bottom line.
To ensure you have the parts you need when you need them, we offer four fastener inventory management hacks to help you keep fasteners in stock.
1. Streamline your supply chain.
One of the best ways to ensure you have enough fasteners is to simplify your supply chain by consolidating vendors. The COVID-19 pandemic shone a light on the weaknesses in the supply chain. A Q4 2023 survey found that 86.2 percent of manufacturers had worked to reduce supply chain risks by restructuring their vendor lists to include more domestic suppliers, identifying more nearshore suppliers, and finding more partners with free trade agreements with the United States.
Having fewer suppliers:
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Improves efficiency across the entire supply chain, including during procurement, delivery, production, and asset management
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Makes it easier to monitor performance and focus on enhancing the quality and delivery
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Reduces overall inventory costs, including holding costs
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Simplifies inventory management because there are fewer moving parts
Narrowing down the number of suppliers you work with also means spending less time working on purchase orders, tracking shipments, and organizing the warehouse, which translates to improved productivity and a boost to the bottom line.
2. Invest in the right technology.
Efficient fastener inventory management requires the right technology, including an effective inventory management system (IMS). The right IMS can streamline inventory tracking, including maintaining inventory levels, picklists, locations, and more. Incorporating an IMS into an enterprise resource planning software can standardize inventory management and integrate it with business processes, including finance, procurement, distribution, and more.
More manufacturers are using online ordering to streamline their parts inventory management. In addition to placing orders directly with suppliers, procurement professionals are turning to specialized online marketplaces to source parts.
Vertical B2B parts platforms offer a comprehensive parts inventory from a large selection of vendors, making it easy to compare parts, price, and availability. E-commerce platforms, such as the Bay Supply Marketplace, make it easy to search for parts, create and syndicate requests for quotes, communicate with suppliers, and track orders and back orders. They can also be used to automate inventory workflows.
3. Work with a Tier 1 sourcing partner.
Tier 1 distributors are vital to any successful supply chain. They buy direct and often have semi-exclusive deals with parts makers, which usually means they get better pricing and priority access to inventory.
When you establish a relationship with a Tier 1 distributor, the distributor holds the shipment. They manage blanket shipments, which helps with predictive demand planning. They also offer value-added services, including engineering support, technical sales support, and inventory management assistance.
4. Use a kanban system.
An industrial engineer at Toyota originally develo /ped kanban for lean manufacturing in the 1940s. Kanban is a way to visualize your production line, including inventory management, using a kanban board with cards representing tasks to be done, in progress, and completed.
Kanban has proven to be an effective way to share instructions throughout the production line. It’s often used for just-in-time manufacturing, in which a large number of components are made available only when needed, not before.
Kanban is a central part of lean manufacturing practices and helps eliminate waste and excess inventory, reducing the need for additional parts storage and the risk of overproduction. It has been proven to lower overhead costs, standardize production goals, and increase efficiency. It also improves response time when product design or demand changes, reducing the risk of obsolete inventory.
Keep fasteners in stock with the Bay Supply Marketplace.
Keeping vital parts, such as fasteners, in stock is simply a matter of proper planning and efficient fastener inventory management. Simplifying your supply chain means relying on fewer vendors, which streamlines processes. You can also use smart inventory software and adopt online procurement to maintain stricter control over parts supplies. Finding a good Tier 1 distributor also helps ensure you can get the parts you need when you need them. Finally, adopting a kanban system gives you greater visibility into production inventory, supporting lean manufacturing practices.
These are just four ways to streamline your inventory management, reduce your overhead, and ensure you have the necessary parts inventory in stock. Bay Supply can help. The Bay Supply Marketplace is rapidly becoming the go-to online destination for fasteners, offering a wide selection, easy ordering processes, and reliable delivery. If you haven’t already signed up, join the Bay Supply Marketplace today.
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