What is production warehouse management? Importance and optimal solution

Manufacturing inventory plays an important role in optimizing manufacturing processes and ensuring efficient production operations. Effective manufacturing inventory management enables manufacturers to improve supply chain operational efficiency, reduce costs and improve customer satisfaction. In this article, we will delve into the details of manufacturing inventory management and introduce production warehouse management software that provides strong business support.

What is Manufacturing Inventory?

Manufacturing inventory is an essential component of any manufacturing business. It refers to the raw materials, work-in-progress, and finished goods that a manufacturer holds in stock to support its production process. 

  • Raw materials are the materials a manufacturer needs to produce its products, such as metal, plastic, or wood. 
  • Work-in-progress inventory refers to the partially completed products in the manufacturing process, such as partially assembled cars or partially fabricated electronic components. 
  • Finished goods inventory refers to the final products that a manufacturer produces and holds in stock, such as appliances, vehicles, and electronics.

Manufacturing inventory management refers to the systematic control and supervision of raw materials, work-in-progress (WIP), and finished goods within a manufacturing setting. It involves closely monitoring and tracking inventory levels, planning procurement activities, optimizing storage space, and coordinating production schedules. Efficient warehouse management process ensures that manufacturers have the right quantity of materials available at the right time to meet customer demands, while avoiding overstocking or stockouts that can negatively impact the production process and profitability.

What is Manufacturing Inventory?

What is Manufacturing Inventory?

Importance of Inventory Management in the Manufacturing Industry

Effective inventory management holds immense significance in the manufacturing industry. Here are some key reasons why manufacturers and  warehouse management system should prioritize this aspect:

  1. Cost Control: Proper inventory management helps minimize carrying costs associated with excessive inventory, such as storage expenses, depreciation, and potential obsolescence. By accurately forecasting demand and aligning production with actual requirements, manufacturers can reduce carrying costs and optimize working capital.
  2. Improved Efficiency: Well-managed inventory ensures uninterrupted production flow, reduces lead times, and eliminates bottlenecks caused by material shortages. This leads to improved operational efficiency and increased productivity.
  3. Customer Satisfaction: Timely delivery is crucial for customer satisfaction. By maintaining optimal inventory levels, manufacturers can fulfill orders promptly, avoid delays, and enhance overall customer experience.
  4. Reduced Waste: Inventory management helps prevent inventory spoilage, damage, and expiration. By implementing proper rotation and monitoring techniques, manufacturers can minimize waste and ensure product quality.
  5. Demand Forecasting: Accurate inventory data provides valuable insights for demand forecasting, allowing manufacturers to plan production schedules and procure materials accordingly. This helps prevent excess inventory and stockouts, optimizing the supply chain.

>>>> See more: How to manage warehouse effectively

Forecasted Report - MTO Manufacturing Inventory Management with Just in Time technique

Forecasted Report - MTO Manufacturing Inventory Management with Just in Time technique

Key Operations in Manufacturing Inventory Management

Here are some common manufacturing inventory management operations:

  1. Demand Forecasting: Predicting future demand for products to guide production and inventory decisions.
  2. Reorder Point Calculation: Determining the inventory level at which to reorder materials or products to avoid stockouts.
  3. Safety Stock Management: Maintaining extra inventory as a buffer to account for demand variability or supply disruptions.
  4. Material Requirement Planning (MRP): Planning and scheduling raw material purchases and production based on demand and lead times.
  5. Batch and Lot Tracking: Tracking materials and products by batch or lot numbers to ensure quality control and traceability.
  6. Just-in-Time (JIT) Inventory: Minimizing inventory levels by receiving materials and producing goods only when needed.
  7. Cycle Counting: Regularly counting subsets of inventory to identify discrepancies and maintain accuracy.
  8. Supplier Collaboration: Working closely with suppliers to ensure timely and accurate deliveries of materials.
  9. Quality Control: Implementing processes to ensure products meet quality standards and reduce defects.
  10. Inventory Valuation: Assigning values to inventory items for financial reporting and decision-making.
  11. Production Scheduling: Planning the timing and sequence of production runs to optimize efficiency.
  12. ABC Analysis: Categorizing inventory items based on value to prioritize management efforts.
  13. Waste Reduction: Implementing strategies to minimize waste during production.
  14. Reverse Logistics: Managing the return and disposition of defective or excess products.
  15. Inventory Software Utilization: Leveraging inventory management software or ERP systems to automate and streamline operations.
  16. Supplier Relationship Management: Developing strong relationships with suppliers to ensure consistent supply and effective collaboration.
  17. Lead Time Management: Managing the time between order placement and receipt of materials or products.
  18. Inventory Auditing: Conducting regular audits to ensure inventory accuracy and compliance.
  19. Obsolete Inventory Management: Identifying and managing obsolete or slow-moving inventory items.
  20. Performance Metrics Tracking: Monitoring key performance indicators (KPIs) to assess inventory management effectiveness.
Key Operations in Manufacturing Inventory Management

Key Operations in Manufacturing Inventory Management

Applying software solutions in production warehouse management

Good inventory management is paramount for manufacturers to optimize their operations and achieve maximum efficiency. By implementing effective inventory management strategies, such as using software to classify inventory. By sorting inventory, applying just-in-time methods, and establishing strong relationships with suppliers, manufacturers can reduce costs, improve customer satisfaction, and minimize waste.

Special, Viindoo Inventory is inventory management software suitable for manufacturers with real-time monitoring, integrated systems, customizable workflows, automated alerts and reporting, and scalability. With Viindoo Inventory, manufacturers can experience seamless inventory control and enjoy the benefits of streamlined operations in a competitive manufacturing industry. 

Forecasted Report - MTO Manufacturing Inventory Management with Just in Time technique

Besides, Viindoo Inventory It also has great integration capabilities with other features such as: Accounting, Purchasing, Sales, Production,... thereby creating a powerful and comprehensive system from start to finish of a supply chain.

Forecasted Report - MTO Manufacturing Inventory Management with Just in Time technique

Forecasted Report - MTO Manufacturing Inventory Management with Just in Time technique

In short, manufacturers should prioritize effective inventory management practices and leverage advanced manufacturing inventory management solutions like Viindoo Inventory to stay ahead and drive sustainable growth. However, if your business still has many questions and concerns about the software, please contact Viindoo via hotline +84 225 730 9838 to receive free consultation.


Yes, Viindoo supports multi-location inventory management, allowing manufacturers to manage inventory across different warehouses orproduction facilities.

Viindoo offers advanced demand planning tools that utilize historical sales data, market trends, and customer behavior to accurately forecast future demand. This enables manufacturers to plan production and procurement activities effectively, avoiding excess inventory or stockouts.

Yes, Viindoo provides comprehensive traceability features that allow manufacturers to track the movement of inventory items throughout the production process. This ensures transparency and enables better control over work-in-progress (WIP).

Absolutely. Viindoo allows manufacturers to track inventory by batch or lot numbers, providing full visibility into the origin and history of each item. This is particularly useful for industries with strict quality control requirements.

Can Viindoo integrate with other systems used in the manufacturing industry?

Yes, Viindoo has extensive integration capabilities, allowing it to seamlessly connect with other systems commonly used in the manufacturing industry. This includes ERP systems, CRM software, e-commerce platforms, and more.

What is production warehouse management? Importance and optimal solution
Viindoo Technology Joint Stock Company, Athan Hoang December 21, 2023