Electronic manufacturing firms have several different inventory control methods to use for managing their 3M Interconnect Solutions parts and components inventories obtained from electronic component procurement supply chain. Deciding which method is best for your firm depends upon the types of finished goods your company produces. There are benefits to each method, and some firms use a mix of the various methods to guarantee they can produce the goods required by their customers.
The first inventory management and control method some firms use is called “Just-In-Time” or JIT. This method is ideal for manufacturers who have limited inventory storage space or who are trying to streamline inventory carrying costs. Using JIT, a manufacturer would receive all of its 3M Interconnect Solutions parts and components with just enough time to complete the production and ensure on-time delivery of the finished goods to its customers. Without large inventories of parts on-hand, companies employing JIT not only achieve cost savings but are also able to maintain a competitive edge in in product design by adapting quickly to newly available technologies without the burden of large stocking levels of legacy products.
The next inventory management and control method used is called “First-In-First-Out” or FIFO. Employing this method, a manufacturing company would draw from the first 3M Interconnect Solutions parts and components received into inventory. As inventory is replenished with new items from your electronic component procurement supply chain, they are placed behind the current inventories. As a result, companies using the FIFO method ensure they always deplete the oldest inventories first.
The third inventory management and control method is called “Last-In-First-Out” or LIFO. LIFO is where the last item in is the first to be used. This method is less commonly used in electronics manufacturing. In an environment of rapidly changing prices, there may be a benefit in better matching current materials costs to current pricing. Where prices are steadily increasing, carrying older lower priced inventory and using newer higher priced inventory can reduce overall inventory carrying costs using the LIFO method.
Using Multiple Management Methods with 3M Interconnect Solutions Parts Inventories
Some manufacturers use a mixture of JIT with either FIFO or LIFO to manage their 3M Interconnect Solutions parts and components inventories. The reason they use multiple methods is to ensure they are capable of responding to their customer needs in a timely manner. For example, JIT is beneficial whenever you have a planned production run and know exactly how many units of finished goods you are going to produce. However, if you receive an emergency or rush order from a customer, you need to fill it quickly. This is why some firms supplement JIT with FIFO or LIFO, and carry small inventories of parts and components to manage these types of customer orders.
To obtain 3M Interconnect Solutions parts and components, or other items you require for your electronic manufacturing firm, contact us at 321-773-9991 today.