What Is a Point-Of-Use Inventory Management System?

Point of use inventory implies that an item’s location is the exact location where the items will be used. Instead of keeping stock in a warehouse or other secondary location until it needs to ship to its user, the item’s location is at the point of use location. Manufacturing companies usually house their entire inventory in one ample warehouse storage space, on-site or off-site. However, centralized inventory has some cons, including excess transportation time to get items.

Benefits of Point-of-Use Inventory Management

With a point-of-use inventory management system, you get the quantity of product you need, where you need it when you need it. Tracking inventory levels and location from place to place is problematic. Without the need to track inventory movements of your raw materials, finished goods, and other items from warehouse to receiving dock to inspection to the factory floor reduces management time. A daily operator is a valuable tool in your goal to downsize inventory.

When it comes to inventory usage, the expert is the person who uses items every day. With point-of-use inventory, your excess is reduced as a result of hands-on knowledge as well as space limitations. You can eliminate the extra processes involved in getting items from warehouses or off-site facilities with point-of-use inventory.

Eliminate management roles, facility needs, and labeling requirements—all ways to streamline your manufacturing process and render it leaner. Our experience with point of use and managing inventory gives us an intelligent perspective. We can advise you on how to implement point of use storage—including optimal storage allocation, shelving choices, labeling best practices—and successful change-management techniques. Implementing this warehouse management system will help with managing inventory, inventory tracking, and overall warehouse management.

Point-of-Use Automated Storage

point of use automated storage vertical vlmAs a growing company with an increasing number of parts, a warehouse for manufacturing parts for printing and packaging equipment decided to implement automated point of use storage in the form of vertical lift modules, vertical carousels, and horizontal carousels. Read on to learn how these automated storage systems provided additional storage capacity in less space with greater efficiency. Click here to learn more about point-of-use automated storage systems.

ASRS Manufacturing Parts Storage

The vertical lift modules (VLMs) are an enclosed inventory system of vertically arranged trays, an extraction platform, and computerized inventory control that allow point-of-use storage and retrieval. Instead of walking and searching for items, the VLM delivers requested parts directly to the operator at the ergonomically-positioned tray. All types of small to large and heavy parts from screws to motor assemblies are stored within the VLM. During picking, the operator moves from storage unit to storage unit with little wait time until the order is filled.

manufacturing parts printing packaging equipment storage

With the previous shelving system condensed into the automated storage lifts, manufacturing parts are stored close at hand in the module assembly area. This also allowed them to free up approximately 1,600 square feet of floor space to use for revenue-generating production rather than storage.

The warehouse also has two automated horizontal carousels at the central distribution point. The VLMs and carousels are both managed by an ERP system and order picking inventory software. This has also allowed them to maintain a 98% picking accuracy while managing the printing and packaging equipment inventory more efficiently.

Contact Us for Point-of-Use Automated Storage

Southwest Solutions Group® provides design and installation services for point-of-use automated storage for manufacturing parts, printing, and packaging equipment as well as a wide variety of other applications. We will also provide you with a free consultation to determine your exact needs and specifications before the design process begins. To learn more or to speak with a specialist, call us at 1-800-803-1083 or send us a message today.


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