Unique Challenges faced by Metal Fabricators

Metal fabrication companies often face unique challenges when it comes to managing inventory. These companies deal with various types of metals, including sheets, rods, and bars, which require different units of measurement, making inventory management complicated. In this blog, we will explore some of the issues that metal fabrication companies face with inventory and how fractional inventory management can help.

Inventory Issues in Metal Fabrication

Returning Pieces of Metal Sheets to Stock After Use

One of the most significant challenges for metal fabrication companies is returning pieces of metal sheets to stock after use. Metal sheets come in large sizes, and it is not always possible to use the entire sheet for a single project. Often, the company needs to cut the sheet into smaller pieces and use only a portion of it for a specific project. The remaining pieces then need to be returned to inventory, and tracking these pieces can be a challenge.

Purchasing in Different Units of Measure

Metal sheets come in various sizes and thicknesses, and they are often purchased in different units of measure, such as square feet or square meters. This makes it difficult to track inventory accurately, as it is challenging to convert between these units of measure.

Issuing on the Floor

When metal sheets are cut into smaller pieces for a project, it is necessary to issue the specific pieces required to the shop floor. Tracking these pieces can be challenging, especially if the inventory system does not allow for fractional inventory.

Fractional Inventory Management

Fractional inventory management is a process of tracking inventory in units smaller than the whole unit. This process allows companies to manage inventory accurately, even when dealing with fractional quantities. In metal fabrication, fractional inventory management can help with the following:

Returning Pieces of Metal Sheets to Stock After Use

With fractional inventory management, metal fabrication companies can track the specific pieces of metal sheets used in a project and return the remaining pieces to inventory. The inventory system can track these pieces as fractional inventory, allowing for accurate tracking of the remaining pieces in inventory.

Purchasing in Different Units of Measure

Fractional inventory management can help with the conversion between different units of measure when purchasing metal sheets. The inventory system can handle fractional units, allowing companies to track inventory accurately, regardless of the unit of measure used.

Issuing on the Floor

When issuing metal sheets to the shop floor, fractional inventory management can help track the specific pieces used in a project accurately. The inventory system can track the exact pieces issued, allowing for accurate reporting on inventory levels and reducing the risk of stockouts.

Conclusion

Metal fabrication companies face unique challenges when it comes to inventory management. However, with fractional inventory management, these challenges can be overcome. Fractional inventory management can help companies accurately track inventory levels, return pieces of metal sheets to stock after use, handle different units of measure, and issue metal sheets on the shop floor accurately. By implementing fractional inventory management, metal fabrication companies can improve their inventory management processes, reduce wastage, and improve overall efficiency. To learn more about how Acumatica ERP handles fractional inventory contact AIM Solutions Inc.