How One Cosmetics Manufacturer Tracks Lightweight Drums to Reduce Inventory Waste

How One Cosmetics Manufacturer Tracks Lightweight Drums to Reduce Inventory Waste

Every manufacturer looks for ways to reduce costs and eliminate waste from processes. For specialty chemical manufacturers, a good way to reduce product waste is to accurately track and use all inventory. Businesses that have embraced a digital transformation have the technology to keep an exact measure of product on-hand so that it can be used efficiently.

After a large batch of product is made, the finished goods are poured into large containers, usually drums, to store until it’s time to be packaged for sale to customers. Often times, the last drum filled will not be completely full, known as a “lightweight drum”, which creates a challenge for the manufacturer. The company will need to track which drum is less full than the others and know exactly what’s inside it, down to the batch number. This way, the leftover product in the lightweight drum can be used for testing or creating small customer samples, and won’t be mistaken for a full drum that’s ready for packaging.

Our team created two easy-to-use solutions in Microsoft Dynamics 365 for Finance and Operations for one personal care/cosmetics company who had this issue.

Option One allows the company to track the drum’s weight, so they know which drums are less than a full weight. In the example below, the company has 10 full drums and one lightweight drum that came from the same product batch.

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Option Two uses the Product Dimensions configuration to track how much product is in a container. In this example, the manufacturer created the distinctions of “Pail”, “Drum,” and “Lightweight Drum” to track how much product is available.

Dimension Definition.jpg

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This option gives visibility to the whole amount of product inventory on hand. As shown below, they have 730 units of this item available available—500 of which are full drums, and 230 of which are under-filled lightweight drums.

Total On Hand.jpgOn Hand by storage unit.gif

Although these original processes were not introduced to the company by Edgewater Fullscope, our team was able to take a heavily customized process from a legacy ERP system and quickly implement it out-of-the-box with Dynamics 365. Find out how easy your ERP upgrade can be by contacting us to request a demo today.

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manufacturing, ERP, Chemical Manufacturing