Keeping track of stock is an essential part of any business, but for hand and power tools manufacturing, this can be made even more difficult by the sheer number of variations, sizes, and models of individual items, all of which have to be monitored, managed, and up-to-date in systems that may be further complicated by selling direct to consumers or in wholesale agreements to retailers, and have to be monitored in multiple areas of a management system. In this article, we will look at some of the key challenges manufacturers face for stock and inventory management, how these problems may occur, and what sort of software and automation that can help to resolve these issues.
According to Research and Markets, the power tools market has grown strongly in recent years, and was set to grow from $39.21 billion (USD) in 2023 to $42.22 billion (USD) in 2024, a CAGR of 7.7%, and Global Market Insights puts the industrial hand tools market at more than $25 billion (USD) with a CAGR of 4.1% between 2024 and 2032.
With the sheer size of the market, and the number of goods, variations, and new innovations being made consistently available both directly to individual customers (for some smaller manufacturers) and at wholesale to retailers (often for the larger businesses or brands), it is not surprising that stock management can be somewhat challenging.
There are a multitude of problems that can occur when stock management becomes more complicated and bloated, especially if your systems have been inherited from a legacy setup that was not specifically designed to handle business growth, increasing product development, or relies on manual entries rather than any sort of automation and digital infrastructure.
For tool manufacturers who are dealing with large scale orders from retail outlets or providers, there are also additional challenges to be faced when it comes to fulfilling their orders, from ensuring the products are available on time (and the materials are ready to be worked), to making sure correct numbers are reached to complete contracted agreements, and in some cases where exclusives are involved, tracking and monitoring to ensure those specific items are available and only sent to the outlets they should be.
As your stock levels grow and expand, and stock management becomes from challenging, it can take considerable time and effort to manage the processes, and should any issues arise, it is often challenging and extremely costly to locate the specific location of the issue and fix it.
Operating as a business in the hand and power tool manufacturing market, you might have found challenges with stock management that include:
As a manufacturer, your stock management must reflect what you have available, and integrate with your resource management so you are able to determine what materials you have, how many items you can create, and when you need to source or order your next material shipment.
When it comes to the customer facing element of your business, you need to ensure that your processes can handle changes in customer demand, the ability to add or edit orders, that you are able to communicate efficiently and quickly with your clients (as well as take opportunities to up-sell or promote new goods), and have a good idea of what trends (seasonal or otherwise) are upcoming so you can create products that your clients are likely to be looking for next.
Digital tools and technology can make an enormous impact on hand and power tool manufacturing industries when it comes to stock management, customer engagement, and even brand development.
The right tool for the task should, at a minimum, provide you with:
These tools will not only allow you to streamline your processes and reduce human-error in the ordering process (reducing material wastage on manufacturing unnecessary products), but also allow you to monitor what is selling well, when your customers are most likely to order (allowing you to make data-driven decisions on material purchase and prioritise manufacturing runs).
Some of the key software that you should be looking at integrating into your manufacturing business include:
It is important to carefully evaluate the tools and programs that you plan on utilising, as they either need to integrate into your existing digital infrastructure, or you need to develop a planned evolution for your business that supports your projected growth.
Manufacturing businesses are held to high standards for quality, materials, and value for money, and the hand and power tool industry is extremely competitive. Setting up your business for success means that you must make the most of the data you gather on a daily basis, be functioning at your most efficient, and have the support of technology that will grow and adapt with you.
All over the world businesses are adopting TEB Apps to help streamline their stock management with in-depth item management tools. TEB Apps will help your business keep track of your stock in real-time as sales are made. Furthermore, your business can use TEB Apps reporting tools to get insights into best-selling items, and sales forecasts to stay on top of your stock. With TEB Apps you will:
Discover what TEB Apps can do for your hand and power tools manufacturing business today, and simplify your stock management with our support. Book a demo and step into the future.
