3 Steps to Tackling Material Issuance and Backflushing

Grant Ludema
| 11/12/2024
A woman and her coworkers work in a factory, emphasizing the importance of material issuance and backflushing for efficiency.

The path to inventory accuracy and cost control isn't as far out of reach as manufacturing leaders might think.

Material issuance involves allocating raw materials for production while backflushing automates the process of updating inventory by deducting materials based on the finished goods produced. For manufacturers that want to scale, managing material consumption is a critical challenge.

 

The solution? Mastering the essential practices of material issuance and backflushing can help keep operations running smoothly, especially as production grows. By systematizing these processes, manufacturing leaders can strengthen operations and achieve sustained growth for long-term success.

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Why material issuances and backflushing matter

Why material issuances and backflushing matter

Manufacturers frequently encounter issues related to material consumption accuracy, including:

  • Inaccurate inventory records
  • Reduced production efficiency

Not tracking consumption accurately can lead to inefficiencies in production, operations, supply chain management, and even financial planning.

Poor tracking can result from several factors, such as:

  • Discrepancies in bills of materials
  • Lack of training for staff
  • Inconsistent processes across teams
  • Timing discrepancies or unaddressed exceptions

How can manufacturing leaders overcome these challenges?

Systematizing material issuances and backflushing is a critical step in resolving these pain points and doing so can help affirm accurate inventory, control costs, and facilitate smoother production efficiency.

3 steps to confidently tackling material issuance and backflushing

3 steps to confidently tackling material issuance and backflushing
Addressing common material issuance and backflushing issues starts with a commitment to consolidating processes. This consolidation process includes improving training, standardizing procedures, and implementing error-proofing measures to overcome obstacles.

The following practical steps can help manufacturing leaders get started.

Step 1
Step 2
Step 3
Step 1
Analyze existing processes

Analyze existing processes

Manufacturers should begin by conducting a root cause analysis of any current inefficiencies. Understanding where the gaps are can help teams create targeted solutions to reduce the level of variability in material issuance.
Step 2
Develop clear process descriptions

Develop clear process descriptions

Clear, consistent process documentation reduces inconsistencies and establishes a stable foundation for scalable growth, which is essential for maintaining accuracy across the board.
Step 3
Implement technology solutions

Implement technology solutions

A technology solution designed for manufacturers can automate material tracking and backflushing and significantly reduce human error. Real-time tracking gives manufacturing leaders better control over inventory and costs, and it can help reduce process variation and boost overall efficiency.

The value of systemizing material issuances and backflushing

The value of systemizing material issuances and backflushing

A systemized, structured approach to material issuance and backflushing provides manufacturing leaders with better visibility into inventory and raw material use, which is essential for accurate cost recognition and maintaining margins.

This approach offers several key benefits:

  • Inventory accuracy
    Streamlined material issuances and backflushing help create standardized data for more accurate inventory tracking. With clearer insights into how materials are consumed, teams can minimize errors, prevent shortages, and avoid overstocking.
  • Cost control
    Having systemized processes in place helps manufacturers better understand the cost of production in real time. By improving accuracy in material consumption, businesses gain better control over expenses, which helps reduce waste and improve overall profitability.
  • Enhanced visibility
    Visibility is critical, especially as manufacturing operations grow. Systemized material issuances and backflushing create a clearer view of production activity and help teams identify bottlenecks or inefficiencies early.

Benefit from technology made from for manufacturing with Crowe

Benefit from technology made for manufacturing with Crowe

Crowe combines process expertise and technology integration to help manufacturers optimize material issuance and backflushing. Crowe specialists have extensive expertise with the NetSuite platform, and they help organizations implement NetSuite advanced manufacturing solutions to streamline operations, reduce errors, and provide real-time visibility into material use. NetSuite solutions can also automate tasks like material tracking and backflushing and help manufacturers improve accuracy, control costs, and boost efficiency.

From initial training and process refinement to full system integration and ongoing support, Crowe delivers the skills manufacturers need to maximize technology investments and achieve long-term success.

Streamline systems, gain insights, and boost efficiency with support that stays with you

NetSuite specialists at Crowe are ready to help you apply automations, explore industry solutions, and remove hurdles for continued growth.

Contact us to get started

We're here to help position your business as a leader in manufacturing.

Grant Ludema
Grant Ludema
Consulting