One of the major uses of the MIP for the TACNA manufacturing company is that it allows the production of enough finished products to support itself, without requiring the need to outsource. By building more plants using MIP, more raw materials can be produced in less time, using the same amount of labor. The MIP also allows for higher inventory levels because the only thing required to build more plants is more machinery and raw materials, allowing you to have a large variety of products on your shelves, without the need to have your inventory constantly fluctuating. The MIP streamlines the inventory process and makes inventory easier.
Another way that the manufacturing company uses MIP is to eliminate the cost of shipping by allowing the manufacturer to pre-sort and package products and ship them individually. This saves the company money on freight fees and shipping costs. It also makes for quicker delivery of products to your customers. Once the items are packaged and shipped, they only need to be shipped from one location, saving on packaging, transportation, and re-use. Because the items are already packaged and shipped, the MIP no longer has to pay for storage space or costly trucks, eliminating the need for extra trucks or machinery. Lastly, the entire process of storing and shipping products saves on the bottom line because it eliminates the need for more warehouse space and employees for storage, as well as more shipping vans, and therefore, saving on the company’s payroll.
If the manufacturing process is more detailed than simply applying a mold and pouring the first batch of raw materials, then a MIP will help speed up the production line. If the MIP simply mixes and molds all the raw materials into the perfect batch of goods, then the production line can be faster. When the goods are finally ready to be shipped, then it doesn’t matter where the manufacturer gets his goods from, because he can simply ship them from his warehouse using any carrier that he needs, saving him even more money and energy.
The MIP enables the manufacturer to control costs and improve efficiencies when it comes to labor. When labor costs are controlled, the quality of the end product can improve as the quality of each batch of raw materials is improved, thereby reducing waste and making the manufacturing line faster and better. When there are fewer waste items, then the manufacturer is able to provide goods that are consistent in quality and consistency, meaning that he can reduce inventory to a bare minimum. A bare minimum in inventory means more profit for the end consumer, meaning that the MIP saves the manufacturing company money and that means bigger profits for the end consumer.
Lastly, when the MIP is applied to make-to-order goods, then the process of inventory management is eliminated, again saving the manufacturing company money. When inventory is eliminated, the company can make sure that the ships only the best goods to the customer. This means that the goods are on time, the customer is happy and the business is thriving. The MIP can greatly improve the quality and profitability of any business manufacturing or distributing goods, whether they are goods that need to be manufactured or goods that are already produced and ready to be shipped.