Inventory management can be a challenge for many firms, but inventory technology can help boost the manufacturing sector. As industrial activity continues to expand in the country, it will be more important for companies to succeed and stay competitive. Managers will need effective inventory management software to maintain product levels and avoid shipping delays.
Canadian manufacturing experienced a decrease in production after a drop in U.S. demand, The Globe and Mail reported. A weaker Canadian dollar will help boost the sector.
"The manufacturing sector will likely take a breather in the near term, given the declines seen in the forward-looking indicators and the fact the American economy - where a large chunk of Canada's manufactured products are destined - is expected to have ratcheted down in the second quarter," said Dina Ignjatovic, an economist, according to The Globe and Mail. She added the long-term outlook for manufacturing sales was bright and anticipated higher demand for Canadian products in 2014.
Despite the positive forecast for the future, April orders in the country dropped and inventories grew for the fourth consecutive month. The overstock of inventory was fueled by aerospace, computers and electronic products. Although inventory levels were high, the sales-to-inventory ratio rose as well.
Growth in electronics manufacturing
Although manufacturing growth in the country has been slow, sales of the new BlackBerry 10 have propped up the electronics sector, according to IT World Canada. Canadian electronics manufacturing has struggled to maintain profitability for years. While companies were conducting research and development in the country, most production was occurring in other locations. As sales of the BlackBerry 10 continue to rise, the sector is expected to continue expanding since it is the largest manufacturing company in Canada.
The smartphone market is competitive, and the new BlackBerry is fighting to maintain its market position against Microsoft's new Windows Phone. However, the BlackBerry is performing well in developing markets such as the Middle East. A significant portion of the smartphone's revenue comes from overseas, and an economic downturn in the Middle East could impact the success of the electronics sector.
With competitive electronics products that are sold overseas, firms need manufacturing inventory software to ensure the right levels of products at all times. Depending on the item, products can have different life cycles, and manufacturers need to have the right amount of inventory and be able to fulfill shipments on time.