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Newman Technologies

Auto Inventory Accuracy at Newman Technologies: 98% Achieved

98%Inventory Accuracy

The Challenge

Newman Technologies, an industrial machinery manufacturer, struggled with chronically inaccurate inventory records — a persistent challenge in discrete manufacturing where hundreds of component SKUs must be tracked across receiving, storage, and production consumption. Manual cycle counting and spreadsheet-based tracking created discrepancies between system records and physical stock, leading to unplanned production stoppages when parts recorded as available turned out to be missing or mislocated. The downstream effect was compounded: emergency procurement at premium cost, excess safety stock to buffer against uncertainty, and working capital tied up in inventory that couldn't be trusted.

The Solution

Newman Technologies partnered with Rockwell Automation to deploy an automated inventory management system designed to bring real-time accuracy to their parts and materials tracking. The implementation replaced manual inventory processes with automated data capture — likely leveraging barcode or RFID scanning integrated into receiving, storage, and point-of-use locations on the plant floor. Rockwell Automation's platform connected inventory data to production scheduling, giving planners a live view of stock positions rather than relying on periodic physical counts. The system was integrated with existing manufacturing operations to ensure that inventory transactions were recorded at the moment of movement, eliminating the lag and human error inherent in manual recording workflows.

Results

The implementation delivered a measurable step-change in inventory reliability:

  • 98% inventory accuracy achieved — a significant improvement from the prior manual baseline
  • Reduction in production delays caused by missing or misrecorded components
  • Decreased reliance on excess safety stock, freeing working capital previously locked in buffer inventory

Beyond the headline number, the 98% accuracy rate represents near-elimination of the discrepancy events that previously triggered emergency procurement and line stoppages. For a manufacturer operating with tight production schedules, this level of data fidelity translates directly into improved on-time delivery and more predictable operations.

Key Takeaways

  • Automated data capture at every transaction point is the foundation — accuracy gains require recording inventory movements in real time, not after the fact.
  • Integration with production scheduling multiplies the value of accurate inventory; the data must flow to where decisions are made.
  • Small and mid-sized industrial manufacturers can achieve enterprise-grade inventory performance without custom-built systems by leveraging established automation platforms.
  • Establish a clear baseline accuracy metric before implementation so the improvement can be quantified and the business case validated post-deployment.
  • Inventory accuracy above 95% is generally considered the threshold for reliable MRP/production planning — 98% puts Newman Technologies in a position to plan with confidence.

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