Friday, November 26, 2010

Challenges to the Manufacturing, Distribution and Retailing Industries

Challenges to the Manufacturing, Distribution and Retailing Industries

Is your company facing any of these challenges to your operations?

  • Outsourcing production overseas to lower operating cost.
  • Starting to bypass the distributors selling directly to the Retail industry.
  • Opening outlet stores to they sell excess inventory.

  • Bring components from overseas becoming semi-manufacturers selling to the Retail industry.
  • Selling on the web B2B and B2C serving their clients and the Retail industry.
  • Opening outlet stores where they sell excess inventory.

  • Buying directly from the manufacturer in the USA bypassing the distributor to lower cost of goods.
  • Buying directly from overseas vendors bypassing both the manufacturer and the distributor.
  • Selling on the web B2B and B2C serving their clients and the Retail industry.

  • Wrong shipment carried duplicate freight, can become excess inventory, and affect customer satisfaction.
  • Misplaced inventory might not be sold and can become excess inventory.
  • Excess inventory carried additional cost and can affect the line of credit.

  • The web can be a double edged sword: it can increase sales or result in business disruptions.
  • Not having automated warehouse will result in incorrect shipments and excess inventory.
  • Not having modern back office system can result in buying the wrong products resulting in excess inventory.

  • Very often the search is left to the IT department who does not have the complete business overview resulting in choosing the wrong software.
  • All demos look very good since they are given by professionals who were trained to give them.
  • Just because software looks good does not mean it is appropriate for the end user.

Buying Software
  • Search committee of heads of department and computer department should be established.
  • Business requirements’ list should be put together and addressed at the demo.
  • Before buying the software visit vendor reference accounts and meet the CEO, CFO, and Computer Manager.

Next Steps:
Often a properly chosen and implemented software solution that is completely integrated can help a business overcome these threats and expose new opportunities.  That being said, sometimes software is the right solution to address these threats, sometimes it is not, and sometimes it's just part of a broader solution. 

Monday, November 22, 2010

The Myths of Outsourcing (Part 3 of 3)

Dolvin partner Optimum Solution's highlights some myths about outsourcing payroll.  Below is part 3 of 3 stories highlighting real life success stories.  Click here to learn more about Optimum Solutions.

Myth #3:  “If we outsource, it is more cost-effective”

FACT:  The true cost behind outsourcing is often difficult to predict.  Over time, a company will be faced with numerous hidden costs, fees for every report needed and price increases solely at the discretion of the outsourcing provider.  Companies will also often be presented with additional fees for W-2 filing, tax filing and printing of checks.  By bringing payroll in-house, many companies will see a return on their investment in as little as one year, as the purchase price of an in-house system is often equivalent to the company’s fee for only one year of outsourcing.   

Companies will often falsely believe that they will need to hire additional employees if they bring payroll in-house.  The truth is that the same staff responsible for outsourced payroll information can easily manage the duties needed for an in-house payroll system.

Companies are also often concerned that they will need additional IT staff if they bring their payroll in-house.  Most companies must have basic IT support in order to maintain equipment needed for daily activities.  With in-house solutions, all support and maintenance is provided directly by the vendor, and is completely automated, therefore no additional IT staff is required. 

Optimum Solutions customer:

“Before I purchased the software, I had to justify it…but that was easy to do once I illustrated how quickly we would receive a payback – we saw a return on our investment in less than two years.”
Donna Pickerill
White Hydraulics, Inc. 

Many companies have discovered that bringing payroll in-house can save a significant amount of money and receive superior support, thereby providing more value-added services to the company.  If you would like to learn more about Optimum Solutions’ full-featured in-house applications for the Windows or iSeries platforms, please contact us at 800-489-6026 or visit our website at for more information.

Friday, November 19, 2010

10 Common Issues with the Supply Chain.

10 Common Issues with the Supply Chain.

1.     Borrowing money:
Sale and inventory information are a major factor when getting financed. Not having the proper information will result in the main lender declining the loan or line of credit. Borrowing the money in secondary financial markets will result in high interest and increase operating costs.

2.     Cash flow issues:
Not having the right collection tools, the Account Receivable invoices become overdue, resulting in cash flow problems and financing at high interest rates.

3.     Buying based on "guesswork":
Not having accurate computer information will result in purchasing the wrong products or quantities and the unsold inventory will "collect dust" on the shelves in the warehouse.

4.     Purchase order verifications:
When inventory is received at the warehouse, not being able to scan and verify it against the purchase order will result in excessive paper work, higher labor cost, and possibly missing the early payment discount date offered by the vendor.

5.     Misplaced inventory:
When consolidating items on shelves, inventory often gets misplaced resulting in unnecessary replenishments. At physical inventory time, when found, this "lost" inventory often becomes excess inventory that might not be sold.

6.     Wrong shipments:
When incorrect products or quantities are shipped it creates the "domino effect" of business disruptions. Returned products carry double freight bills and the invoices will not be paid until credits and adjustments are issued. If the shipped inventory is replenished, often it will become excess inventory.

7.     Production coming to a grinding halt:
Not having accurate inventory control will result in parts' shortages that can bring the assembly line to a grinding halt, resulting in business disruptions.

8.     Profit or loss when using the Web?"
The Web can be a key to sales' success or business disruptions. Using the Web can increase sales drastically, or result in disruption of the back office business flow. Having outdated software will result in incorrect shipments, shortage of saleable items or excess inventory.

9.     Inaccurate sales information:
An outdated computer system will produce inaccurate information affecting future business planning and buying patterns.

10.  Disaster recovery:
If a disaster occurs, not being able to provide accurate computer information to the insurance company will result in devastating losses.

Click here to learn more about how Dolvin Consulting and how we help you better manage your enterprise.

Monday, November 15, 2010

The Myths of Outsourcing (Part 2 of 3)

Dolvin partner Optimum Solution's highlights some myths about outsourcing payroll.  Below is part 2 of 3 stories highlighting real life success stories.  Click here to learn more about Optimum Solutions.

Myth #2:  “If we bring payroll in-house, we have to become tax experts”

FACT:  Most full-featured in-house payroll applications will maintain and update all tax tables and calculate the necessary taxes, thereby automating the tasks of tax filing.  With an in-house system, there is no need for your staff to become tax experts.  In fact, an in-house program can simplify the process – making electronic tax filing available at the click of a button. 

Optimum Solutions customer:

“I was a little nervous to begin tax filing on an in-house system.  I soon found out that the tax information is updated by Optimum – it’s all built into the program.  Also, the support personnel at Optimum answered every question I had, it was just so easy.”

Lesa Kloski
Assistant Controller
Tredit Tire & Wheel Company, Inc.

Friday, November 12, 2010

Just in Time Inventory Control Systems

Just In Time Inventory Control Systems are about eliminating waste and gaining the most value out of your operation. Just In Time Inventory Control Systems provide the platform for Lean Manufacturing, enabling you to have the exact amount of materials and inventory you need, when you need it- no more and no less.

Inventory remaining in your warehouse collects dust and cost instead of revenue. In addition to lost profit from administration, financing and storage costs, inventory in your warehouse has to be insured or is exposed to risk such as fires, floods, obsolescence, and market depreciation. And raw material inventory remaining in the warehouse for a sluggish product can be a significant drag in markets that demand fast product changes.

Competitive markets reward fluid operations, responsive to costs and opportunities, requiring assets that produce revenue. A fluid, responsive operation enables you to move product quickly, based on demand with purchase orders in step with inventory movement. The end result? Faster movement of accurate quantities of inventory, responsive to your markets, with faster time to revenue.

Just In Time Inventory Control Systems are delivered through a combination of software and services, supported by experts with wide experience in the business of manufacturing and distribution. The bottom line: we bring hand's-on understanding, value and experience to your unique business challenges, working closely with you to implement the solution that works best.

With Just In Time Inventory Control Systems, you quickly automate procedures that:
·         Scan inventory upon receipt at the warehouse
·         Enable purchase orders to be available on a real time basis
·         Allocate incoming inventory to customer orders
·         Ship inventory as soon as it's received at the warehouse dock
·         Confirm the shipment of merchandise to customers
·         Easily track that the correct items and quantities were fulfilled

Part of an Enterprise-Wide Solution Specializing in helping manufacturing and distribution companies increase efficiency, improve customer service and augment cash flow. We do this by delivering an integrated combination of software and services for inventory control and inventory management including: Supply chain management, Manufacturing software, Distribution management, Inventory tracking, Warehouse management and Logistics, Just in time inventory control, Retail, Supply chain management, Ebusiness software, Sales Force automation & CRM, Purchase order management, plus a team of experts in the business of manufacturing and distribution. The bottom line: we understand your business challenges and work closely with you to implement the solutions that work best for your company.

We have been providing solutions since 1998.  We were here for you then, we're here for you now and we'll be here tomorrow. 

Dolvin Consulting Enterprise Software Solutions, powered by VAI S2K Family of Products and the leading technologies developed by Vormittag Associates, Inc. (VAI). Vormittag Associates Inc. (VAI) is a Premier IBM Business Partner and award winning software developer. The company's enterprise software product, S2K, offers a suite of dynamic applications for the wholesale distribution, manufacturing, and retail industries. Designed for the small to mid-range market, S2K is in use in over 700 companies worldwide. Most important, the flexibility and adaptability of S2K enables Dolvin Consulting Solutions to easily accommodate even your most pressing and complex business requirements.

Wednesday, November 10, 2010

The High Cost of Screwing Up a Software Implementation

They say the devil is in the details, and nowhere is that more true than in software implementations. Read this cautionary tale from TEC Analyst Chris Tanner to discover how getting just one important detail wrong in an IT project can cost time, money, and maybe even your job.

The essence of the article points out how important your ERP solution provider is and how much they concentrate on your needs and not just their commission.  As the author points out a very critical license issues was overlooked causing major headaches later on. 

Picking the right software involves not only the software, but the software provider. 

It is critical that you have a good working relationship with the provider and you have conversations with not only sales people, but managers, and yes owners.  Privately held companies, such as VAI pride themselves on giving all customers access to all team members from top to bottom.  It is one way in which VAI and business partner Dolvin distinguish themselves from the masses.

If you are not able to meet with the owner of the company and review your concerns, issues and agenda, then who are you working with?

Monday, November 8, 2010

The Myths of Outsourcing (Part 1 of 3)

Dolvin partner Optimum Solution's highlights some myths about outsourcing payroll.  Below is part 1 of 3 stories highlighting real life success stories.  Click here to learn more about Optimum Solutions.

Myth #1:  “If we outsource, someone else is doing all the work”

FACT:  Companies often have the false impression that they will no longer need to worry about any payroll functions if they decide to outsource.  The reality is that companies are still responsible for providing the outsourcing company with the essential information.  The company must collect and input items such as time, vacation, and pay information and then transmit the information for the outsourcer to print the paychecks.  As a result, all of the payroll functions are being completed internally.

Another issue that can arise with outsourcing is the loss of control over the payroll process. Service providers mandate that you meet their deadline and work on their schedule, not your own.  If there is a problem with submitted payroll information, the company must alert the outsourcer of the error and wait for them to correct it – potentially delaying your payroll.

Full-featured in-house payroll applications automate everyday functions such as tax reporting, vacation accruals, time input, direct deposit and garnishments.  The current personnel would be completing the same tasks, whether the company chooses to outsource or bring the payroll process in-house.

Optimum Solutions customer:

“While outsourcing, my staff still had to process the payroll, which is up to 90% of the work…I always thought outsourcing was better, until I really looked at the features and benefits of bringing payroll in-house with Optimum.”
Bruce Kalem
Milan Express Company, Inc.

Companies today have two options for paying their employees:  outsource their payroll or bring it in-house.  Companies are often drawn to payroll outsourcing by their promises of saving the company time, money and resources.  However, those companies quickly find the hidden fees and lack of flexibility and control after they outsource.  If this applies to your company, take the time to learn more about the “myths” of outsourcing and how an advanced, in-house payroll solution can provide complete control without the hidden fees.

Thursday, November 4, 2010

Inside ERP's Top 10 questions to ask when choosing and ERP solution.

Have you put together the most important questions to ask your potential ERP vendors?

Before buying a mid market or enterprise-level ERP system, you must get answers to these top 10 questions compiled from our ERP analysts who speak with 1000's of Finance, Manufacturing and Operations buyers. Learn what other ERP buyers have said should be part of the Top 10 questions to ask when choosing an ERP solution!
Not sure if you will agree with Inside ERP's actual questions, but this relatively quick reference does help.  All companies should work with their trusted advisor to come up with their own top 10 questions.  The questions should be broad enough to allow comparison between multiple vendors and narrow enough to provide real answers.

Wednesday, November 3, 2010

Technolgoy Evaluation Centers reviews Vormittag's S2K Enterprise software

Technology Evaluation Centers (TEC) has now certified Vormittag (VAI’s) S2K Enterprise software.  You can be assured that the data TEC provides about its certified products conform to a well-defined standard of accuracy. When a vendor’s product is TEC Certified, it means that a trusted, independent third party has seen the product up close.
This is a well anticipated step that will allow organizations interested in finding the best fit software to cross compare S2K with other industry solutions.
Follow the link above to download the whitepaper.

Tuesday, November 2, 2010

Who does Dolvin Consulting serve?

As you are well aware, in today’s business environment, it’s essential for businesses to increase profitability through increased sales and great customer service while maximizing operational efficiencies.

Ask yourself if your business benefit from:
·         A more efficient and integrated Ecommerce system?
·         More precision in your warehouse and inventory control?
·         Information at your fingertips, allowing more immediate & precise customer service responses & decision making?

If you answered yes to any of these questions, we can help your organization save thousands of dollars each month.

Dolvin’s mission is to serve our clients by making their lives easier and more productive by providing them the resources that allows them to achieve their goals. We hold our selves accountable to exceed our client’s expectations and we take extreme pride in providing the highest quality service of which we are capable.

Our primary service is the installation of Integrated Enterprise Mangement Systems that allow our clients to have real time access to key information they need to effectively manage their businesses.

With our Partners Vormattag Associates, Inc. and IBM, we can provide you with the most effective, comprehensive and cost effective enterprise management system available in the mid sized company market today.

We use a consultative approach that ensures that our system is customized specifically to meet your needs. We’ll work with your team to ensure that you immediately start gaining the efficiencies that your business needs to maintain and increase it’s competitive advantage. 

If your business could benefit from a state of the art, enterprise management system that will help you beat out the competition or if you simply want additional information please complete the contact request form. We’ll follow your instructions.

Thank you for your response.
Best Regards

President – Dolvin Consulting, Inc.

Monday, November 1, 2010

Sweet smell of success

In a recent post on Linked-In, Christine Randle talks about how a VAI solution helped a large Fragrance and Beauty Distributor Enjoy the Sweet Smell of Success.  Rapid growth in operations often needs new software solutions and more importantly software that can grow with your business.

Why this article is most iinteresting is how it highlights how efficiencies in operations and more precision in warehouse and inventory control enable businesses to expand. This hopefully means new jobs and improved local economy.

VAI direct link to story.