Monday, June 25, 2012

The Need for Precision in Inventory Control

It is critical to know, in real time, exactly where a product is located within the warehouse.  It is also crucial to have a precise measure of how much inventory remains on hand in each barrel.

According to Berjé’s Sanghvi, “This implementation gave us the back-end capabilities we needed to enhance our customer service capabilities.  Notably, employee efficiency and productivity— essential elements of customer service—have improved as well.  With VAI’s expert support, the WMS upgrade has been a smooth, uncomplicated experience delivered on time and within budget.  VAI’s S2K for WMS continues to reap unforeseen corporate benefits across every dimension.”

The company sought an application capable of full integration with its current manufacturing and distribution systems.

The WMS implementation has yielded the desired improvements in inventory control and customer order fulfillment.  Inventory accuracy now approaches a precision level of greater than 99%, enabling Berjé to keep inventory at optimum levels without incurring the expenses associated with carrying unnecessary amounts in stock.

Berjé needed a foolproof means of ensuring timely and accurate product shipments. 

Product movement further complicated the firm’s search for a solution.  At Berjé, products continually move around a two-story facility that warehouses scores of containers at any given time.

“Accuracy is important from a customer relations perspective,” said Ajay Sanghvi, Berjé’s Vice President of Operations.  “However, it is mandatory when dealing with any type of chemical. We must know both the amount and location of all substances on hand at all times.”

“We faced a tall order when searching for WMS packages,” said Berjé’s Sanghvi, “but from our experience with VAI we knew we had to look no further. VAI had the capacity to design a cost-effective, customized solution that integrated fully with our existing ERP capabilities with minimum modification. We knew the VAI system would deliver superior performance because of their staff’s commitment to fully understanding how Berjé’s processes operate.”

Berjé chose VAI’s S2K for WMS with ticket processing because it allowed the company to achieve all its objectives in one comprehensive solution.  VAI’s software provides both accurate inventory counts and real-time inventory locale information.  The WMS upgrade seamlessly integrated with the company’s existing S2K for Manufacturing package.

Relative to customer orders, Berjé can now track every transaction in detail and, by sales order, identify the precise container from which the order was fulfilled.  The availability of such detailed information enhances quality control and facilitates compliance with regulations governing accountability for chemicals.  Deliveries are more accurate and timely as well.  In fact, virtually every aspect of Berjé’s business has benefited from the implementation including accounting, production, warehousing, distribution and manufacturing.

Some things are noteworthy from the above article. 

Number one- The relationship between Berjé and VAI.  Clearly VAI is a trusted partner that took the time to listen and provide the right solution for the challenges.  Really important is this relationship.  Any organization needs a trusted advisor.  Someone that can take an objective look and connect the dots.  The implementation was straight forward, because there was a good fit with minimal modifications.

Number two- There was a real need for accuracy.  The system delivered.  Simply stated and great benefits.  Like improved customer service.  You remember your customers?  It is the reason why you do what you do.  Accurate shipments help build customer satisfaction and loyalty.

Number three- Employee efficiency and productivity sound like nice results too.  I am sure that contributes to a better bottom line.

Number four- 99% or better inventory accuracy.  Not only can they find their stock, but it will be what they expect which increases the efficiency of ordering and helps with cost control.  Enhanced quality control is a desirable by product here too.

Dolvin Consulting works with VAI and IBM to deliver solutions like the one above to help companies like yours compete more effectively in today’s tough economic climate.  Contact us today to see how we can help you achieve similar results.  No false promises, no sales pitch.  Question and Answer to determine if there is a good fit between your challenges and the solutions available.  You decide if it makes sense.

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