Inventory Balances

If you are in the food industry you already know that one of the primary challenges is your inventory level.  You need enough supplies to satisfy customer demand, but not too much due to obvious reasons of expiration dates and potential spoilage. 

Enterprise Resource Planning (ERP) solutions are designed to streamline operations and provide a central repository of information to effectively manage inventory processing.

A case study - VAI S2K Food: Hillcrest Foods, Inc.

Do you walk around and “look” at inventory to guess and gauge usage and need?

Many food distributors do just that.  They have been in business a long time and there is built in knowledge of customer and seasonal demand.  What moves, what does not and what to do with surpluses or not having sufficient supply and cost expense of expediting replacement inventory?

How does your organization handle recalls and FDA requirements (FDA Food Safety Modernization Act - FSMA)?  Do you have the ability to include all lot numbers on products and paperwork?  How much time and effort does it take you to process a recall?  What about the paperwork and certificates of origin?  Where are these documents found and how are they linked to your inventory?

If you are processing food inventory manually, then your ability to meet the FSMA requirements will be limited and expose your business to great risk and regulatory nightmare.

How efficiently do you process your distribution, truck loading and routing?  What tools does your ERP solution provide to ensure your customer needs are met?  How long does it take to train your workforce?  Is the equipment and process intuitive?  How many times during the day do they have to look up information and how much time does it take?

Handling inventory is a primary focus of food distributors as is financial processing.  You need to service your customers, yet also manage their credit usage on the Accounts Receivable (AR) side and expenditures via Accounts Payable (AP) on the vendor/supplier side.  The General Ledger (GL) ties all the various aspects of the financial reporting and forecasting together.

If these topics strike a nerve with your organization and you are curious if you are doing everything reasonably possible to empower your workforce and drive efficiency in your operations, then it is time to contact Dolvin Consulting.  We work with industry experts to help you look at and evaluate your organization from a fresh perspective.

We look forward to serving your needs.

The Season for ERP Solutions

The season for buying, purchasing and the season for inventory control are now.  The season for change is now.  Now is the time for the changes you need to make to better prepare yourself and your organization for the next season. 

 

The season of change is now.

 

When a business has a consistent yearlong demand for its products, planning is a little easier with the right tools.  After all if you pick, pack and ship a thousand units a month and you know your suppliers lead time and balance order point with applicable discounts, the purchasing effort can be automated.  You can ensure that you have enough inventory to meet demand, but not too much that warehouse space is wasted or consumed where other products could be better stocked.

 

When a business’ products have seasonal demand, the challenges increase.  Add another level of complexity when the seasonal products are perishable, such as found in the food industry.  Productivity has increased importance as does handling.  The need to drive operational efficiencies increases as the penalties for not doing so become increasing cost prohibitive. 

 

Some organizations in food processing are still using the look-and-see method of reordering.  Someone who has been in the business a relatively long time walks through the warehouse or is able to keep a running count in their head and orders what they think is right at that time.  Chances are if they have been doing this long enough they may be accurate.  They may also not be.  What happens when this person goes on vacation?  What happens if they take a leave of absence?  What happens when they retire or are suddenly not able to work anymore? 

 

How do you transfer someone’s gut instinct into a reproducible formula for optimum inventory levels?

 

The challenges of the supply chain have not fundamentally changed since the beginning of commerce.

 

What has changed is the need for quicker access to greater and greater amounts of information.  The need for mobility and anywhere access.  Analytic analysis of the repository of information collected to identify and respond to new business demands.

 

 

The season of the switch.

 

 

New business environments require a comprehensive set of integrated, cross-functional business processes.  There needs to be an alignment of both strategic and tactical operations to improve productivity and insight, reduce costs through greater efficiencies and flexibility in computing environments. 

 

Industry requirements are constantly changing and new systems are needed to meet those demands and reduce risk through improved financial management. 

 

The benefits are more profitability, peace of mind and a restful night of sleep.

 

The solution starts with a solid foundation of financial management.  Add to that advanced options in distribution management.  The end result is a system that integrates the entire operation.  Better integration means superior customer service levels. 

 

A happy customer should be the goal of any solution.

 

Inventory management with comprehensive sales analysis and forecasting enables a more strategic approach.  Are you achieving your goals for inventory turnover?  How well do you meet customer demand?  Do you have what they need when they want it?  Do you have excess inventory taking up space and increasing overhead?

 

There are different seasons for inventory and seasons for Enterprise Resource Planning (ERP) solutions. 

 

What worked well years ago may not be able to keep up with demand or the changing landscape of commerce today.  The overhead of maintaining an older system can often outpace and out cost a new system optimized for your industry.

 

All businesses struggle to some extent somewhere along the business cycle.  Each business has their challenge spot.  A fresh set of eyes and thorough analysis can reveal these bottlenecks and open the door to increased efficiencies and profits.  Profits that can be reinvested to further drive efficiency. 

 

Experience has shown that the more of any business that is integrated into a single system the better that organization is capable of operating.  What we do not know is where your organization struggles without talking with you. 

 

Is your season of change upon you now?  How will you address the challenges of the next season?

 

Contact Dolvin Consulting today.  Not tomorrow, not next season.  We are here to listen and help.  We are not here to tell you how to operate your business.  We are a resource that you can utilize to identify areas of improvement that will help you compete more effectively with your competition enabling you to fulfill your customer’s needs.  A happy customer is a loyal customer.

 

Control and Visibility

Is there a way to achieve improved productivity, industry compliance and increased profitability?  At the same time?  These goals are not mutually exclusive and in particular the food industry has added pressure from an extra layer of compliance needs with the implementation of the recent act by the Food and Drug Administration (FDA).

Food Distribution and Manufacturing company’s jobs became a bit more complex after January 2011 when the Food Safety Modernization Act was signed.  This “Act” placed added pressure on food manufacturers and distributors to ensure a safe food supply chain.

 

The law gave the Food and Drug Administration (FDA) the power to order recalls of contaminated food and request records from food organizations to provide reports related to the manufacturing, distribution and packaging of any product. If your company sells a food product and the FDA uncovers a problem with it, be it contaminated or expired for example, the government can request all of your records.  If you fail to provide these records, your company can be banned from selling that product. Furthermore, the FDA has the power to suspend and shut down your business.

 

These are not pleasing thoughts for an industry already struggling with economic issues, high labor costs, overhead, and cutthroat competition.  Margins are small and volume is needed to make a profit.

 

Enterprise Resource Planning (ERP) solutions are often the rescue of these organizations.  Whether it is a new solution or upgrade of an existing solution, ERP solution providers are answering the call for compliance while at the same time they typically reduce the manpower needed to achieve results via bar-coding and automation. 

 

ERP solutions are being leveraged to help with record keeping of purchases, manufacturing, inventory, and pick-pack-ship processing. This automation also helps with rebates, pricing and quality control testing and record keeping.  The transactions and testing can be documented in the case of an audit.

 

Record keeping is something that computerized solutions do very well.  There may be some additional data collection, but you will utilize the system to do this instead of pen and paper. 

 

Warehouse Management Systems (WMS) are often coupled with an ERP solution to streamline the automation process and reduce labor overhead.  They become integral components.  Some are third party solutions while others are fully integrated.  Fully integrated solutions are almost always preferable if they provide the functionality needed.  The reduction in overhead in integration and maintenance often makes up the financial difference.  If your ERP solution does offer this module or equivalent, then it is time to perform an evaluation of what else you may be missing.

 

Control and visibility of inventory, product movement and operations are key components to an efficient operation.  Efficient operations lead to reduced costs and higher profits.  Profits that can be reinvested in your organization to gain a competitive edge.   

 

Dolvin Consulting works with industry experts to find powerful solutions that will enable your organization to break through the glass ceiling that is holding you back from growth.  Contact us today to see how we can help.  That is why we are here and how we deliver value.

 

ERP Efficiencies, Accuracy, Timeliness

VAI Customer Quote:

“VAI’s S2K software allowed us to reach phenomenal efficiencies across the organization. The S2K installation dramatically improved nearly every part of our business – from accounting and logistics to inventory and warehouse management. By automating many of these key functions, our team can focus on critical aspects of our business such as sales and customer service. And we feel confident that we can continue our impressive growth trajectory knowing that our business is running as smoothly and efficiently as possible.” Sal Battaglia Director of Operations, Seacore Seafood

Read the full review by clicking this link.

Thoughts:

All Enterprise Resource Planning (ERP) solution providers claim they can increase efficiencies.  Generally they are correct, if their solution is a good match for a given organization’s challenges.  Finding that match is the hard part.  It takes time to recognize, organize and document your internal processes so that a great fit is made.  Think of this as finding that just-right pair of gloves.   You try on many pairs until you find the one that feels right while also looking to see how that pair will hold up to use and growth.

 

VAI Key Benefits:

• Rapid implementation.

• More accurate and up-to-the-minute inventory management.

• Real-time consolidated financials.

• Automation of core business functions yielded more time to spend on sales and customer service, allowing for faster growth.

• Timely account receivables management.

• Faster customer delivery rates and reduced order picking time.

• Faster, more accurate order entry.

• Greater inventory accuracy.

• Faster route management processing.

• Full traceability of products.

 

Thoughts:

·         Implementing a solution quickly is a big benefit, but it is the result of careful planning and doing your homework, much like a recipe.  Organize your list, purchase the products, mix carefully, and bake.   

·         In the ERP world, more accurate is a fundamental goal.  Achieving it requires actually using the system as planned.  Have real-time information is a key to staying competitive and providing the customer service your customers are expecting.  This goes for inventory, accounts receivable, order entry, delivery, and all facets of your operations.

·         Automation is the way business stays competitive, fights costs increases, and improves profitability.

 

VAI Customer Profile:

Seacore Seafood is Canada’s leading importer, distributor and custom processor of fresh and frozen fish, seafood and live lobsters. Since 1987, thousands of wholesale and retail customers have relied on Seacore to provide fresh, high-quality seafood directly from the source – whether its’ Alaskan crab legs, salmon from Ireland, Maine lobster or barramundi sea bass from Australia.

 

VAI Situation Summary:

• Manual and offline processes used.

• Labor intensive, time consuming processes such as fish cutting, order picking, order entry, and inventory management.

• Accounts Receivables often delayed.

• Complex transportation logistics with perishable items required more efficient route management.

• Active retail, wholesale and consumer businesses required consolidated financial and inventory views to balance needs and requirements of three distinct businesses.

 

Thoughts:

·         Anything manual is prone to errors, increased costs, and loss of customers.

·         Labor intensive processes are costly.  Some are unavoidable, but all should be managed through your system.

·         You do not have to have all of the answers right away, but you do need to know what you do not know and have a plan in place to address the challenges now and in the future.

 

VAI Customer Objectives:

Fast-growing seafood distributor needed to automate core business processes to drive unmatched growth and improve economies of scale. Seacore also needed to hasten route management, order entry and delivery while improving accounts receivables management and inventory accuracy.

 

VAI Solution and Modules S2K Enterprise for Food with:

• Distribution Management

• Financial Management

• Manufacturing Management

• CRM

• Warehouse Management

• Retail Management

• e-Commerce

 

VAI Third-Party Tools:

CYBRA MarkMagic

 

VAI Customer Results:

• Immediate financial reports

• 85% Current accounts receivables

• Reduced order picking time by 40%

• Greater inventory accuracy

• Integrated retail and wholesale businesses into one system

• Increased manufacturing by 80%

• Improved customer service and web presence

 

Thoughts:

·         Management needs quick, accurate and high level access to key metrics in any business.  Drill down capabilities allow for the details.

·         Faster access to information means customers do not go over credit limits, are engaged more frequently, with more accurate information and build stronger relationships.

·         Some of the greatest cost savings come from having an accurate inventory.  Ordering is done more accurately, you get and therefore your customers get what they want and need in a reasonable time frame.  

·         You avoid under and overstock situations.

 

Final thoughts:

Selecting an ERP solution is the culmination of a careful analysis of your organization’s operations, work flow, people, process and history.  What should be included in this analysis and be on top of the list is why your customers do business with you.  What makes you different?  Why should they buy from you?  If you prioritize the results of a survey, the top answer should be quick, efficient, and friendly customer service.

When you look at your customers with mutually vested interests, then you understand why Seacore found a great partner with VAI.  VAI cares as much about Seacore’s business and operations as they do.  Everything they do is in partnership with Seacore.  Seacore has achieved many great results, but their greatest is the untold bond between ERP provider and ERP user. 

Seacore’s people are empowered and use their new tools to deliver great customer service to their customers.  The customers are happier and return over and over again.  In general a happy customer is loyal and tells others how happy they are.  They have their own challenges, just as you do, but your investment in them are seeds planted in fertile soil.

If you do not service your customers, someone else will.

 

At Dolvin Consulting, we partner with industry experts to first understand your challenges, then second, if the fit is right, bring those solutions to you.  Contact us today to see how we are different.  We believe that we have a mutually vested interest in your success.

 

Food Distribution Software for Food Distributors

The Food industry is unique in its complexity and highly competitive nature.  Food providers are concerned about product movement from supplier to consumer, food safety, increasing throughput, containing costs and the need to drive efficiency in their operations.  Add to those requirements food service regulations and traceability and you can understand why an Enterprise Resource Planning (ERP) solution is a necessity, not just an option.

http://youtu.be/jq5ufE9YD6I

Common requirements of food manufacturers and distributors include:

·         Streamlining operations.

·         Optimize business operations.

·         Goods tracking.

·         Product Labeling.

·         Product quality testing and control.

·         Truck loading and routing.

·         Time constraints.

·         Allocating inventory.

·         Shorts and substitutions.

·         Document generation.

Automating and integrating business processing with ERP solutions includes not only food specific customer service and inventory control, but are likely to include modules featuring/including the following:

·         Financial management.

·         Rebate processing.

·         Distribution management.

·         Manufacturing management.

·         Route management.

·         Warehouse management.

·         Retail management.

·         Direct Store Delivery (DSD) and Fleet management.

·         Sales force automation.

·         E-Business.

·         Business Intelligence.

 

At some point in time everyone in the food industry struggles. 

 

It may be when they have outgrown manual processing or they struggle with warehouse and inventory control issues.  Perhaps they once had a comprehensive solution that they have now outgrown.  Maybe their systems have been patched and included numerous add-ons and now they are frustrated with all the upkeep. 

 

Outgrowing a solution forces organizations to look at same vendor upgrades, in house modification efforts, or the search for intelligence. 

How much is too much, what is the cost of doing nothing at all?  How much overtime is involved with your current operations?  How accurate is the inventory system in place now?  Are your customers asking for Electronic Data Interchange (EDI) or E-Business solutions?  Are you losing customers due to poor customer service?  Can you accurately tell a customer when their product is ready for shipment?  Do your customers receive what they order in an acceptable time frame (their time frame, not yours)?

 

Does your staff tell your customers what they cannot get, what will not work or do they get straight forward answers of what they will get and when?

 

Dolvin Consulting works.  We work hard to help you find and implement ERP solutions that will streamline your operations, reduce costs and help you to become more profitable.  We are not here to tell you how to run your business.  We are here to help you find new tools that will enable your staff to do what they do better, quicker, and with greater efficiency. 

 

Contact us today to see how we can help your team.

Why do so many ERP implementations end up in frustration?

What is ERP?  In the most general terms it is defined as Enterprise Resource Planning system.  Note the word Enterprise.  Here is an important key.  What is an Enterprise?  How big does a company have to be to qualify as an Enterprise?  It really is not a size issue, rather it is a functional issue. 

The functionality of any ERP solution should be matched to the organization.  For example, without knowing anything else, a two person business (small business) would probably function well with QuickBooks or equivalent Personal Computing (PC) program.  An installation of a global SAP solution is not generally needed.  Larger corporations typically fall into a Tier-1 solution platform, which include companies like SAP and Oracle.  Mid size companies should be looking for a Tier-2 solution, like VAI’s S2K solutions.  Small to mid size companies really have to take their time to see if there is a good fit between their challenges and available solutions.  

A solution may work, but may be so rigid in process that your staff cannot function.  The software works, but there are so many screens and steps to process an order that you cannot ship anything on time.  Or just as bad is the solution that has no checks and balances and really would not qualify as an Enterprise solution.   Enterprise solutions integrate the entire organization.

We are talking about an Enterprise solution.  The premise is that your organization has separate departments and/or is separated into functional roles.  This is where the right solution will fit your business.  Often a critical decision must be made and that decision needs to be made early on.  Do we mold our business to the software or modify the software to match our business? 

Resources needed.  Sometimes the software is great, but the Salesrep rushed the process and underestimated the resources needed to make a successful implementation.  This leads to a lot of frustration and finger pointing.  The Salesrep figures the company should know what to expect and the company figures the Salesrep should have explained the process in more detail.  Any company making such a decision that will affect their entire Enterprise (ERP Solution here), should have an advocate to ensure that the right questions are asked by both sides. 

I cannot imagine any solution provider would want to have an unsatisfied customer that will go out of their way to spread the bad word about their experiences.  And what customer would want a bad implementation?  This situation may have been a good fit initially, but the implementation team did not have realistic goals.  Did all levels of the organization have a say and buy-in during the selection process?

A successful implementation needs adequate planning, a fair budget, reasonable time frame, and industry expertise.  A team approach works best.  You cannot just have the Technology Department install some software on a software and client applications and expect everything to work well.  Enterprise solutions integrate the entire organization, so the entire organization must be included in the solution.  You cannot just force feed new anything on your workers.  Success comes from an integrated approach where everyone feels they can contribute.

Many times a new solution is an opportunity to document work flows inside and out of an organization.  If it has been a while since the last change or this is the first implementation the process can be enlightening.  It is also going to take some time and should be in process before making your final selection.

How would you expect a solution to work if no one knew what they were trying to fix?  Dolvin Consulting works with your organization to find your solution that addresses your challenges.  We often see cost breakdowns of 25% Software, 25% Hardware, and 50% implementation.  This is above and beyond the time needed to document your processes so that an effective Return on Investment (ROI) calculation can be estimated and benchmarks created to ensure you are on track to actually achieve the expected returns.  It takes some time to look at your business operations to determine what efficiency can be achieved or expected with a new solution.  It usually takes a fresh look, because often times you do not know what you do not know.

We cannot promise you anything.  In fact, no one can, but we do our best to leverage our industry knowledge and contacts to help connect your challenges with the right solution.  We look to see what others in your industry are doing.  We do not try to reinvent the wheel.  We work with your team to find the best solution for your budget. 

We do not know who you are so you need to contact us today to start the conversation.  We are looking forward to talking with you about your challenges.

VAI Integration: Food customer, voice picking

Connecticut based Dari Farms Ice Cream has been a major ice cream and frozen food distributor since 1950. VAI's S2K for Warehouse Management, along with voice picking technology, was the right solution to improve the warehouse efficiency that Dari Farms was looking for.

Watch the video story by clicking here.

Prior to selecting a new solution Dari Farms used many manual processes including clipboards, paper and pencils.  Add to that the harsh freezer environment and it no wonder their inventory accuracy was in the low to mid 80%.

Introduce a Voice Pick system integrated with a solid Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) solution and the company is able to focus forward to the future.  Like anything new the voice pick system met with initial resistance especially with the long term employees.  Now they cannot imagine doing their jobs without the system.  New employees do not have the overhead of system transition and pick the system up quickly.

Voice picking ensured through audio confirmation the location, product and quantity to process. The entire solution has numerous checks and balances.  Seen initially as a hurdle and time consuming, the process increased accuracy and confidence in the system.

Dari Farms had a hard time trusting what their old inventory system.  The only time they truly knew it was accurate was when they were out-of-stock.

With the new Voice Pick and Warehouse Management System (WMS) they are 99% accurate.  They cycle count and it is rare to have a single item off by more than 1-2%.

Dari Farms wanted a vendor that they could trust and that would work with them long term as they grew.  They wanted to keep moving forward and stay on the cutting edge of technology that would enable them to run their company efficiently and keep their costs down.  They chose VAI as one of those vendors they wanted to partner with.

It is fun and easy to write about this type of solution.  Today many thousands of companies are using manual processes to manage their operations.  Why, because they work.  Well, sort of.  They operate, but at what efficiency level?  They sometimes realize they have hit a glass ceiling.  Sometimes that fact has been obscured from them. 

With a tight economy there is great pressure to run lean and there is pressure to push a trimmed staff to do more with fewer resources.  When what they really need is a set of fresh eyes to look at what they are trying to do and come up with suggestions for improvement.  Many consultants can do this given enough chances.  A great consultant should be able to do this on the first attempt.  That is why they are in business, to improve your business. 

I am not saying the transition will be painless.  Look at the video from Dari Farms.  They had resistance too.  Now they cannot believe they did their operations any other way.  That is a result of partnering with an industry expert that will take the time to develop they right solution for your challenges.

I cannot promise you anything, in fact no one can, but Dolvin Consulting will work with your team to determine your true business operation challenges and develop a solution that will grow with your company.  Contact us today to see in what way we can help.

Major Canadian seafood supplier automates business…

Seacore Seafood is a full line importer, distributor and custom processor of fresh and frozen fish, seafood, and live lobster.  Located in the Toronto suburb of Woodbridge, Ontario, Canada, Seacore’s Retail division, Seafood Depot, is one of the largest seafood outlets in the world.  Seacore uses S2K for Food, along with S2K Retail Point of Sale (POS), to automate its business processes, allowing expansion.

The past included stand-alone systems that did not integrate well, tedious manual processes based on paper, latency in reporting, not having an on-time accurate inventory system.  To enable growth this company accepted the fact that they had to change.  The needs were simple enough: incorporate wholesale, retail, and Ecommerce in a single system. 

The goal, utilize a single integrated inventory system throughout their entire operation.  The benefits included accurate order entry and fulfillment, automatic route fulfillment, flexibility in use, better and easier customer service, customer self service, and quicker turnaround time to analyze financial results. 

All the information needed at your fingertips resulting in expansion and an increase in sales.

Contact us so that we can help you identify areas for improvement in your operations.  Dolvin Consulting is here to help you.

FDA Food Safety Modernization Act

In order to protect consumers new FDA legislation has been enacted to help align Manufacturers and Distributors with quality control standards similar to what the pharmaceutical industry has done.

Food Distributors and Manufacturers will be required track what products were shipped to their customers.  As will all things government, the threat of penalties lies in the background.

In order to comply with the new act those businesses distributing food products  will need to ensure their computerized systems  have the ability to record and track the lot information, including shelf life, of all products inbound and outbound from their facility.  In the case where a recall occurs this tracking information will enable the ability to know when and where the affected products where shipped.

New Enterprise Resource Planning (ERP) systems have the ability to monitor product shelf life so “old” products can be reprocessed, returned or destroyed based on their usability and will not be shipped inadvertently.  This reduces the need to process returns and keep customers happy.  Warehouse staff workloads are minimized, because the Warehouse Management System (WMS) “knows” where the products are located, which makes pulling the affected inventory a more streamlined process.

These controls enable inspectors to have a higher level of confidence when dealing with businesses affected by product recalls.  Other factors that enable an efficient processing of inventory include barcode labeling and scanning, which is integrated into the WMS system.  This in turn can minimize the product recall to only those lots affected and avoid having to collect and return all of a product, because they did not have the ability to track the individual lots.

Tracking, auditing, and reporting are key ingredients to create a defensible position in the case of government regulators.  They are also core components in establishing a trusted relationship with your customers and their customers.  No one can completely prevent a need to recall food products, but you can feel confident that when this happens you have the controls in place to react quickly. 

Contact Dolvin Consulting today to see how we can help you optimize and organize your inventory challenges in today’s fast moving world.  We are here to help.  We have strong industry partnerships that ensure you are getting the best value on your investment.

Complying with the New FDA Food Safety Act Through Warehouse Controls

New FDA Food Safety & Modernization Act legislation is geared toward bringing Distributors and Manufacturers quality control standards to the level that currently exists in the food industry.   According to the new act, Distributors and Manufacturers will be required to keep control of their inventory recalls and know what products were shipped to which clients. Failure to comply with the new standards will result in severe penalties and a complete recall of all shipments for that period.

Today's software solutions can help businesses comply with the New FDA Safety Act Ruling by using lot control to track the shelf life date of all products, in both inbound and outgoing shipments.  If a recall ever occurs, the Distributors and Manufacturers will know exactly which customers received products from that lot number. Having the proper warehouse management solution can help control operational cost while meeting and exceeding customer expectations.

Join VAI's Free Webinar to Learn More!

"How VAI S2K for Food Helps Comply with FDA Safety Regulations"

September 27, 2011 2:00pm EST
Register Now


After registering for this informative webinar, contact Dolvin Consulting to see how we can help you manange your inventory and maintain compliance.