Trends in Distribution Management

An overview interview of distribution management software trends in Enterprise Resource Planning (ERP) solutions.  Five key areas that are a driving concern of any wholesale distributor, distributor or manufacturer are highlighted in this five minute video.

 

SupplyChainBrain Interview with Joe Scioscia

 

Interview highlights:

1.       Utilization of Sales Force Tools

o   More information is needed besides just contact management to maximize every sale at the point of customer contact.

o   Product information at the point of contact

o   Order status to provide customer feedback.

o   Customer account information readily available.

 

2.       Analytics

o   Enterprise Resource Planning (ERP) systems can generate massive amounts of data. 

o   It can be a challenge to spot trends, anomalies or business issues within that data.

o   Present data in a more easily digestible format with charts, graphs and flagging data.

o   Creation of Key Performance Indicators (KPI) to make better and faster business decisions.

 

3.       Cloud Computing

o   Established already in some industries like payroll and Contact Relationship Management (CRM) and gaining traction in core distribution solutions.

o   Generally a better fit for companies with diverse locations without a need for a heavy Information Technology (IT) infrastructure.

o   Reduced IT management infrastructure.

 

4.       Warehouse Management Solutions (WMS)

o   Managing their biggest asset, Inventory.

o   Receiving, picking, shipping, and physical inventory benefits.

o   Cut costs, increase productivity and improve customer satisfaction.

o   Locate products more effectively, pick and ship items more rapidly, reduce errors, improve accuracy.

o   Benefits of automation.

 

5.       Top business requirements

o   Grow business.

o   Increase sales.

o   Reduce costs.

o   Sales force automation to increase effectiveness and maximize sales.

o   Warehouse management to reduce costs and increase accuracy and productivity.

o   Forecasting and purchasing applications to manage inventory levels to have the right products at the right time to satisfy their customers.

The consensus in the interview is not news for those involved in the distribution and supply chain.  How can these organizations optimize their inventory levels in order to provide great customer service and fulfill customer demand in a timely and responsive manner?

 

These challenges have not changed over time.  What has changed is the way processes can be automated to increase productivity and reduce costs.  New tools provide opportunities if implemented correctly with an ERP solution to fully integrate the organization. 

 

Whether the tools are in the cloud or on premise, what matters is having a system that fits the culture of the business and is actually utilized.  Typically a few modules at first and then more and more are implemented. 

 

The goal should be customer fulfillment and satisfaction. 

 

You get there by utilizing the resources available in the solution you have or are implementing.   That might include analytics or warehouse management and include automation tools like bar coding and scanning, count back inventory picking, shipment verification or physical changes like conveyors and robotics. 

 

Each organization has its needs and budget to address those needs.  What any building needs is a strong foundation that can support the future needs and growth of an organization. 

 

How is your organization utilizing its ERP solution to drive efficiency?  We would like to know.  Please share your thoughts here.

 

Dolvin Consulting works with manufacturers, distributors and specialty retailers to help them streamline their operations, reduce costs and increase operational efficiencies.  Contact us today to see how we can help you look at your organization with a fresh set of eyes.  Many opportunities for improvement are right in front of you and collectively they can be combined to achieve big savings.

 

Mergers & Acquisitions: What Happens When the Company Whose HR Software You Just Purchased Gets Acquired?

Mergers & Acquisitions: What Happens When the Company Whose HR Software You Just Purchased Gets Acquired?

This scenario is quite common in not only Human Resources (HR), but also in Enterprise Resource Planning (ERP) solutions as well.  Is the Merger and Acquisition (M&A) just a ploy to grab a bigger market share or is it really a chance to broaden a portfolio of products. 

Here is the question: Is the new entity larger than the sum of the parts or is it just a bigger jigsaw puzzle?

There are many issues that come up.  Will my company still receive the support it needs?  How will I get support?  Do I now have a new contacts that have to learn about me and my business?  What happens when the contract I have expires and it is time to renew?  What will I be forced to change and when?

This article from the Technology Evaluation Center (TEC) is worth the five minute investment to read.  Then look at your software supplier and ask them what is on the horizon?  Are they fully committed to your success and invest/re-invest in their product?  No one has a crystal ball that actually works, but you may want to ask your supplier what their future plans are and do they plan to acquire or be acquired?

Vormittag Associates (VAI) has and continues to make a commitment to their customers and partners that they will remain independent.  In business since 1978 VAI has made their mark by being a trusted resource. 

Dolvin works with VAI and IBM to ensure there is a good fit between your challenges and the solutions available.  We look forward to helping you meet your challenges today and tomorrow. 

Contact us for more information by clicking here.

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

Controller

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 http://www.optimum-solutions.com/ for more information.

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.

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

CFO & VP

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.