Cycle Counting (Part 2): Tips for Choosing the Right Inventory Software to Support It

How accurate are your inventory records? It’s a question you've probably asked yourself on more than one occasion.  It is what every organization that handles inventory struggles with at one level or another, at one time or another, and coincides with automation and efficiency efforts.

Changing from Annual to Cycle counting does take some planning, but the long term benefits may well be worth the effort.  It also something that may need to be approved by your board or other regulatory body depending on your industry.  

We have found that many businesses need to do both Annual and Cycle counting until they show a consistent accurate inventory for at least one year.  After that time period the annual counting can be discontinued.  It is important that you demonstrate good accounting controls and financial reporting.

Please read the article series below to find out more.

Find Accounting Software continues their 2-part series and answers some additional questions about cycle counting.  Find Accounting Software has some great resources to help you navigate through the sea of change.  Read on for more information.

 

Tips for Choosing the Right Inventory Software to Support It

Where are you struggling?  Do you know how to get started?  What you should count and when?  What approach will you take?

At Dolvin Consulting we work with your team to find solutions that drive efficiency and automation in your operations.  Working solutions that are just-right for you and your business.  Contact us today to see how we can help.

Cycle Counting (Part 1): What Every Inventory Manager Should Know About It

Are you finding variances in your inventory counts no matter how hard you try, no matter what controls are in place?  Enter the Annual Physical Inventory and all the prep work, resource allocation, overtime, headaches and putting business on hold while you try to lock down your inventory during counting.

Are you considering cycle counting in addition to or as a replacement to an annual physical count? 

Please read the article series below to find out more.

Find Accounting Software starts their 2-part series and answers some important questions about cycle counting.  Find Accounting Software has some great resources to help you navigate through the sea of change.  Read on for more information.

 What Every Inventory Manager Should Know About It

Where are you struggling?  Do you know how to get started?  What you should count and when?  What approach will you take?

At Dolvin Consulting we work with your team to find solutions that drive efficiency and automation in your operations.  Working solutions that are just-right for you and your business.  Contact us today to see how we can help.

More Efficient Operational Processes

More efficient warehouse operations.  If only.  Is it possible?  If it were, there would likely be less labor costs relative to increased production.  Less costs and less production is clearly a down cycle in the business as is more costs and less production.  Ideally you want less costs and more production. 

Automation is the key.  But, automate what, how?

For most manufacturers and wholesale distributors the key often revolves around inventory levels, processing and handling.  Inventory tends to have the greatest Return On Investment (ROI).  Inventory management is somewhat like upgrading your kitchen in your house remodel.  The kitchen remodel generally returns the most on investment.  Other upgrades make living more comfortable, but Kitchens have one of the better paybacks.

Increased accuracy in order and pick/pack/ship processing due to warehouse layout optimization, receiving efficiencies including barcoding and scanning, automated put-aways and cycle counting are just a few examples that can contribute to more efficient operations.

Most businesses that have survived the economic fluctuations are running fairly well and have probably automated at least some and likely much of their facilities.  Warehouse Management Systems (WMS) are the key to the automation.  Unfortunately these systems are not always fully implemented.  Sometimes the implementation plan was a phased approach, but never completed.  Sometimes the organization had a loss of faith in the promised return.  The causes are many, a bad match between sales and purchasing, lack of education, or lack of funds to fully implement the solution. 

WMS systems are great, but they do have to match the business model.  Typically the greatest efficiency in WMS comes from a fully integrated solution that is part of the native Enterprise Resource Planning (ERP) solution.  However, if the ERP solution is not a good match, the WMS module will tend to exacerbate the problems.

A thorough review of business operations makes sense before purchasing or upgrading your WMS solution. 

Are there plans and budget available to outfit workers with wireless equipment, barcode scanners, printers, and other tools?  The benefits of WMS will be limited without the corresponding equipment.  Automating labor collection and reporting is another benefit of WMS systems.  A phased-in approach is a valid model as long as the implementation is completed.

How much paper is involved with the current processing of orders, receiving and counting?  How will a WMS system reduce this overhead?  Will your people be convinced?  What is the baseline and what metrics are needed to gauge the project success?  Without an electronic system how can workloads be optimized?  How much time and effort is needed to check orders? 

How much does the administrative overhead affect your profitability?

Achievable goals include year over year decreases in labor costs relative to production, order, pick and shipment rates of 99% accuracy.  To enable these accuracy levels organizations will typically need to implement bin management in their WMS system, real-time paperless receiving and put-aways, automated picking and cycle counting.  Manual systems require a significant amount of administrative overhead and paperwork which contributes to inaccuracies. These inaccuracies increase if batch, lot or serial number processing is involved. 

High accuracy rates are not the end goal, efficiency is.  High accuracy rates are what enables business to concentrate on real operational efficiency improvements. 

To get started, businesses need to conduct a business process review including evaluation of the incumbent and competitive ERP software including WMS systems, including any upgrades to their current systems.  This is only a start, but it is an important an unavoidable step in the right direction.

Buy-in at all levels in the organization is an important component to not be forgotten. 

Owners and/or management cannot just decide one day to push out a whole new way of doing business without proper training and education.  From the shop floor, warehouse, to the back office, management and top level personnel, everyone needs to understand that the change will help them to do what they do more efficiently and productively.  Set the expectations and gain consensus on the outcome. 

This is a real test for the leadership in the organization.  

How is your organization dealing with change, leadership and inventory challenges? 

Dolvin Consulting works with your team to identify and remediate the causes of inefficiency in your organization.  Contact us today to see how we can help. 

Two Signs ERP Changes are Needed

Most know that manufacturers, distributors and other midmarket organizations depend on Enterprise Resource Planning (ERP) solutions to increase productivity and deliver great customer support via an integrated information repository.  You know the analogy, the left hand knows what the right hand is doing, less errors, better performance, and faster access to business metrics.

 

There are many signs that you may have outgrown your ERP solution.  Every organization struggles at some point in time.  The struggles are equal during periods of growth and decline.  The economy is cyclical and so are business operations.

 

Below are two signs.  How many more affect you personally? 

 

Sign-One:  You increase your labor force and you do not get an equivalent increase in productivity.  The extra personnel just seem to be less productive. 

 

When your business grows it makes sense that you may need more people to interact with customers, process orders, handle procurement and finances.  It makes sense, doesn’t it?  Perhaps it does, but how many are necessary and how many are too much?  How many actually just increase overhead?  How many more do you need to manage the workforce?  Are you creating the need for an extra level of management?

 

If you double your warehouse work force, should you be able to pick, pack and ship twice the number of orders?  Should you be able to triple the number of orders?  What is the ratio of people to orders processed in your organization? 

 

If you actually ship twice the number of orders, how many customer service people does that translate to?  How many people do you need to add to the Finance department to handle billing and reporting needs?  How many more supervisors and managers are needed to address the increase in workforce. 

 

It might make sense to take a look at how your business is physically organized before you add people.  Not that you do not need more people, the real question is how many and where? 

 

For example, would arranging your inventory locations in a more efficient way for stocking and picking make more sense?  Would conveyors or barcoding or other form of automation increase productivity enough so that you can minimize hiring? 

 

In contrast suppose business has shrunk, how many roles can be consolidated?  How can you empower the remaining personnel with the right tools so that their productivity increases and you can maintain business operations and then prepare for the next growth cycle?

 

How efficient is the software you use to process information?  How many separate systems do you use?  How many steps does it take to enter an order?  How much time does it take?

 

 

Sign-Two:  You increase your inventory level and still have troubles meeting customer demand.

 

How much is too much inventory?  What are your customer’s expectations?  What does on-time delivery mean?  What delivery does your competition actually deliver?  Is there anything real about Just-In-Time (JIT) inventory?  Who do you know personally that can make that type of system work?

 

Manufacturers have lead-times for the products they produce.  Distributors need systems that build that lead time into their procurement process so that customer demand and sales history can be balanced to ensure that you have enough inventory on hand to meet expected levels with a reasonable amount of safety stock.  In other words, you can meet customer demand without overstocking your warehouse.

 

A purchase “deal” is not a deal if that inventory sits in your warehouse too long.  A special price so one business can basically dump their inventory is not a deal for anyone, if that inventory sits and takes up space.  Physical space, overhead, taxes all add up and can easily out-cost any purchase savings.  A deal is not a deal unless you have a customer ready and willing (and has the monetary resources) to buy the product.

 

Can you find your inventory?  Do you purchase more, because you cannot find what you thought you had?  How accurate is your current system?  What tools and processes does your current system have that helps to keep your inventory accurate?  How often do you have to count your inventory to know what you have on hand?  Is the only time you feel confident on your inventory levels is immediately after the counts have been posted?

 

There are numerous indicators of inventory inefficiency and tools and software to address the challenges and problems.  Most businesses struggle in determining just where the bottleneck is occurring.  Otherwise, they would have fixed it already.  The problem often lies deeper than the observable symptoms.  The alternative is equally pressing.  A business knows where the problem is, but lacks the resources to properly address the problem. 

 

Either way short term patches and fixes designed to address the problem will inevitably make the situation worse when a decision is made to make these fixes permanent without addressing the underlying issues.  Until you get to and address the heart of the problem, the problems will repeat.

 

 

So many questions and too few answers.

 

 

These two signs are just the tip of the iceberg.  What keeps you up at night?  You have questions and we have answers.  You may agree with some of these statements and disagree with others.  Why not share those thoughts here for your fellow readers.  I would love to hear what you think.

 

Dolvin Consulting works with industry experts to help your business identify and remediate the obstacles that are holding you back today.  Contact us to see how we can help.  Only you know how great the pain is and the impact it has on your operations.  We understand and can help.

 

Inventory Management Visibility

In order to make better decisions management needs good visibility into their inventory.  Financial, operational and purchasing decisions are better when based on accurate and timely information.  Elimination of manual processing increases the timeliness and reporting capabilities which overall increases customer service levels.

 

Customer service matters. 

 

What processes are being implemented at your organization to increase your customer’s satisfaction?  What improvements are your competitors making?

 

The right Enterprise Resource Planning (ERP) solution provides the framework for the different departmental functions to be integrated into one weave.  What makes “it” the right ERP solution?  There are many solutions to choose from today. 

 

It becomes the right solution when culture meats function. 

 

Every organization has a culture, a way of doing business.  Every ERP solution has a process which maps transaction and reporting functions to organization challenge.  The key is finding a solution that addresses the core needs while providing a growth path to future challenges. 

 

When manufacturers deal with inventory they typically will take advantage of a Manufacturing Resource Planning (MRP) module to manage how much inventory they have in their warehouses at any given time.  Real-time or near real-time reporting is optimal, and as a result better suggest how much of any particular inventory item to manufacture or purchase.

 

A consolidated view of historical usage allows both manufacturers and distributors to accurately project and plan for future need and create the optimal production or buying levels.  This accuracy allows the organization to react faster to changes in demand.

 

Companies need the visibility that ERP/MRP solutions provide. 

 

Monitoring and tracking inventory movement on the shop floor as well as in the warehouse allows organizations to plan better and minimize out of stock situations which results in better customer service and ultimately savings through automation and increased efficiencies.

 

Customer service should be a critical component for any organization. 

 

Take your own shopping or purchasing experience in mind.  How often do you like hearing “we can back order that for you” when you try to order supplies.  How competitive can your salesreps be if they have no clear idea of what is available when they are in front of your customers?

 

Greater inventory accuracy increases speed and efficiency.  Efficiency that purchasing, sales and customer service as well as production departments all take advantage of to perform their functions.  Management has the information they need to make decisions with greater confidence.

 

One of the bigger challenges is implementing the changes and new solutions needed with ERP solutions.   It is one thing to write or talk about solutions, it is quite another to commit to the changes.  Inevitably a lot of the effort should be made up front to document the processes currently being used so they can be addressed and mapped to a potential new solution. 

 

This is where the culture piece fits in.  How many steps does it take to perform a function?  A solution could be very capable, but take too much effort to achieve the advertised results.  This is also not to say that just because there are steps involved that they should be avoided.  Look for ways to automate the collection of information.  Even though there may be some additional steps involved compared to what you do now, the accuracy and benefits are usually worth the effort.

 

Making a change to an ERP solution is not comparable to picking box software of a shelf. 

 

It takes a lot of planning and analysis as well as fiscal commitment to implement an ERP solution.  Most people understand the potential benefits of increased inventory visibility and the efficiency of newer ERP solutions.  Many are concerned about the likelihood that they will have to change their operations or will have to make extensive modifications.  Neither is a good choice.  Unless there are unique requirements, you should be looking for a flexible solution that only needs minor modifications.

 

Look for solutions that provide consolidated dashboard views that give you drill-down to details.  Savings come in many forms, but typically involve automation of one type or another and the elimination of manual report processes.  Paper intensive tasks are other areas where organizations can achieve significant savings.  Planning decisions are more effective with accurate information. 

 

Make sure your system collects the right information.

 

Your competitive advantage starts with a comprehensive ERP solution that integrates your Enterprise.  Finding the right solution may take some effort, but in the long run, if you select the right solution you will wonder why you took so long to make the decision.

 

Let Dolvin Consulting help you find the right solution.  Contact us today to see how we can help you find the right solution for your challenges.

 

 

Pace yourself with ERP selection and implementation

Most of us know the story of the hare and tortoise.  The story concerns a Hare who ridicules a slow-moving Tortoise and challenges the tortoise to a race.  The hare soon leaves the tortoise behind and, confident of winning, takes a nap midway through the course.  When the Hare awakes however, he finds that his competitor, crawling slowly but steadily, has arrived before him. 

 

The account of a race between unequal partners in which ingenuity and trickery are employed to overcome a stronger opponent.  The over ambitious and overconfident, start and stop versus the steady consistent and persistent effort.  Haste makes waste and the race is not to the swift.  There are a number of lessons in this story which apply to life in general as well as selecting and implementing an Enterprise Resource Planning (ERP) solution.

 

Thousands of businesses arrive at a similar crossroads every year.  As it turns out timing really does play an important role.  If you replace your existing solution too early, you may end up with more software than you need.  If you wait too long, you could end up struggling with inefficient business processes that damage your business performance and prospects for future profitability and growth.

 

At what point do the costs of maintaining your existing system outweigh the benefits of keeping it in place?  When is the right time to make the move?  All businesses at one point or another will struggle with the same issues.  The impact varies, but the challenges are similar.

Has your workforce growth outpaced your infrastructure?  Have you added locations and mobile workers?  Is your information contained in multiple systems?  Do you have separate customer relationship management (CRM) system, customer service processing, inventory control, warehouse management (WMS)?  Are you overburdened by spreadsheet sprawl? 

 

 

Is there a single dashboard where all information is summarized with drill-down to the details?  How long does it take to get consolidated financial information?

 

What is the cost of inefficiency to your organization?

 

How well are your customers served?  Do they get different information from different sources?  Are your deliveries accurate?  How much better does your competition reach their customers (or your customers)?  How much guess work goes into forecasting?  Customers expect you to have stock levels, order status and delivery tracking at any time they contact you and they expect it to be accurate.  Sales people need to have all the latest information on hand even when they’re out on the road when they are in front of customers and prospects.

 

Does it take too long, how long does it take, to share information and is it correct?

 

Where actually is that inventory?  Did you reorder what you already have, because you could not find it?  Can your customers self serve their information needs?  How much work goes into filtering and analyzing your information into meaningful sales campaigns?

 

How many systems are you using to deliver information?

 

Have you reached the limits of your existing solution(s)?  Have those limits limited your ability to serve your customers and grow?  Are you adding more people to your workforce and still are not producing more?  Do your struggles drive the need to add more and more disconnected systems?  Are your people resourceful and just want to get their jobs done individually instead of raising the productivity of your entire organization?

 

Do you dream of adding more products or services, but dread the overhead of implementation in your current solution?  Not if, but how big are the challenges to adapting to new business trends?  How much time and energy go into the technology of your business versus working on your business?  Do you have budget for technology or are you fixing and patching? 

 

What Return on Investment (ROI) can you expect and how long will it take to get there, if you do invest in a new solution?  How will you bridge the gap from where you are now and your vision of the future?

 

Well defined goals and a trusted advisor can help to pave the way.  Where do you want to be in the future and when?  With an advisor you can document and map processes and match them to the right ERP solution.  While there may not be an exact match, a good fit between challenge and resource will help to define your processes and roadmap to solution implementation. 

 

Compare the starting and stopping, heading in wrong directions, not getting key functions working in a timely manner causing cost overruns and failed implementations with what a strong and steady tortoise-like approach can bring. 

 

Are you a rabbit or tortoise? 

 

Which yields better results? 

 

What happens if you do nothing?

 

Dolvin Consulting works with your team to define a roadmap and develop a clearly defined project plan for the future.  We work with industry experts to match challenge with solution.  We cannot guarantee you will fix all of your problems, but we do know that an organization that selects a solution that integrates the entire business process tends to yield great returns.  Why not contact us today to see how we can help. 

 

Fix and Found

What happens when you find an operational deficiency, you investigate options, implement changes and then find that your challenges were bigger than you originally thought?

 

One day long ago your organization struggled with manual processing and systems that did not work well together.  A hodge-podge of separate systems, inefficiencies, duplication of effort and accuracy issues. 

 

Your struggles led you on a path of discovery.  You took a serious look at yourself to see what your business does to generate revenue, how it operates and what changes could be made to drive new efficiencies and profitability.  After a period of elimination you made a selection of a new Enterprise Resource Planning (ERP) solution to address and fix the challenges.

 

The changes worked their magic and after all the pain of transition everything seemed to work well and then your company started to grow even more.  The old systems were, in fact, a constraint on growth.

 

What you found was that your focus was on the greatest pain in your operations.  Good place to start.  Fix the pain and move on.  What happens when your remove one bottleneck? 

 

Growth.

 

Great, but what about your ERP solution?  What about the next bottleneck?

 

Was the solution you took so much time to choose able to address this new growth?  It was designed to address your biggest challenge.  Your business grew and along the way you discovered that your new solution allowed you to fix and address other challenges that you did not realize were actually impacting business. 

 

Your business grew even more.

 

Really great, but what about your ERP solution?

 

A great, not just good, partnership with your ERP solution provider is a key ingredient in success.  A smart solution provider will take the time to ensure that your solution will not only fix your current issues, but will also tap their experience to know where you next struggle threshold will likely occur and ensure the solution provided will grow with your growth. 

 

A really good find is when the solution that you selected has the ability to address new challenges that will inevitably show up and grow with you. 

 

The solution enabled you to grow and grew with you.

 

You have a mutually beneficial relationship with your ERP solution provider.  Both of your futures depend on your success.  If they do not have that commitment then what investment are you really making?

 

Dolvin Consulting works with industry experts to help you identify your current and future challenges and then helps you select the right solution.  The process starts with a self assessment and evaluation of how you are currently operating.  You then need to picture what life would be like with a new solution.  Your business needs to know where you are today and where you want to end up.  It is how we roadmap a solution for the future.  Contact us today to start the conversation.  We care and are here to help.   Let us show you the roadmap to growth.

 

Warehouse Management System Best Practices

To ensure the accuracy of information processed at an organization Warehouse Management Solutions (WMS) need to include both hardware and software.  Newer systems are used to manage product services, such as shipping, receiving, inventory management, product or service layout, staff, bins, and purchasing.

 

Having the right solution in place is an integral component to organizing and managing the supply chain and is crucial to the success of overall business.  Having the appropriate software simplifies inventory processing through automation, thus ensuring tight control and lot tracking at all levels of warehouse management that meets industry-specific regulations and institutional requirements.

 

Common mistakes can make it challenging to maintain a successful warehouse operation even when WMS tools are being used.  Common problems include failure to put in place an efficient warehouse layout best suited to the products being handled, lack of knowledge of the inventory on hand, and inadequate preparation and training of personnel.

 

Having a logical warehouse layout is paramount to the success of any warehouse solution.  Location and paths should be organized to facilitate efficient routes.  The most popular and fastest moving items should be easily located and accessed.  The location of all products should be clearly defined and not scattered throughout the facility.  Trouble in finding products can cause delays and errors in product shipment.

 

Creating a logical naming and sequencing plan along with barcodes for efficient mechanical reading is a foundational steps in organizing a warehouse.  Special attention needs to be taken in the planning phase to ensure products are located where they can be picked efficiently.  It does not mean you have to rearrange your entire warehouse, but small incremental changes add to a cumulative benefit.

 

Accurate perpetual inventory and knowledgeable staff will help in this planning stage.  For example, by placing higher moving products near picking lanes that are close to shipping areas and placing bulk areas in a location to facilitate bin replenishment.   

 

A good WMS will show how well a system is performing and product movement.

 

WMS challenges increase when there are date sensitive products such as found in food or pharma industries.  Compliance regulations make it critical to keep accurate records of date tracking, handling and product movement.  No customer wants to receive an outdated or expired product.

 

Staff ultimately plays one of the most important roles in increasing operational efficiency.  Providing training is critical, but so is listening to the people that actually walk or ride the floors.  Their input is invaluable in indentifying any unique requirements.  Enlisting the help of a trusted advisor will help to identify your organizations strengths and weaknesses. 

 

Organizing and managing inventory begins with a detailed look at what you are doing and why you are doing and how you utilize your available resources.  A good match between your organization and a warehouse management system is more than picking up a software box at your local office supply store. 

 

The WMS system should integrate well with your Enterprise Resource Planning (ERP) system.  Seamless passing of information between systems is a critical component and this integration.  Consider also the other components of your operations such as bar code scanners, radio frequency equipment, data collection equipment and where or what this equipment connects to or monitors.

 

There are a lot of components to connect and integrate in any operation.  The key is building a solid foundation to build upon.  A flexible ERP system with expansion modules that include WMS and other key components that match your departmental and functional roles is a great place to start.  But what happens if you already have a system in place and the complexity of adding more components is too great? 

 

This is where finding and selecting a trusted advisor will help.  A fresh set of eyes to look at your operations in a way no insider can see is helpful.  Accepting new points of view is the hard part. 

 

At Dolvin Consulting we work with industry experts to give you new perspectives on business-as-usual.  Contact us today to see how we can help. 

 

What ways do you evaluate trusted advisors and new solutions?  Please share your experiences with our readers.

Warehouse Management

There is a difference between inventory control and a Warehouse Management System (WMS).  Inventory systems keep track of product information, locations, and quantities.  WMS systems keep track of the movement of inventory.  An inclusive Enterprise Resource Planning (ERP) solution incorporates both. 

 

ERP is designed to integrate the entire organization.   That is where the drive to efficiency is able to achieve its Return on Investment (ROI).  It is the way the right hand knows what the left hand is doing.  The brain of the system like the brain in your body is right in the middle, top front.  It collects and coordinates the information it receives from its various sources, analyzes that information and provides feedback. 

 

Warehouse management systems help in managing the supply chain and tracking the movement of inventory from receipt, put-away, movement and replenishment, to pick pack and ship operations and cycle and inventory counting.  Technology is the backbone that, when implemented with the right strategy, delivers the efficiency needed to compete and ultimately deliver better customer satisfaction.

 

Monitoring warehouse activity in real-time, minimizing entry errors through automation, collecting data to measure efficiency of operations and labor are important aspects of any WMS system.

 

In order to make intelligent decisions, management needs access to as real-time information as possible.  Too much happens too quickly to have to wait hours, days or weeks to get critical information and decipher that information.  ERP systems when properly implemented are able to furnish this information in a format that makes sense.  Managers need to know what their employees are doing, where there are bottlenecks and how to address those issues.

 

Some of the benefits of WMS systems include (in real-time):

• Verifying receipts against purchase orders at the time of receipt. 
• Verifying picked items and quantities against customer orders before shipment.
• Keeping track of batches, lots and serial numbers. 
• Bar-coded inventory. 
• Tracking inventory by the piece, case or pallet. 
• Measuring employee productivity.
• Optimizing picking for single or multiple orders.
• Integration with common carrier systems to capture box information and tracking numbers.
• Customer returns tracking.
• Work-in-progress tracking.
• Production posting.
• Replenishment activities.
• Count-back verification.

WMS information can be used to properly organize the physical locations and pick order to increase employee productivity and accuracy.

 

More efficiency opportunities. 

 

More accuracy opportunities.

 

At first glance it might seem that implementing a WMS system would be too complicated for your workforce and if it could be implemented, the processing would slow down.  Do not underestimate your workforce when you enable them with the proper tools to get their jobs done.

 

For example, count back systems generate confidence in picking operations, because workers learn that they can trust the system to identify where the inventory is located and that the right quantities exist.  They learn the system recommends the right product placement so the do not have to waste time going back and forth to pick orders.  Compare that with an order that was picked and shipped incorrectly.  What happens to customer confidence in your operations?  How will management look at employee productivity?  What costs are incurred by the customer service and finance department, because they have to take care of upset or disappointed customers?  How much time does it take away from their other tasks? How much time does it take to create the return authorization, process the credit, create a new priority replacement order and absorb the associated and expedited return and replacement shipping costs?

 

Greater, more accurate throughput, inventory turns and employee productivity.

 

How is your organization taking advantage of WMS?  What efficiencies did you discover that you did not realize that you would have before implementing your WMS solution?  What solution works for your environment?   Is it a separate system or a fully integrated solution?

 

Contact us today to share your knowledge.  Your fellow readers would like to know.  We are here to help.  Dolvin Consulting works with industry leaders to help you help your organization with knowledge and industry resources.

 

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.