Quality and Shortcuts

When considering a purchase or upgrade of an Enterprise Resource Planning (ERP) solution for your organization it is easy to want to handle the entire project in-house.  After all Google is such a powerful tool today, who needs a trusted advisor? 

 

How hard could it be? 

 

Is it something like going to the local computer and selecting a copy of the latest what-ever.  Just pop the disk in and, no wait that may take too long, let us download a copy, get it right away, click on the file, install the program by clicking “Ok” a bunch of times, taking the defaults and presto we are magically up-and-running.

 

When, where or by whom did someone give you that impression?

Some Cloud based solution providers may give you that impression.  Sign up now for a free 30 day trial, answer a few questions, upload or key in some information and you are off and running.  This may work for one out of a thousand organizations that have nothing out of the ordinary.  What happens to your information at the end of the trial?  You know after you realize it will take several months to just get your information onboard, people trained and customers back that lost patience with your grand efforts. 

 

Did this solution provider supply you with an experienced project manager to help with the transition?

There is more to selecting an ERP solution than typing a few words into an Internet search engine.  How do you know which words to key?  How do you filter the millions of potential returns on your query?  Just limiting your research to the first two pages of results is great news for the folks making a living promoting that service, but are you really getting the answers you need?

 

Are you ordinary?

Chances are you have many common traits with others in your industry and proper research will help you narrow the search, but that is different than simply click-and-go.  Shortcuts are different than best practices.  Shortcuts can help you save time, but do not eliminate the need to perform the steps needed to first determine what your challenges are and secondly determine if there is a good fit.

 

Time and effort must be invested in selecting a solution that will integrate your entire organization. 

Who will be affected, hopefully everyone, but that means you need to understand how everyone will use and interact with the system.  What are they expected to input and what output do they require? 

There is a difference between quality and price.  There are many good solutions, but they have to fit in your budget and just because they fit your budget, that does not mean they are quality products.  More expensive does not mean better.  Good fit, good features, reasonable budget is the goal. Follow that with a vested partner, including software, hardware, and advisor.  Does the solution have the ability to grow and address your needs as they evolve. 

 

Has this provider helped others in the same industry or others with similar challenges?

 

When you begin to look at your operations, you can identify costs associated with the tasks your people perform and the resources they use.  Resources used in manufacturing, resources used in distribution, and resources used in labor and plant overhead.  These costs lay the foundation for a Return on Investment (ROI) analysis.

 

No matter how good a solution is, if you do not expect a complete return within in one to two years after implementation, then this should be a red flag.  It does not mean it is not a good solution, but there has to be another driving factor.  Perhaps that might be your organization wants to define and take a leading role in your industry sector.  There are valid reasons, but you should know and acknowledge that before you make the investment.

 

There is a lot to know and time restraints to balance. 

 

You still have to get your other work done.  At some point you will need to invest your personal time and energy, but a lot of the leg work can be handled by a trusted advisor.  It is not just for the well financed.  The time and money saved by utilizing an outside resource that will use a fresh set of eyes to look at what you do and how you do it and compare that to others pays for itself.  Realistically you do need to do your due diligence in an advisor selection, but will you be able to live with yourself if you do not find someone to help? 

 

It may help to think of your advisor like a wedding planner.  They have the contacts and experience to ask you the right questions and manage the project.  It will not eliminate all of the frustration, but it will give you peace of mind.

Let Dolvin Consulting help you with the trench work.  We can help.  We leverage our industry experience and contacts to save you time and energy.  We cannot do everything, but what we will do will make the process easier.  Contact us today to see how we can help.  That is why we are here.

Warehouse operations run more efficiently when processes are fully automated and integrated

Cheryl Nylund remarked, “VAI’s S2K suite has delivered on its promise to streamline our operations and provide maximum visibility of key business operations.  For Randa, S2K’s automation capabilities have provided the foundation on which to fuel our continued growth and success.”

Simplifying the picking and inventory management process was the chief motivation. 

 

Enterprise Resource Planning (ERP) solutions play an integral role in integrating and streamlining computer operations.  The melding of workflow, labor and physical resources.

 

Read the full story by clicking this link.

Randa Luggage wanted to work with a local software developer who had the experience to help them implement a total WMS solution.

 

Their chief concerns are fairly typical of wholesale distributors, they wanted:

·         The ability to view the real-time product availability.
·         Improve order accuracy.
·         Streamline operations.
·         Reduce labor costs.
·         Increase shipping speeds.
·         Expedite billing procedures.

Results: The company now has total, multi-dimensional inventory visibility.

 

Randa was confident that VAI understood the company’s concerns.  This is easily one of the most important points and is critical for any successful ERP selection and implementation.  You need the right partner.  The word "partner" is correct.  You are not buying a boxed copy of software off the shelf.  Enterprise Solutions require good matching of challenge and solution, careful planning, training, implementation, and testing. 

 

A quick sale customer – vendor relationship will not work.

 

In utilizing VAI’s WMS and ERP solutions, Randa has unlocked the inventory information it needed to service its client base effectively.

 

Customer service. 

 

On the part of the ERP solution provider and on the part of this organization ability to service their customers.  A chain is only as strong as its weakest link.  The relationship between this organization and VAI provides a backbone of support that allows Randa to concentrate on their customer’s needs by utilizing their new ERP solution.

 

Dolvin Consulting has partnered with VAI and IBM to deliver good fit ERP solutions to Manufacturers, Distributors, and Specialty Retailers who primarily struggle with warehouse and inventory control issues and are frustrated by the constant flux of technology.  We are your partner guide to helping you understanding your challenges and available solutions.  Start today by contacting us for an initial consultation.  There is no-charge for the call and nothing to lose.

Has your ERP Solution Become Outdated?

The economy has not been great all around.  Organizations have run through their cost cutting measures.  Capital expenditures have been postponed.  Upgrades delayed.  Band-Aids applied and time has passed, like water under the bridge. 
 
What happened to those Technology initiatives?  You remember the ones that were going to put you ahead of your competition.  Your employees were going to be so productive with all the gadgets and tools available.
 

You had to delay your investments, but what about the increased maintenance costs and energy usage?  New equipment has warranties and typically run more efficiently than their predecessors.  Do not forget the time your staff has invested in patching and updating the older equipment to try and keep it current.  How long do your employees wait between screens to process and order or other function.  If you enabled each of your employees to save 10 minutes a day by having a more efficient infrastructure times the number of employees times 50 working weeks a year, what would that number be?  How vulnerable is your older equipment to virus, malware, and other Internet threats?

 

What about the Enterprise Resource Planning (ERP) modules that could replace the multiple separate systems you are running now.  Would an integrated system, fully integrated, be beneficial?  What impact would having all your information in one place, easily accessible, and useable have on your management and business operations?  How difficult is it to share information across your enterprise?  If you just yelling across the office, that does not count.  How many times does the same information have to be keyed into how many different systems so that you can create an outdated report?

 

How many people do you have on your staff just to support all of the systems you use now?  No worries about the impact to operations if one of them gets hit by a bus on the way to work tomorrow?  Everyone is cross trained, right?  Hey, how was that last audit?

 

Are you billing the right amount?  Are changes recorded properly?  How about your inventory levels?  How accurate was your last physical inventory?  If you were less than 99% accurate, there is room for improvement and potential for monetary gains.  Does your system(s) have the ability to track and measure, log transactions with minimal effort?  How will you ever figure out what happened to your inventory without a system designed to just that?

 

What processing could be automated without breaking your budget?  Does management have dashboards with drill down capability?  Get a look at the big picture and detail about the exceptions.  They might be wasting a lot of time culling through long reports to find the few areas that are most in need of attention.

 

Manufacturers typically have three major categories of resources that must be constantly monitored.  Employees or labor, material or inventory, and facility or work centers.  There are of course many costs and overhead figures to tally, but these categories drive your production capacity.  How well does your system manage and advise you about your capacity to meet your customer demand?

 

Finance department integration is also a key component.  ERP systems integrate General Ledger (GL) transactions, like mortar between the bricks.  Your accounting people cannot afford to wait to see what the impact of purchasing or inventory or anything else has on the company’s financial statement.  Not sure if this is true?  Go ask your CFO, CEO or other corner office person.  Keeping an eye on the company’s financial health is as critical a function as any.  Who owes you the most money, for the greatest amount of time? 

 

How long do your customers wait to get order confirmations?  Do they have the ability to self serve some or all of their own needs?  In today’s world it is an expectation that as a customer you can access your account, check balances, reprint invoices, check order status and do a host of other tasks on your own schedule that often runs past 5:00pm.  Do your customer service people have observability over inventory levels so they can keep your customers in the loop about on-time or late shipments?

 

Are you doing anything manually?  The cost to fix and automate those processes usually have a good Return on Investment (ROI).   Are you really saving anything by not replacing your outdated system?

 

What does the future hold?  Where do you expect to be in the next 3-5 years?  What will be you biggest threat, biggest accomplishment?  Will you be involved in any merger or acquisition (M&A) activity?

 

Let Dolvin Consulting be a fresh set of eyes and ears for your business.  We work with and help manufacturers, distributors and specialty retailers to help them streamline their operations with ERP solutions so they reduce costs, and become more profitable.   Those companies typically struggle with warehouse and inventory control issues.  They are also somewhat perplexed by the constant flux in technology. 

 

Partner with us and Contact us today to find out how we can help you compete better.

A Business Transforming Decision

Robert Wist, CEO of Wist, summed it up best, “For Wist, the payoff has been substantial. In just 2 years, we’ve recouped the packages implementation costs and S2K has provided a 10% reduction in employee overhead, while gross margins have increased by about 4%-- both considerable benefits for our company.”

Quite simply, the industry specific ERP package that Wist was utilizing had become obsolete and forced the company to make an important, business transforming decision.  Either Wist could convert to an updated version of a package that lacked the features and flexibility that the growing distributor needed, or it could seek out a new solution.

 

Read the full story by clicking this link.

 

The company had grown significantly since implementing its original distribution package and what had once provided ample functionality, now ate up valuable employee time for simple data entry tasks.

 

Wist no longer runs an opinion-based purchasing system. S2K takes the guesswork out of the equation with a user-friendly, data rich suggested purchasing module, which keeps inventory levels lean, but still ample to meet customer demands.

 

VAI’s S2K for Distribution has helped Wist reduce inventory levels, streamline operations and decrease overhead cost.

 

“The Warehouse saw a dramatic decrease in labor,” said Mike Gallagher, Project Director, VAI. “With VAI’s advanced warehouse automation features including picking and order verification, Wist has replaced its manual processes with an efficient system that not only saves time, but also saves money.”

 

As Wist continues to grow, S2K for Distribution is flexible enough to grow with the company.

 

The right partner really makes a difference.  Wist evaluated more than one solution.  VAI’s teamwork approach and attention to detail contributed to the success that Wist now enjoys.  Expertise and Industry knowledge are other key components the contributed to their success.  True enterprise solutions delivered affordably.  Their old industry specific system suffered from a lack of flexibility and the ability to implement process improvements.

 

This is a great example of teamwork.  Take the time to know each other, define the challenges and match that to an affordable solution.  Dolvin Consulting works with VAI and IBM to deliver solutions to businesses.  Contact us today to see how we are different.  No sales pitch, no pressure, just question and answer to find out what works and what does not.  I know what you are thinking.  This success story is an exception and not the rule.  My business is different.  We will not know that until we talk.  Maybe you are right and maybe there is reason for hope.

People Management and Inventory Control Systems

I recently read about someone trying to figure out the optimal placement of supervisors.  The writer was sincere in his approach to find a solution.  There were also some sincere response comments stating that a supervisor and their desk should be on the shop floor.  Then they could interact with the workers.  Then he talked about the developmental stage of the employees.  Do they comprehend the job and what was expected of them?  How about training?  Then there was an analogy to solidify his point or was it points?

Of course there are optimal places for all employees, supervisors, workers, management, and ownership for that matter.  The response comments made me think.  In this day and age when driving efficiencies in operations are one of the most critical aspects to reduce costs and remain profitable, why would any company not invest in proper training for their workers?  Do the employees comprehend their job and expectations?  What type of Human Resources department do they have?  Are they in a remote area where there really is no selection of people?  I though unemployment was still high. 

 

What struck me as interesting was no reference to the systems the people were using.  The only context we have is the forum of warehouse and inventory management. 

 

Now these were just comments, but it made me think about a recent conversation.  I talked with an organization that needed some customization of their system, because the workers refused to process orders in their system before shipping.  The organization I speak of does invest in their systems and training.  They treat their workers fairly.  They are not in a remote area.  Other talent is available.

 

We were able to put together a plan that would address their needs, but not until we both commented that there seems to be a disconnect between who signs the paycheck and who cashes them.  The program changes are not really necessary if the people would use the system they were trained on.

 

Why do companies invest in systems then not use them? 

 

There may be an optimal place for a supervisor, but we would need to know a lot more about the facility before any reasonable suggestion can be made.  What should be included in their discussion was the type of systems they are using to manage their inventory, their workers, their productivity, and their operations. 

 

In today’s world you cannot separate the people and the systems they use to do their job. 

 

If the company is of any size, then they need systems to manage their inventory and work flow.  Management needs dashboards with drill-down capability to get high level snapshots and detailed inquires.  You need inventory control to know what goes where and how much, when to reorder, when to supply production, address customer and manufacturing demand.  You need Warehouse Management Systems (WMS) to manage and track the movement of inventory.  These systems can be set up to capture the detail without adding manpower and result in a database that can be mined for performance metrics to find areas that can be improved.

 

Supervisors and their placement are critical, but so are the systems they use.

Dolvin Consulting helps Manufacturers, Distributors and Specialty Retailers implement their systems to drive efficiencies in their operations.  We work with your team to document your system and find areas for improvement that can be implemented when your budget permits.  No false promises, just incremental improvements that cut costs and increase profits.  Contact us today, we are here to help.

Selecting ERP Solutions Should be About Value, not Price

“You get what you pay for”.  This statement and countless variations exist, because so many people have learned the value of a free or low cost solution is often less and will end up costing more (Total Cost of Ownership- TCO) than if they had done their research more thoroughly and invested based on value rather than price.

A few years ago I was working with a prospect who was considering a new system.  We were discussing the implementation to their current system.  Knowing about their past systems, conversions and satisfaction helps to manage expectations and set reasonable budget ranges for a new project.  Knowing the process also alerts us to potential pitfalls that need to be avoided or addressed in the future.

The prospect related that they had a horrible time with the conversion.  They managed the process in-house, it took too much time and money and the process strained everyone with the extra workload.  I related that is not an uncommon story. 

We then discussed budget and the three major categories where monies would need to be invested.  Software, Hardware, and Implementation.  Of course there are subsets to the categories, but these cover the major areas. 

He agreed that the software numbers were reasonable, but lamented a bit, because after all it was already written and he just needed a copy.  Okay, he has a point, but if the company just handed out copies of the software, then they would not have the resources to keep it current, make fixes or plan for future enhancements.

The hardware was a somewhat more than what he had in mind, but the IBM midrange system proposed had far more capability and capacity than the several smaller servers that he used now that would be replaced.  Add in energy savings, reduced maintenance and ease of operation numbers to the TCO and the system made sense. 

What he had trouble most with was the implementation. 

This really surprised me.  He had explained in some detail how the previous implantation they did in-house was arduous, exceeded their budget, time frame and patience.  Yet, when presented with a reasonable budget number range, he became uneasy.  Perhaps the total number was just not what he had in mind to invest in the growth of his company.

Some companies, not just in software solutions, give an estimate of Software and Hardware and hope that you will think it is a good deal.  It probably would be except for the fact the single biggest category is implementation. 

TCO must be factored into the Return on Investment (ROI). 

Is one machine cheaper, but has higher energy usage, or shorter lifespan necessitating early upgrades and updates?  Would he prefer the estimate did not include implantation or we not speak of it or it only lightly addressed issues that we assumed he and his staff would take care of?  What happens when the system is delivered and no one is there to implement it?  ERP solutions are not like software purchased at retail locations where you just insert a disk into your workstation, click and go.

There is a long list of cost factors to include in all three categories we discussed and they will be the subject of future discussions.  The point here is that you will indeed, get what you pay for.  You are not going to change that fact.  You just have to ask yourself if you want to know about them upfront or find out about them later.  When you walk into a new room, is it helpful to have the lights on?

 

Dolvin Consulting works with manufacturers, distributors and specialty retailers to help them identify areas that can be streamlined with technology solutions, so that their costs are reduced and profits can increase.  Perhaps you are already doing everything you can with your budget, but you might not know that if you do not contact us today.  Reach out to us so that we can start working with your team.

Completely Integrated Enterprise Resource Planning System

According to Specialty Products’ Mina Cox, “When I speak to other executives and hear about the technical issues they have experienced with other systems, I realize that we just don’t have those concerns with VAI.  Happily, we are busy running a business, rather than dealing with bad information or down systems.  The bottom line is that VAI fundamentally provides a strong and dependable solution with the technical resources to provide back up and support if there is a problem.”

Additionally, Specialty Products is better equipped to provide excellent customer service. The company can boast 99.9% on-time shipments, 99.9% inventory accuracy, and a less than .02% error rate.

Read the full story by clicking here.

Specialty Products’ daily operations were challenged with the use of an older material requirements planning (MRP) system that was ill equipped to handle the company’s growing business needs.  Further, changes to the system proved complicated and cumbersome, and their previous software vendor offered inadequate technical Support.

The company demanded a solution that offered a flexible, feature-rich software package to handle its expanding business needs, streamline warehouse environments and provide an integrated platform to help Specialty Products speed ahead of the competition.

Specialty Products reviewed several Enterprise Resource Planning (ERP) packages. 

Some chief concerns were:

·         The warehouse staff needed to know, in real-time, the exact location of every product and the inventory counts for each item.

·         They needed a one-step order processing procedure including the ability to pick, pack and ship product in one easy step.

·         They needed a system to instantaneously pull up customer orders with attached tracking numbers, link these to its GPS website, and then interface the order with UPS WorldShip™.

Finding the Right Partner. 

 

Specialty Products was particularly impressed by the fact that VAI’s S2K Enterprise software suite would provide the company with all of the ERP capabilities enjoyed by larger manufacturers and distributors.

 

Mina Cox, Specialty Products’ Chief Operating Officer, noted, “VAI’s comprehensive, sophisticated ERP platform is a world-class system, and I would place it head-to-head with any major software developer. Companies like SAP and Oracle offer similar capabilities, but at a far higher price point.”

 

Mina Cox, also noted, “The best features of VAI’s software solutions are the extensive user-defined capabilities available in the major modules. This allows for a wide range of flexibility without requiring a great deal of additional programming. The software can be adapted quickly and easily— a real bonus for our fast paced industry— and the dashboard allows us, as executives, to monitor the performance of all the key areas of our business on one screen."

 

VAI’s S2K for Distribution and S2K for Manufacturing have helped Specialty Products to get the up-to-date, high quality information that it needs to run a competitive business.  Additionally, the company has seen a tremendous cost savings.  Notably, the cost of maintenance is significantly less than that of its previous vendor.

 

These highlights really tell a story. 

Many companies are struggling and have perhaps hit a glass ceiling.  The problem with glass ceilings is that they are glass and hard to see.  You end up with headaches from hitting your head so often.  Specialty Products knew there were better solutions, but were probably disillusioned knowing the solutions were out of their budget range. 

 

Along came VAI.  They took the time to listen.  They took the time to understand.  Specialty Products reviewed several contenders.  Any company should do this.  I would highly suggest investing in a consultant that will become a trusted advisor to help you understand and document your challenges, then take that information and select three solution providers to review in-depth. 

 

The ERP solution is important, but equally important is the future relationship you will have with the solution provider.  This is no small requirement and must be understood.  The relationship you develop is critical to your success.

 

Most companies including Specialty Products value their customers and provide the best service possible.  In this case same-day shipping.  That shipment better be right.  The supporting environment must support those efforts.  VAI has that commitment to their customers.  It forms a chain of responsibility that fosters growth.

 

Let Dolvin Consulting help you narrow your search.  We take the time to work with you to understand your challenges and match them to available solutions.  Contact us today.  We are here to help and we care.