Posts Tagged ‘Distribution’
Introduction to 73 Ideas to Reduce Costs and Build Profits in Ware-Housing, Distribution Centres and Inventory Management
“Do you want to know 50 great profit building ideas that you can put to immediate use in your business to increase profits and reduce costs?”
If YES read all these ideas that have been implemented by clients and have benefited them giving their businesses dramatic boost in profitability. Most ideas can be put to action immediately. Each idea has the potential to give you many %points increase in net profits.
Research shows profits increase by 4%-56% and costs reduce by 18%-37% within 2 years using the simple 5 step process called the Profit Maps Model. Usually a 5% reduction in cost is adequate to turnaround most loss making businesses.
Businesses can calculate the value of the savings by these 2 simple formulas
If the business made a loss
Total Costs and Expenses = sales + absolute value of net loss +/- income tax = say X
Minimum Savings you will make in 2 years = 5% of X (which was calculated above)
If the business made a profit
Total Costs and Expenses = sales + net profit +/- income tax = say Y
Minimum Savings you will make in 2 years = 5% of Y (which was calculated above)
So how much can you save? Improve your profits by?
25 Ways to be more efficient and serve the customer better in the contact centre
20 ways to reduce your cost per order, increase capacity without expansion and improve service levels in warehouse and fulfilment
17 ways to improve management of forecasting and inventory
11 ways to plan for, select and implement effective multichannel business systems
Conclusion
The more you understand the power of this list, the more you’ll realize you must get your hands on all the other ideas to benefit your business. Go to www. profitmaps. com. au to obtain and use a simple 5 step process that can do this for your business.
As mentioned each idea has the potential to increase your net profit margin by many % points. Research shows profits increase by 4%-56% and costs reduce by 18%-37% within 2 years. Usually a 5% reduction in cost is adequate to turnaround most loss making businesses.
To obtain the maximum benefit and ensure that the actions result in improving your bottom-line you need a structured methodology or a process on an on-going basis such as the 5 step process suggested in www. profitmaps. com. au.
Infor ERP Syteline in wholesale distribution supports multi-tier customers, multi site and multi warehouse. It also comes with greater flexibility than others. An ERP system is bound to give solutions which are specific and in line with globalization and price pressures. Infor ERP Syteline also offers solutions to a wide range of companies manufacturing products with distinct parts or by blending ingredients, lean manufacturing to wholesale and distribution. Infor ERP Syteline is build on flexible, open and service oriented architecture with latest web based user interface, it is capable of automating complex manufacturing and financial processes, collaborate with complete supply chain and reduce wastes and improve quality and productivity. Syteline in wholesale distribution works as an effective tool by providing wholesale distribution companies the solutions related to minimize inventories and reducing redundancy. It has features for improved order processing, inventory management, warehousing and shipping. It also helps the companies in expanding into new market segments and lowering the cost of products for higher operational margins. A wholesale distributor needs to look into new sources of revenue for increasing their value. Infor ERP Syteline helps in maintaining a balance in customer demand, complementary products and profitability of a wholesale distribution company by providing demand planning, transportation management and supply chain design to resolve industry specific issues and improve business performance. Infor ERP Syteline in wholesale distribution can reduce operational cost and improve efficiency. It also helps such companies by providing incisive look into transactions through out the enterprise. Infor ERP Syteline for wholesale distribution companies comes with support for rate shopping, pricing from sheets to contract specific and quoting of prices to current and prospective customers both. It also covers sales kit and logistic and shipping module gives full parcel and carrier support. Ideally infor ERP Syteline provide solutions to all the aspects of wholesale distribution company. It provides solutions to streamline purchasing by anticipating demands from the current customers as well as demand generated in the market due to new trends and customers. By streamlining the purchases as per demand, it helps in reducing dead inventory. It provides solutions for contract management and optimal sourcing or supplier decisions. It also adds value by helping in making profitable decisions for kitting and assembly of finished products. It also helps in the most vital aspect, sales and service, of any wholesale distribution company by improving the existing functions and suggesting new ones according to recent market trends and demands and based on anticipated demands as well. Infor ERP Syteline covers the whole gamut of wholesale distribution from sales and services to purchases and inventory maintenance, lowering cost of products by effective transport management, optimum supply chain and improvement of operation and financial functions. Flexibility of this ERP system helps in easy implementation and compliance with on going software system reduce efforts in its deployment. Availability of this product as SaaS gives an easy option of using it. Whether it is a big distribution company or a small new enterprise infor ERP system for wholesale distribution gives a definite advantage in decision making and improving efficiency.
The argument for a holistic ERP software solution against best of breed, point systems to handle organizations’ supply chain management execution and logistics requirements has waged for many years and is almost a religious argument.
The ERP software case has always been about implementing a common technology platform that can deliver a fully integrated ERP system across an entire organization, generating cost savings and reduced implementation times.
Best of breed argues that companies need the additional functionality and expertise that can only be achieved by working with specialists in a particular field.
The answer, as is so often the case in business – is somewhere in between. Why should companies sacrifice functionality for the significant benefits and cost-savings to be gained from an integrated system – and vice versa? There is no real right or wrong – it is all about identifying the business drivers and how best to meet them.
Not all ERP software solutions are the same. Some established ERP systems have a supply chain solutions heritage. This means the functionality and multi-location, multi-country and vertical specific capabilities of each element of the system holds up well, and often more favorably, against many of the best of breed suppliers. Even with functionally rich solutions the largest extremes of warehouses or the most complex transportation requirements can probably only be handled by a specialist advanced best of breed system. This is because the total ROI stacks up, but the reality is that these form a small percentage of the market.
Most companies need to look very closely at the bigger business benefits to implement ERP as an enterprise-wide integrated system, against the advantages to be gained from having the odd extra feature or capability.
The functionality of ERP systems has risen dramatically over the years and the gaps between them and best of breed applications are becoming less and less. The decision between the two may come down to companies’ overall IT strategies. If it is already fragmented then it makes sense to add best of breed applications for specific operational areas. However, if the strategy is to move to a more rationalized common operating platform that can enable faster, more cost-effective deployment, complete integration and visibility that provide comprehensive means for measuring the business then integration ERP software is a clear winner.
Having several best of breed applications inevitably creates silos of information across a business. Whatever best of breed solutions claim about their applications’ ability to integrate with other business management supply chain systems, there is simply no comparison with an integrated ERP solution.
The whole principle of an ERP system is that it is already integrated – best of breed simply can’t win this argument. Often each best of breed application has its own reporting tools, its own database management system and its own specific means of operation or integration. A good ERP system has a common solution for each of these across the whole organization.
ERP also has an advantage when it comes to adding further applications and functionality. For example, some solutions have created a Parcel Carrier Integration (PCI) application that allows companies seamless integration between the supply chain inventory management systems and the parcel carriers’ own systems as well as customer services.
In doing so, PCI allows customers to save time within the warehouse, provide increased carrier flexibility, reduce errors, improve customer service and increase overall profitability. To add this functionality using a best of breed application would require considerably more in terms of time and cost to implement because it would have to be integrated with existing systems – if it were even available. Indeed most warehouse management software systems do not have their own transport systems and often partner with other best of breed solutions. As part of an ERP system it is already integrated and can be implemented and working very quickly.
Where an ERP solution can bring specific industry capability, experience and high levels of supply chain execution functionality, the argument for going best of breed is a hard to one to win. For the sake of selective localized productivity improvements, companies are adding significant costs, increasing implementation time and risk and missing out on the massive benefits gained from complete integration and lower costs of ownership.
Companies should not just settle for either option, they need to know that they are getting a system without compromise. At the end of the day the secret is delivering business benefits and increased profitability and finding the right ERP solution for your business.
Organizations have changed with separate applications modules such as inventory control or purchasing and are now placing great emphasis on the use of enterprise data solutions such as ERP (Enterprise Resource Planning). The action involves much more than the ability to fully integrated systems and data are visible. According to Rebecca Gill, vice president of International Technology Group, “Enterprise 21 is the ERP solution is the next generation in manufacturing, wholesale distribution and accounting solutions. It was developed by TGI in response to the need for sophisticated systems TI developed to support a changing environment. The ERP system integrates Total Quality Management philosophies to enable organizations to better serve its customers through superior manufacturing and distribution functionality and fully integrated Customer Relationship Management (CRM). “ The actual outcome of the capacity, the use of data stream processing and maximizes operational to provide Total Quality Management. In relation to the implementation of new ERP systems are global organizations best practices, benchmarking and reengineering of business processes to improve every aspect of product quality and customer service. Organizations have recognized the foundations rediscovered that the most effective, quality products and exceptional customer service is delivered. Enterprise 21 provides a solution for organizations for software to fulfill its strategic role of facilitator should be able to change as quickly as the economic environment, while at the same time providing superior core functionality to meet the need to adjust too recognize. Enterprise offers a robust 21 ERP software is flexible enough to manage small and medium enterprises in a number of vertical markets. About Technology Group International, Ltd. Founded in 1990 with headquarters in Toledo, Ohio, Technology Group International is a proven technology leader delivering Tier 1 application software functionality at a price / performance level that can be readily accepted by organizations of all sizes. Specializing in software solutions for small and medium manufacturing and distribution company, TGI’s integrated suite of Enterprise Series solution is a complete business process management. The product offering includes Enterprise Resources Planning (ERP), Manufacturing Resource Planning (MRP), Supply Chain Management (SCM), Warehouse Management System (WMS), Advanced Planning and scheduling (APS), Decision Support System (DSS), Business Intelligence (BI), Manufacturing Execution System (MES) and electronic commerce. TGI implements, maintains, promotes and supports the distribution and manufacture of packaged software solutions directly and through its channel partners.
The four definitive trends in the National Association of Wholesale Distributors of the publication ‘Facing the lists of the Forces of Change are fairly simple, although the results of these customer expectations is often difficult for an unsuspecting dealer. Learn how to successfully meet these trends is often by supporting the implementation of an enterprise resource planning (ERP) software package is a critical first step for wholesale wird.In Forces Front for Change (available www. Nawpubs. Org) the four trends are detailed: • Customer Self-Service: To provide customers with the latest technology, provides access to data account and offers customers an avenue to act immediately on this information as necessary. Examples include functions such as online ordering, online access to product offerings and documentation, configuration management of interactive products and access to inventory or order status. Not all ERP systems are equally suited to meet this requirement distribution. • Strategic Sourcing: The use of purchasing power of an existing organization to transport and low cost products to reduce product delivery times and streamline the entire purchasing process. In companies with multiple locations, this can easily be achieved by centralizing purchases, the introduction of formalized purchasing policies and the automation of the procurement process through the use of the distribution of MRP or DRP processing. Again, many ERP systems do not meet the needs assessment of distribution. Services • Fees and charges: This approach will enable dealers to offer value added services to differentiate themselves from their competition and increase profitability through customer service, offering both a want and need. The key is in the products that complement the exceptional services, customer profitability and support themselves in the acquirer to achieve their own goals to help provide supplies to be protected. Many ERP systems are not exceptions in the joint distribution. • Logistics and Compliance: As more third-party logistics, provides the market share of wholesalers, distributors have the old school have become wiser and compete with their service performance. simple processing of cash is no longer appease the average customer, retailers must offer their customers in order to promote a value-centered spectacle. ERP systems have the capacity to meet unterbringen.Das Founded in 1990 with headquarters in Toledo, Ohio, Technology Group International (www. tgiltd. com) is a proven technology leader delivering Tier 1 application software functionality at a price / performance level that is easy for organizations wholesale of all sizes can be accepted. A best-in-class ERP software solution provides the blueprint as a basis for the management of the four trends described and Enterprise 21 offers functionality well beyond the standard distribution package. Enterprise 21 provides full ERP functionality with a fully integrated module for electronic commerce. It is one of the few ERP systems to the needs of today without the need for more expensive and time consuming modifications to perform.
