Advanced Supply Chain and Warehouse Management Systems

Whether the warehouse is at the plant holding raw materials and parts, or dedicated to finished goods somewhere in the distribution chain, companies want to get the best usage of the space available and the people and equipment employed in the handling of the items stored.

A Warehouse Management System (WMS) is dedicated to those goals. Basic functions of WMS include directed put-away and picking, in conjunction with optimizing the use of space. Without computer assistance, goods are usually assigned to a specific location or at least segment of the warehouse. With computerized put-away (also called random location system), the computer can direct incoming goods to the ‘right’ location – one that makes the best use of space while placing the goods in the most convenient location for picking.

In addition to optimizing space and resources, WMS, working with and interfaced ERP system, can share the duties of inventory control including batch/lot traceability, and monitoring and enforcing shelf-life and first-in-first-out and other picking strategies. More advanced WMS functionality can develop and manage dock schedules, interfaces and directs automated material handling equipment including guided vehicles and carousels, and gathers detailed data on all warehouse activities for analysis and process improvement efforts.

To learn more about the Advanced Supply Chain WMS for manufacturers and distributors, and the features they can provide, visit the Advanced Supply Chain Software website.

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Advanced Supply Chain for Sales & Operations Planning

The purpose of the supply chain is to deliver value, in the form of product and services, to the customer. The supply chain has resources – plants, warehouses, people, skills, inventory, etc. – that it employs to achieve this objective. Planning and coordination of the resources to meet the goal takes place in a process known as Sales and Operations Panning or S&OP for short.

A simplified S&OP process works like this:

1. A new forecast update (based on the latest sales data) is reviewed and modified to become a preliminary demand plan.
2. The supply planning team prepares a production plan that will make and distribute enough product to satisfy demand.
3. Supply and demand teams meet to work out a “best” plan that makes effective use of resources to satisfy expected demand.

This likely will involve some compromise in order to reach a decision that is overall best for the company and its customers. Often, the S&OP work is presented to the company’s functional executives – the heads of sales and marketing, production, materials, engineering, finance. The executive S&OP decision makers typically come together to review any updates to the plan, commit their respective departments to the plan, and make the hard decisions that involve compromises, commitments of funds or resources, or strategic matters. This limits the amount of detail involved,  keeps the process manageable, and focuses on volume.

To learn more about the Sales and Operations Panning process and how Advanced Supply Chain software can improve performance and the decision-making process, visit the Advanced Supply Chain blog.


The Brown Smith Wallace Distribution and Manufacturing Software Guides are currently available for download. Please contact snelson@bswllc.com for more information about the latest editions.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

 

Effective Approaches To Replenishment for Warehouse Inventory Management

Most companies consider warehouse inventory as a necessary evil – an expense that they’d rather not have to pay but a requirement for delivering the necessary service level to customers.

The challenge for supply chain management is to have the optimum amount of inventory (just enough to provide the desired service level) in each warehouse by managing replenishment.

Typically, there are three approaches to replenishment – push, pull, and distribution requirements planning (DRP).

In the push approach, central supply (the plant) manages replenishment. Push has good visibility but the plant is furthest removed from the source of demand (customers) so will likely fall short on customer service at the lowest levels of the chain. In a pull system, replenishment is triggered by orders from the bottom of the chain ‘pulling’ inventory from the next tier, which in turn orders from its supplying warehouse, on up to the plant. DRP is a time-phased, forecast-based replenishment approach very similar to MRP, with the distribution network structure providing the connections rather than the bill-of-material.

While all of these approaches are viable, each has its strengths and challenges. To learn more about each one, and solutions for effective management, visit the Advanced Supply Chain news blog.

The 2013 Brown Smith Wallace Distribution and Manufacturing Software Guides are currently available for download. The 2014 edition will be available in April, 2014. Please contact snelson@bswllc.com for more information.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

 

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Eliminate Shortages And Minimize Inventory With Supply Chain Management

The main purpose of a supply chain is to get goods – whether raw materials, parts or end products – to where they are needed, when they are needed. The challenge is to do that in the most efficient (cost effective) way.

This is the primary challenge of supply chain management – eliminating or minimizing shortages while at the same time carrying as little inventory as possible. This is easier said than done, of course, because fluctuations can be hard to predict – and carrying extra inventory is counter to the efficiency that the supply chain is trying to achieve.

There are a couple of factors that can be manipulated to improve supply chain efficiency. One is reducing variability. Variability of demand is difficult to address – customers buy what they want, when they want it – but collaboration can help reduce the uncertainty and sometimes provide some advanced warning that things are about to change. Having access to point-of-sale information also helps up-stream suppliers, including warehouses and distribution centers, and see demand more clearly and earlier.

To rear more, visit the monthly news blog at Advanced Supply Chain Software.


The 2013 Brown Smith Wallace Distribution and Manufacturing Software Guides are currently available for download. The 2014 edition will be available in February, 2014. Please contact snelson@bswllc.com for more information.

2013 Distribution Software

2013 Manufacturing Software

You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

 

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Warehouse Distribution Software Cuts Shipping Inefficiencies

Shipping is a core competency for wholesale distributors yet most distributors lack an efficient shipping process.  

Some of the biggest sources of waste are as follows:

1) Excessively large cartons: Using cartons that are too big for the products being shipped will result in wasted materials, labor and freight costs.

2) Overprotection: Poorly trained or undermanaged operators can use the wrong materials or excessive amounts of materials when it’s unneeded, wasteful and expensive. This kind of waste also makes customers unhappy because the packages are hard to open and generate a lot of trash.

3) Unneeded expensive equipment: Costly equipment is hard to justify for shipping operations that don’t handle high volumes of homogeneous shipments.

4) Improper shipments: Shipments via company trucks are a costly choice when an outside carrier could complete the job for less.

5) Eating shipping costs: Failure to recognize opportunities to pass freight costs along to customers can add up.

Fortunately, technology can help to improve the shipping process. Warehouse distribution software plays an important part in managing shipping for distributors. To read some examples of how technology can help you streamline your shipping process, visit the Advanced Distribution Software Today news blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Wholesale Distribution and Supply Chain Analytics

Supply chain analytics can lead to better performance, but many distributors aren’t even scratching the surface of what they can do.

A recent article from Data Informed on the Advanced Distribution Software website reports that nine out of 10 distributors are struggling to bolster their business. There are two main reasons for that trend: the inability to view the supply chain as an elaborate system and the underdevelopment or ineffective use of analytics.

Analytics is the process of breaking down complex information into its elements, organizing the elements and interpreting them. For most companies, the word analytics is synonymous with reporting. But despite thirty years of supply chain technology evolution, the most commonly used system for supply chain planning is a spreadsheet. Companies cannot effectively model the trade-offs of growth, profitability, supply chain cycles such as procure to pay and inventory turns, and business operations complexity on a spreadsheet. As that complexity increases, most companies are unable to use supply chain systems to improve operating margin and inventory cycles.

To learn more about supply chain analytics and read more of the Data Informed article, visit the Advanced Distribution Software news blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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CRM Systems Increasingly Popular In Distribution Sales Management

CRM systems are becoming more popular in distribution sales management because they’re flexible, innovative and easy to use.

Industrial Supply magazine recently reported that 61% of distributors already have CRM systems incorporated in their business plan. One of the main strengths of a CRM system is that it allows salespeople to access key information about their customers, all while being out in the field. Additionally, management can monitor sales in real time, so salespeople don’t have to search for data when an issue arises. Additionally, CRM also helps with sales coaching, ensuring that salespeople are targeting the right goals with their customers.

However, the biggest impact CRM systems have made is in helping to develop strategies to increase sales. According to the article, 75% of distribution executives acknowledged that improving sales is a major priority. In an effort to improve sales, they plan to “hire new salespeople, redesign sales incentives, build value-selling skills and improve coaching by sales managers.”

To read more, visit Advanced Distribution Software's News blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Current Trends Impacting Distribution Strategy

Four key trends have played a significant role in influencing distribution strategy through the first half of 2013 - and are helping to turn around the distribution industry after uncertainty plagued businesses in 2012.

A recent article on the Modern Distribution Management website outlines those trends, which include: 

1) Human resources must become a focal point for hiring and training, even for smaller businesses.

2) Paying more attention to data and how to use it to implement changes and improve margins.

3) Looking for ways to increase growth by adding lines of business and new products.

4) Mergers and acquisitions remain popular and consolidation is changing how distributors use technology and the type of products they offer.

To read more, visit the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Planning for a Supply Chain Management Crises

Not planning for potential crises can be costly in supply chain management, as all 50 states have gone through some type of disaster in the last two years.

A "crises" can be split into two categories: the ones that affect the general population and the ones that are specific to a particular distributor. For general disasters, regional distributors have an advantage because their branches can help one another out. However, the destruction of a central distribution center, one which maintains all telecommunications or information systems can be fatal.

Businesses without an adequate crisis plan usually never reopen after experiencing a disaster. Additionally, between 40 and 50 percent will shut down for good within two years of the disaster.

Visit the Advanced Distribution Today blog to read more and get suggestions for establishing a successful crisis plan in supply chain management.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Distribution Software Improves Forecasting And Collaboration

Using distribution software, such as a customer relationship management (CRM) system, can lead to more successful forecasting and collaboration.

According to a recent article on the Supply and Demand Chain Executive blog, nearly half of all distributors are still using manual processes to forecast, plan and collaborate. That method often causes redundancies and a loss in efficiency. Automation is the best way to eliminate those issues. The job of a wholesale distributor is to have the right product in the right place at the right time. The planning process for distributors has to do with finding out from their customers what they’re going to need and, even better, how much they’re going to need.

The article also offers other suggestions to help with the automation process. Read more on the Advanced Distribution Software website.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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eCommerce and the Supply Chain Management plan

A recent article in Industrial Supply magazine reports that e-commerce first arrived on the distribution scene in the late 1990s, yet only 25 to 35 percent of distributors have an e-commerce capability today. E-commerce is a useful tool, as it allows consumers to make purchases anytime, anyplace, among other advantages.

Wholesale distributors have some choices if they want to use e-commerce as part of their supply chain management strategy, one of which is to just make it a service for their existing customers. That way, customers can order 24 hours a day, seven days a week through the website. That can be done very crisply with the right distribution software. ERP software is well-suited to seamless e-commerce and can be purchased by the distributor. One strategy is for distributors is to buy, rent or lease the best available interface that they can afford, one that works seamlessly with their distribution software.

To read more of the article, visit the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Warehouse Distribution Software And Picking Errors

Warehouse picking can be the biggest expense for a business' warehouse and much of the cost is due to common operational picking mistakes that ultimately delay shipping deadlines. Automating the picking process through warehouse distribution software will eliminate some of these problems. Good warehouse distribution software can provide information on where to relocate items based on their pick frequency, can assign work to employees in a priority order to ensure deadlines are met, and it can update your supply chain in real time, moving products in or out of the system as they are stocked or shipped. For distribution decisions and effectiveness, warehouse distribution software can be one of the most important investments a business can make.

To read more on this topic, visit the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Distribution Software Streamlines the Returns Process

Product returns are a necessary evil.

The process is known for being problematic — data entry is error prone, there’s no link between product collection and credit processing, and it’s difficult to find the root of the weak spot in a returns cycle.

How can you improve the way you handle returns in the warehouse? Distribution software certainly can help streamline the process. The distribution business is transaction intensive, so there are going to be a certain number of returns. But by following key best practices and using distribution software, distributors can reduce errors and maximize their return on investment.

To learn abou the four best practices distributors should master for improving the returns process, visit the Advanced Distribution Today blog.

To learn more about the ways ERP Distribution Software can improve your business, visit the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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ERP Distribution Software Can Improve Accounts Receivable

Using ERP distribution software to get better visibility into your accounts receivable can skyrocket your cash flow beyond the traditional accounting process. Automated ERP accounts receivable process boosts your operational advantage. Plus, it’s often the lower cost method to improve productivity and enhance the financial process.

When your accounts receivable process is done manually, visibility and productivity are low, financial planning is ineffective and, worst of all, mistakes are plentiful. Look at cash application tasks, for example. If you receive a check from a customer with a rounded amount, the tendency for your finance staff is to apply that amount to the oldest invoice first. However, what you may be doing is applying that cash to an invoice the customer never received or an invoice they’re disputing. Manually doing this is completely blowing the older invoice off the system and leaving the current invoices unpaid. This process is handled different in an ERP distribution software system, though, where notes can be inputted on customer files and individual invoices.

To learn more about the ways ERP Distribution Software can improve your business, visit the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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Is Consumer Technology Changing Distribution Strategy?

Distribution strategy is changing as consumers become more knowledgeable about products through the use of devices like smartphones.

An recent article on the Supply & Demand Chain Executive website reports that 62% of survey respondents report using their cellphones to conduct research before making important purchases. Meanwhile, only 10% use their desktop computers for the same purposes. That means that by the time consumers call a distributor, they’ve already used their smartphone or computer to do some research on the products that are available. They’ve obtained features, advantages and benefits information, perhaps from the manufacturer’s website, or they may have even read reviews about the product from other users. How can the distribution industry be prepared to meet these new challenges? Read more of the article and research findings on the Advanced Distribution Today website.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

2013 Distribution Software

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Should E-Commerce Be A Part Of Your Distribution Strategy?

The biggest star in distribution today is e-commerce. Customers want it and distributors need to have it to survive in a competitive business atmosphere. But, studies show that many distributors generate no revenue from e-commerce, while others have no plans to even enter the e-commerce market.

What should distributors consider when planning a move into e-commerce? First and foremost, find a trusted business partner. Developing your online ordering system is not the job you want to assign to a newbie. E-commerce provides great competitive exposure to your company — exposure that comes quickly and is completely open to the world. You need professional help to manage that. This isn’t just programming a website so it works. How do you decide what products to feature in your electronic catalog? What’s your pricing strategy? 

Your primary objective with an e-commerce platform is simple: increase profits. Your existing customers want to do business through an e-commerce system, and they’ll go somewhere else if they can’t do it with their existing supplier. New customers want the same thing. To learn more about integrating e-commerce into a distribution platform, read more on the Advanced Distribution Software website.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Should Distributors Join Associations To Improve Supply Chain Management?

Joining professional and trade associations can help individuals and businesses flourish in supply chain management. An article from Supply & Demand Chain Executive explains that associations also a useful tool to recruit new talent to the industry.

Why would a distribution organization choose to belong to a supply chain management trade association? Because not being a member says more than choosing to be a member. By not joining, the distributor is sending the wrong message. The distributor is, in effect, telling its employees or the people in its organization that it doesn’t take part in industry activities, it doesn’t want to support industry advocacy, and it doesn’t want to support education and training for its people. In wholesale distribution, trade association membership is vital. Networking is one of the major perks of joining an association, the Supply & Demand Chain Executive article notes. Some of the other benefits include access to industry research, which includes financial benchmarking studies and educational training.

Read the full article on the Advanced Distribution Today website.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

2013 Distribution Software

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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How Can Distribution Software Help Optimize Inventory Levels?

How can distributors better optimize their inventory levels? There’s no question that distribution software plays a big role. A wholesale distributor is an integration of seven different functional areas — sales support, office administration, warehouse distribution, purchase, operations, finance and human relations. Each of these departments play a role is sourcing.

ERP systems can anticipate customer needs. CRM software is the communication pipeline between the customer and the company. It’s the vital link between the customer and the sales, purchasing and other areas of management. The big payoff from using CRM, though, is maintaining inventory levels for customers. Inventory levels can be adjusted in response to changing customer needs, avoiding housing excessive stock and stock-outs. ERP systems can track vendor lead times, predict customer usage rates based on past history and calculate safety stock.

To learn more about how to maximize distribution software, and take advantage of its capabilities, read the rest of the article on the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

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Three Technologies Distributors Must Implement

Every wholesale distributor’s supply chain strategy must emphasize rapidly advancing technology tools.

A recent article on the Modern Distribution Management website highlights the three technologies that distributors can benefit the most from in 2013. 1) E-commerce, 2) Mobile computing, and 3) Analytics.

By making sure your systems are functioning at peak performance in these three areas, you'll be able to provide and have access to actionable information that can make a real difference.

To read more, visit the Advanced Distribution Today blog.

The Brown Smith Wallace Distribution and Manufacturing Software Guides for 2013 are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

2013 Distribution Software

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You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

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Should Businesses Invest In Distribution Software?

Economic growth is on the horizon. For distributors, that means now is the time to invest in their own business and distribution software.

At the recent National Association of Wholesaler-Distributors executive summit, economist Alan Beaulieu of the Institute for Trend Research told attendees that he’s bullish about 2013, according to an article on the Modern Distribution Management website.

That means this is a good time to invest in wholesale distribution businesses, although it’s not a sign to go on a hiring spree. Instead, distributors should invest in technologies like distribution software, along with efficiencies and training that will make their workforce more productive.

Read more on the Advanced Distribution Today blog.

The 2013 Brown Smith Wallace Distribution and Manufacturing Software Guides are currently available.

You can download each one directly, or visit our main website to request a copy. Please follow the links below.

2013 Distribution Software

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To request these guides, as well as our other materials, visit our main website at: http://www.software4distributors.com/vendor/resources_index.aspx

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