VAI's Robust MRP Solution Elevates Aiphone's Business Operations

Aiphone Corp. USA, the Japan-based intercom systems manufacturer, has recently announced that it is optimizing its core business functions with VAI’s Material Requirements Planning (MRP) solution. Based in Nagoya, Japan, Aiphone exports to over 60 countries with its marketing and sales distribution center near Seattle, Washington. Aiphone products range from simple do-it-yourself door answering units to sophisticated video entry security systems, complex microprocessor-based commercial systems, and luxury condo/apartment security and communication systems.  

As the company's business grew into more complex markets, Aiphone Corp. USA needed an IT solution that would be able to predict interruptions, dissect data in real time and streamline the sales process. With VAI’s MRP solution, Aiphone Corp. USA is now able to respond to changes in supply and demand more quickly while maintaining a deeper view into production analytics. Aiphone Corp. USA has experienced a significant increase in business productivity, sales and performance after installing and implementing VAI’s full MRP solution.

VAI is an independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Partner, VAI is the 2012 IBM Beacon Award Winner for Outstanding Solutions for Midsize Businesses. To learn more about the implementation, VAI's MRP solutions, and other products, visit the VAI Newsroom.

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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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