Companies engaged in manufacturing and distributing products and services plan, source, make and deliver products during their day-to-day business operations. The challenge lies in ensuring that they have best-in-class processes and systems in place to help optimize their operations.
- Lack of rigor in defining and implementing best-in-class business processes
- Lack of an integrated ERP system that supports all business processes
- Embedded processes in the ERP system that are not best-in-class or industry specific
Enable Compliance: Companies need to have processes and systems in place to limit risk, comply with reporting requirements, and ensure that their actions will not conflict with any laws. Automated, centralized, and standardized processes help to limit risk and the cost of compliance.
Enable Quality: Quality processes and systems should support test planning and in-process testing and industry and international standards and best practices, including ISO TS19649, ISO 9000, 9001, advanced product quality planning (APQP), corrective action/preventive action (CAPA), production part approval process (PPAP) and e-Pedigree. It should encompass audits, document management, supplier quality, shop floor quality, and sales and PO receipt transactions.
Enable EDI: Electronic Data Interchange (EDI) has emerged as a common method for companies to automate business communications with trading partners. Companies require a standards-neutral system to support common business transactions such as sales orders, purchase orders, payments, receipts, customer consignment consumption, supplier drop ship (EMT), Kanban, inventory levels and scheduled customer releases.
Enable Maintain Assets: Companies need processes and tools that enable them to operate plants more smoothly by keeping equipment running at the lowest cost. They need to manage capital projects to efficiently bring their assets "online" and then manage those assets through operational life and replacement, while minimizing lead times and MRO inventory costs.
Enable Schedules: Issuing individual purchase orders to suppliers from whom you order routinely requires unnecessary paperwork and is inefficient, unpredictable and prone to errors. Similarly, processing individual sales orders for customers who you ship to routinely is inefficient and unduly burdensome. A more effective way to manage frequent transactions is with schedules released against contracts or blanket orders.
Enable Projects: Companies need project management tools integrated with ERP systems, tied into financial systems and suited for planning and executing new equipment projects. Such tools should track capital, expense and customer funded spending, trigger milestone payments based on supplier schedules, trigger sales order shipment and invoicing, control spending against projects based on approved budget, break projects and budgets into sub-jobs for easier management and have the ability to reallocate budgets from one project to another.
Enable Transportation: Companies need an integrated process that manages international trade and ensures global regulatory compliance. With Transportation Management, organizations easily can control transactions for transportation, trade and compliance business processes from one system.
Enable Warehousing: Even though warehouse management processes and systems have matured, the pressure to increase the velocity of inventory through the warehouse remains. By implementing better logic, advanced algorithms and technologies such as RFID and Wi-Fi, warehouse processes are becoming more efficient.
Enable Complex Pricing: Pricing plays a crucial role in determining sales volume and profitability. Pricing models should be flexible enough to accommodate a wide range of pricing situations, tailoring prices to the market conditions and customers to maximize profit. Pricing models must accommodate promotional campaigns or one-off, time-bound discounts.
Enable Consignment: Companies are able to lower inventory costs by having suppliers send materials on consignment. Companies may find competitive differentiation by sending customers inventory on consignment. Consignment inventory tracking is important in determining transfer of ownership and ensuring timely invoices.
Enable Serialization: Cradle-to-grave lot/serial number traceability through the materials system ensures the integrity and configuration management of critical parts and products. Tracking processes and systems should support compliance with regulations such as Waste Electrical and Electronic Equipment (WEEE) Recycling of Hazardous Substances (RoHS), and Hazard Analysis and Critical Control Point (HACCP), and provide traceability, control and status lots and e-Pedigree as mandated for compliance with Current Good Manufacturing Practices (cGMP) and similar regulations.
Enable Configuration: Mass customization has become a norm. Customers expect the exact product they want delivered to them as quickly as possible. The ability to allow customers to order configured products is a competitive differentiator, but it doesn’t come without cost. Without the right tools in place, there can be added effort and an increase in errors throughout the supply chain. Companies must have processes and systems in place that allow them to design, manufacture and deliver configured products.