Like you, your customers want to do business with someone who can reliably deliver
what they want, when they want it and how they want it. Your success depends on
your ability to do this well, and to do it profitably. However, this isn’t always an easy
feat; given that the business processes that go into delivering perfect orders cut
across many functions within a company. This means that there are lots of places
where orders can go wrong – starting with inaccurate replenishment and stocking
strategies through to order entry mistakes or problems with delivery schedules.

The complicated nature of the industrial supply chain – with its product diversity,
global supply chains and multiple stocking points – doesn’t make it easier. But whether
you are a broad line distributor or specialist in janitorial and sanitation for example,
improving your ability to deliver perfect orders isn’t just important, it’s vital.

This paper explores why you should focus on the perfect order, how to measure
it, and your route to reliably supplying your customers with what they want, when
they want it.

A strong, enterprise-based Warehouse Management System (WMS) can address a variety of
problems facing an increasingly competitive market. Directly tied to the key issues that plague warehouse operations—inaccurate orders, inefficient use of labor and outdated inventory data—are numerous technology solutions designed to address these issues head on. In today’s uncertain, highly aggressive marketplace, technology can be the vehicle to push forward-thinking companies ahead of the competition.

The good news is that there are a number of techniques that a distributor can use to increase productivity and lay the foundation for a more profitable future. These “fixes” are not untested or unproved. Some are from other industries and some have been around but unused. In high growth times, many opportunities for efficiency may have been delayed or overlooked as not
necessary or of a high enough priority to allocate resources. Now the world has changed and it is a good time to consider how some of these capabilities may be used to improve operations.

Consider the current downturn as an opportunity to change the way things are done. Customers and suppliers are all open to new ideas and are willing to try new things. The leaders in each industry will take advantage of the environment to modify what is being done, to streamline operations, and to establish new realities that will have long term effects.

It is a good time to think about redirecting investment of time and effort to create a sustainable future. The ownership of our companies must lead the way to make sure management and
employees do the right things. In the following pages, trends and the status quo will be examined. Processes will be questioned and replacements suggested.

A realistic and honest appraisal of each organization’s strengths, weaknesses, opportunities and threats is required. Then direct and deliberate steps are needed to take advantage of
technologies and techniques that will propel the operation into the future. That is the secret for surviving the current downturn and laying the foundation for future success.

An important element in management theory is the simple concept:”If you cannot measure it, you cannot manage it.” By examining how to make information more visible to the distributor, it is possible to increase their ability to take charge of and manage their environment.

Once the metrics are available, then the use of Segmentation becomes a viable option to better manage the assets of an organization. Using measurements of “value” and profitability” it is possible to divide groups (customers, suppliers, and products) into subcategories which can be individually managed to provide the greatest benefit to the operation. Industrial distributors can use this concept to provide an objective basis for increasing the return on all assets.

For many Industrial distributors, the greatest hurdle will be learning how to develop, track and report the information hidden in their automation systems. Information collected and stored within a modern and properly configured ERP system combined with applications (such as Business Intelligence) can be used to fine tune pricing, inventory, purchasing and customer service levels based on objective measures of value and contribution to profitability.

Companies who make more effective operational decisions based on metrics and segmentation can outperform the competition in all aspects of business.

Cycle Counting:

• Process and Benefits
• Efficiency
• Cost Reduction

Annual Counting Overview:

• Pre-count Tips
• Inventory Day
• After the Count

By Steve Epner
Are you and your management team getting the information you need to make the right decisions at the right time for the right situation?

Landed costs are those sometimes hidden costs that are involved in making goods available for sale. Typical landed costs might include freight, duties, handling fees, and other charges that, if ignored, would distort the cost of the product being sold. While many software systems include basic landed cost tracking, a new breed of software systems is evolving to provide business owners with greater control over how landed costs are applied.