by: Jake Halverson, Business Development

Growing Companies Need Better Inventory Control Methods

On a daily basis I speak with small, growing companies who are managing their manufacturing with spreadsheets. Increasing their lot control and inventory management is always one of the main issues they face with the manual systems they are currently using. These companies typically have someone going through their warehouse with a clipboard; keeping track of the information by hand is far from ideal for them because they have outgrown this method of “inventory management.”

Without using a real-time ERP system for inventory management and lot control, how can a company ever know what really needs to be produced, or how much of a specific product is on-hand at any given time? Data entry errors or duplicate data entry are also issues that these companies all seem to be facing,  and they face a lot of difficulty tracking their batches back to the source because they are not running software that is visible throughout their business.

 Manufacturing companies often waste countless hours each week with their manual systems. Time and resources are essentially lost along with expiring or nearly expired products. Lot tracking issues also lead to many FDA recall issues because the paper trail can be a tedious way to try and find where the problematic batch or batches may have originated – especially when they only have hours to show proof that the specific lot has been quarantined. The only real way to have accurate inventory management is to correctly implement and use a real-time, industry specific ERP solution.

by: Rebecca Kempenich

 Implementation is the Key to a Successful ERP

A successful Enterprise Resource Planning (ERP) solution can grow your business’ bottom line by increasing your company’s revenues and improving your company’s efficiencies. However, one of the most significant factors contributing to its success is the experience and support the vendor provides through its staff and implementation process. Because an ERP model is designed to integrate major business functions into one complete system, the transition can be complex. It is important to have a well laid-out and proven plan to guide you through the implementation process. Read more about the impact the implementation process and team can have on the success of your ERP system. Download TIP white paper.

 by Rebecca Kempenich

What Lean Manufacturing Is NOT

The primary focus of lean manufacturing is speed and inventory reduction, while delivering product quality that meets clearly defined customer specifications. Again, looking at the value to the customer (both internal and external), manufacturers must be careful to balance the cost and time invested into a product with the quality demanded by the consumer. It is much like a three legged stool: speed, cost, and quality representing the three legs. Each leg must be raised or lowered in proportion to the other legs, or the stool is out of balance. Since the primary focus of lean manufacturing is to improve speed, this leg becomes the pivotal leg upon which the other two must balance. Keep in mind, however, that just because lean focuses on speed, it does not mean quality is compromised. The very nature of the principles of lean manufacturing  is to improve the quality of the product.

With all the discussion, books, websites, and other materials on the topic of lean manufacturing it’s hard to know which resources are credible, much less understand the mounds of information that one has to sift through to find the most relevant facts.  We documented the journey of a leading global supplier of reference test fuels and re-manufactured organic solvents as they persist along the lean manufacturing path. Read this whitepaper and gain some unique insight on the concepts of lean manufacturing and ways manufacturers can determine exactly what is needed in the production operation, and why.

Pedigree Tracking – IT Solutions to Make Life Easier

The Prescription Drug Marketing Act of 1987 (PDMA) requires drug distributors to provide documentation of the chain of custody of drug products, a.k.a. pedigree tracking, throughout the distribution system.

The tracing of every entity that has handled a drug since leaving the manufacturing plant can be done on paper, however this approach is subject to errors and forgery, but most of all it does not create the safeguard that the FDA intended with this Act. The FDA favors Radio Frequency Identification (RFID) for track-and-trace applications. The Enterprise Resource Planning (ERP) software packages designed specifically for these highly-regulated industries contain all the tracing tools needed to comply with FDA regulations. 

The automated warehouse solution (AWS) of a fully-integrated ERP is considered the “Cadillac” system for pedigree tracking. AWS operating on a radio frequency backbone provides real-time inventory transactions. Labels are printed for all items so that inventory can be scanned with a hand-held scanning device. The labels include the item number, lot number, receipt date, and expiration date. AWS is able to search and obtain critical information about any item. Inventory items can be issued, received, or transferred without manual entry. An AWS is also a tool for paperless physical inventory and cycle counts.

When an AWS functions synonymously with an ERP, sales orders can be selected without printing sales order pick tickets. Materials, labor, and finished good quantities can be posted to the batch ticket. On the purchasing side, a product can be received from a purchase order without paper. A real-time bar coding solution has the added bonus of increasing inventory accuracy with the tracking of all movement of inventory items. Also, dual entry is no longer necessary, thus reducing the number of potential manual errors.

AWS, as part of an integrated ERP, gives pharmaceutical manufacturers the most complete manufacturing and tracing system necessary to uphold the integrity of their products as well as take the lead in establishing the requirements for the FDA pedigree tracking ruling that affects all parties in the pharmaceutical distribution chain.

Read more about Pedigree Tracking and the functions of ERP software in this White Paper.

by Aaron Gindele, Business Development Rep

Can I see a web demo?

Sure.  But let’s think simple for a minute:   have you ever shopped for clothing online?  If you have, it’s likely you got the color or style you were looking for but they may not have been a good fit. A good fit is impossible to guarantee when shopping for clothing online because you can’t try them on.  An ERP investment is significantly bigger than a clothing investment, and the fit of the software is that much more important.  In fact, the value of ERP software is very dependent on its fit.   

As a Business Development Rep, I have the pleasure of greeting process manufacturers at the front door when they begin their ERP search.  One of the first questions we often hear is “can I see a generic demo?”  As much as I’d like to oblige, I know from experience that it is most often not in the best interest of the customer to give them only a generic overview.  In the Business Development department of ProcessPro, we are as interested as you in making sure our process-centric ERP solution is a good fit at every step of the evaluation process.  This begins with a broad conversation outlining your current pain points, system shortfalls, and gaps in your manufacturing/accounting/quality processes that might be resolved with a competent, fully-integrated ERP solution.  We discuss your criteria for making a decision, your timeline for doing so, and get an understanding of who will be involved and what their role will be in the decision process.  We also want to understand your intended investment in making this important move for your company.  This initial conversation allows us to determine if you’re shopping for the kind of material we have to offer.

From this point, we recommend a visit to your facilities by ProcessPro staff to have a closer look at the context of your specific needs.  We’re able to see how much tailoring will need to be done, and fully realize the necessary functions a new ERP solution will be required to best serve  your company.  This information is collected, analyzed, and brought back to the table to prepare a demo for your environment- much like the pair of slacks that have to have the right waistline, length, and material for the function. 

After the sizing, you’re ready to try it on.  We demo in your environment.  This truly gives you the opportunity to determine the fit of the product for your company, having examined your processes, products, and your needs.   As an ERP software provider that works exclusively with the batch-manufacturing industry, we’re able to hit many of your needs out-of-the-box, allowing us more time to devote to the details- and it’s the details that make the difference between an ‘ok’ fit and a great fit.  

by Shanon Odegaard

SQF/BRC/NFS Certifications

Our customers are becoming more interested in process certification.  As the consumer market has become more aware of quality and safety issues with food sources, manufacturers must follow suit with certifications in order to stay competitive.  Our ability to address these issues offers our customers assurance of being able to meet standards and certifications effectively and efficiently.

The standards and certifications that our customers are looking to comply with include: 

·         British Retail Consortium (BRC)

·         Safe Quality Food Institute (SQF)

·         National Sanitation Foundation (NSF). 

They are all similar in that they are regulated by third party programs. These programs certify that a business is complying with safety and quality standards of that particular organization.  They are all based primarily on cGMP and HACCP concepts and practices, all of which ProcessPro is well-versed.

  by: Gus Towers, Regional Sales Manager, NE

  Are you the #1 priority to your ERP vendor?

Focus (or directed attention as it is defined by Webster’s Dictionary) gets people far in life and is behind some of the most successful people in history.  Focus led Albert Einstein to the development of his special theory of relativity for which he earned the 1921 Nobel Prize in Physics.  It directed Wayne Gretzky to four Stanley Cup Championships and the label of “the Great One” as the greatest hockey player ever. Focus also led Sir Isaac Newton to develop his theorem of universal gravitation and the three laws of motion.  While we at ProcessPro are not claiming to be half as smart as Einstein or Newton, or possess a slap shot like Gretzky, we do place our primary focus on our customers:  batch process manufacturers. 

How do you know if the ERP software company you are looking to invest in and form a long term partnership with has directed attention on your business?  Simple. Ask them one question:  how many customers of yours are process manufacturing companies?  If the answer is “not all of them,” they are not focused on your business.  When you do reference checks, ask their customers if they share time at the user conference with customers from other verticals or if they have to sit through questions centered on auto parts, lumber, or machining.  Are there parts of the software that don’t pertain to the batch process environment?

Some ERP companies started with retail companies and then got into the process manufacturing world; others dealt with discrete manufacturing clients and saw money in the more regulated batch manufacturing vertical.  The problem is that these ERP vendors now have to allocate resources across all the different, sometimes unrelated industries, they service.  Development time, implementation, and support resources are spread across multiple verticals and the end result is a vendor that is a jack-of-all trades and a master of none.  Are they really focused on the needs of the process industry or are they bridging the gap until the auto industry comes back or the housing market rebounds?

What is the benefit of a vendor that is 100% focused on batch process manufacturing?  At ProcessPro, you get full time industry experts across the entire company, from sales and support to implementation and development.  You get a company that is focused not just on today’s regulatory requirements, but also preparing for the ones in the future.  You get a proactive company that is ahead of the curve by being tied in with the FDA and has completed FDA validation at several locations.  Most importantly, you get a company that is with you for the long haul, a company that is dedicated to you and your business all of the time, not just when the other verticals are seeing a downturn.

Batch process manufacturing is all we do, all day, every day, 100% of the time!

by Dave Gerhardson, CSCP

Minimize the impact of a software implementation on daily operations

Implementation is a very rewarding and more often a very challenging task.  There are multiple obstacles that you must overcome to be the transition as seamless as possible.  One of the most common roadblocks is getting people to accept the change to their daily workplace life.  Even though employees realize that the software is going to drastically improve their life that does not change the fact that in the short term they will have to manage both their old way of doing things while trying to learn a new system.  Being aware of the competing demands and doing everything possible to limit the impact of the implementation is one of the best ways to get buy in from existing staff.  Implementation challenges are many, but at the end of a successful implementation it is very rewarding to see the software in use and the users seeing the benefit.

For additional reading on how to minimize the impact of a software implementation on daily operations, I recommend you read the White Paper:  Implementation is the Key to a Successful ERP. In addition, to the following helpful resources:

1.       http://www.netsuite.com/portal/resource/articles/erp/erp-implementation.shtml

2.       http://whatiserp.net/erp-implementation/erp-system-implementation

3.       http://www.erpinsights.com/best-practices.htm

  by Mat Jahnke, Business Development

  Industry Tradeshows

As I prepare to head off to the Natural Products Expo West (NPEW) in Anaheim, CA this weekend, I think about the benefits of attending shows like this. You might think that the best part is getting to travel to locations such as Las Vegas, San Francisco, Anaheim, and other exciting cities. It is great to be able to travel to those places, especially when you live in Minnesota, but there are many great things to see and learn while attending an industry trade show that are even greater than traveling to the city that hosts the show.

I believe the biggest benefit of attending a tradeshow like NPEW is getting the opportunity to network with companies in the process manufacturing industry. Shows like NPEW attract process manufacturers (food, beverage, pharma, nutra, etc.) from all over the world. Manufacturers and suppliers attend shows to make new contacts, expose their products to the marketplace, find new ideas and ingredients to grow their business, and more – and we go to be a part of that.  We provide business development insight, connect manufacturers with similar companies, and talk about how to take advantage of new technology to help grow their business. We are able to provide information so when companies are ready for an ERP system, they have an idea about what is available in the marketplace for things like formulations/recipe management, lot tracking, quality control, and financials.

Other benefits of attending industry tradeshows include industry seminars and workshops. Many of the manufacturers that attend these shows have regulations they have to adhere to like FDA, SQF, and BRC. Many of these seminars focus on new regulations related to process manufacturing. If a company has to adhere to these regulations or would like to get certified in one of these areas, we provide information on how an ERP software system like ProcessPro® Premier can help.

One thing I can’t forget to mention is the opportunity to learn about new companies and products coming to the marketplace. At many of these shows, we are able to sample many different types of food, beverages, and more. I have yet to return home from a tradeshow without a bag of goodies to share with others in the office.

We hope to see you at one of the many shows we attend ever year including:  Natural Products Expo West (and East), Private Label Manufacturers Association (PLMA), International Dairy-Deli-Bakery Association (IDDBA), Summer Fancy Food Show (and Winter), Institute of Food Technologists (IFT), Supply Side West (and East), National Restaurant Association, and Natural Products Association Marketplace.

   by Jake Halverson, Business Development

   Costly Mistake - Be careful when choosing an ERP software!

You get what you pay for. Though it applies to many things, ERP software is a big investment and something that many manufacturers will be married to for years to come. I see time and again the problems that various manufacturers face while putting together an inexpensive, makeshift system. More often than not, smaller companies start with an inexpensive accounting application because it works for their company size, functionality, and budget.

Another component of an inexpensive management system includes manual spreadsheets, which are used in warehouses for tracking orders.  Problems arise as they are sometimes lost or duplicated, which can significantly affect inventory costs. They may make two of one particular product, or half of another, or none of something else, but nobody knows that until the order is ready to ship. The warehouse is unorganized and accurate inventory counts are next to impossible to accomplish.

Choosing new ERP software requires time, a solid committee, quality due diligence, and a variety of software vendors to choose from to ensure that a proper fit will be selected. Cost is always a concern, but cutting corners up front on a cheaper system often times leads to replacing the cheap solution later on. Usually it’s sooner rather than later, and a lot more expensive when companies don’t get a good fit the first time. Working in business development, I speak with people on a daily basis who are looking for “something better.” Choosing the wrong system because of price point or up-front cost can definitely lead to headaches for years to come.

Another very common mistake is rushing a decision or having an unrealistic timeline for selecting a new ERP. The world of ERP is complex, and every manufacturer does things similarly but in their own way. When a potential ERP vendor takes the time to get to know you and your business practices, they should be able to show you how your pains can be addressed in their system – and not just tell you how those problems will be magically solved if you select their software package.

One of the most important criteria when searching for a new ERP solution is investigating how many times the software vendors they are considering implementing have worked with companies that have gone live and are successfully running that software in their specific industry. Selling to any and every market vertical is one thing; following through time and again on successful implementations in similar environments is another.

The phrase ‘talk is cheap’ comes to mind. Although inexpensive, stop-gap or ‘band-aid’ solutions tend to cost companies more money in the long run than what they saved by selecting a less expensive solution that wasn’t catered to their companies needs. A standalone accounting package or basic lot tracking tool is fine for awhile, but there always seems to be that breaking point where cutting corners just isn’t worth it anymore. I would recommend that anyone who is in the beginning stages of looking at ERP software to go to www.top10erp.org to be sure that they are spending time speaking to vendors who can truly provide the best value and return on investment based on their industrial experience.