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.

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 Tim Sands

ERP and “Coming of Age”

Where are you in the evolution of your company?

In my day to day work of Business Development I wade through multitudes of “suspects” on my way to finding and identifying prospects we can help.  One thing I find as I have discussions with prospects and research their situation is how software selection must have evolved over the years, how they arrived at their initial selection and what is happening now.

The start up.  More times than not, we discuss that at the time, in the beginning their company needed not much more than an accounting system and something to manage formulas, quality control, inventory would suffice and many times that ends up being excel spreadsheets.  They would plod along manually and things would go ok.

The small company. Years later due to increased volume, new regulations and enhanced risk they embarked on a software selection.  At this point often then they may get advice from outside consultants (many from the accounting world) or perhaps someone in financials in their own company – so the selection was driven from the financial side still and perhaps not manufacturing or if it was driven somewhat by manufacturing, they would search out a familiar name ERP (Enterprise Resource Planning).

The midsize. Present day they find themselves seeing their competitors catching or passing them by, often they are looking for an edge to help them improve production and manufacturing, get clearer reporting and the right system to bring them to all the next level.

The industry vertical.  At this point the customer does research and often finds that there are ERP solutions that “specialize” in one industry or another.  What does that mean?  Often, it will mean that an ERP vendor has experience and “reference able” companies in the same vertical.  The ERP vendor will also have Implementation Specialists who have experience in that vertical.  Finally the ERP vendor has proven the ability to meet the regulation requirements of that vertical, and has active user groups in that vertical.

The future.  As you go through your day to day work and are looking for an ERP partner, my advice would be to find out where you are in the evolution of your company and are you ready to choose the right ERP system for you?  If you are ready, choose an ERP solution that is in your vertical.  Check for things like: Does the ERP vendor specialize in my industry?  Has the ERP vendor proven they can meet my regulations? Can they provide me with documentation of that?  Do their implementation specialists have experience in my industry?  Can they guide me through this process?  Having awareness of all of these things should hopefully help you as you select your new ERP partner.

Resources: How to Choose an ERP for Process Manufacturers - White Paper Library

By: Rebecca Kempenich

There are some exceptionally crafty marketing tactics that can make you believe that a company has everything you need and more. But as a consumer and a professional that researches, recommends, and approves purchases, I always look to the references to see if a company really follows through with its promises. There are many guides and how-to resources out there to help provide direction on how to do your due diligence when researching complex/complicated purchases, such as ERP software for your business. ProcessPro has published a white paper on this topic:  How to Choose an ERP for Process Manufacturers. In addition to written resources, verify your research by ALWAYS seeking out current customers to find out how their experience was/is with the vendor.

Here are some of the experiences ProcessPro clients have had with ProcessPro’s product and services:

SoftwareAdvice.com

Unedited Letter of Recommendation

Client profiles

By Tim Sands

“Matchmaker, matchmaker, make me a match; find me a find, catch me a catch.”  Ok.  Maybe not everyone knows all the songs to Fiddler on the Roof like I do, but you get the gist.   Today’s topic: dating.  Not really dating in the traditional sense of the word, but dating like matching the best ERP system for your business.  In ERP selection, like in life, the cheapest date isn’t necessarily the one you want to marry.  Time to do some due diligence.  There are many types of ERP systems out there in all different sizes, shapes, colors, and styles.  Since the goal of your company is to partner with someone who fits your business  for the long haul, it’s prudent to do the homework, the vetting, if you will.  It’s better to do it right than having to repeat the whole process again in a year or two.

In my profession, I run across prospects that are looking at several different ERP solutions - as they should.  Sometimes they include systems in their search that are focused on discrete manufacturing.  Discrete, roughly defined, means things are being measured in “eaches” like nuts and bolts, shelf brackets, or roof trusses.  Systems that are designed for those types of manufacturers are much different than that of ERP systems made for process manufacturers. Discrete systems manage a simpler process and consequently are much cheaper.  Sure, discrete systems might handle the basics of standard based manufacturing, but they can’t really do what a process manufacturer needs nor solve the problems they are looking to solve.

That’s when it is important to step back and look at the real business issues and outcomes a company is looking for.  The advice I give my prospects when they are starting a project is to do their homework.  I tell them, “Whatever you do is ok with me. All I know is you will want a system intended for your industry and a solid vision that gives them a clear upgrade path, that will cause less headaches, and result in less money you’ll need to  put out on your end later.”  Isn’t that true?

That said, start with answering the basic question: What do we make?  What type of “stuff” do you make?  For example, in the inventory or manufacturing process, is there a need to convert various units of measure?  Perhaps it’s a good idea to see that the software contains tools for specific gravity conversions.  Next, there might be a need for automatic unit of measure conversion.  An ingredient may be measured in grams when making a small batch, but measured in kilos when making a large batch as an example.  The list goes on.  There are many other components to this decision and I have provided two different white papers on this topic:  Process vs. Discrete ERP software – What is the Difference?,  and Process vs. Discrete ERP software – The bottom Line.

When making a big investment like an ERP purchase, it’s imperative that you do all you can to do it right the first time.  Invest sufficient time and effort into the decision making process – including things like weeding out the cheapest date.  When you are in process manufacturing, make sure to look under the hood, shop around, get references, and find out what you are getting yourself into. Selecting a new ERP solution will likely be the largest IT decision your company will ever make as it will become the information backbone of your company. The right system will provide you and your managers with critical information about how to better manage your business and drive more dollars to your bottom line for years to come.

Attend the January Webinar: Not all Manufacturing ERPs are alike – 8 Questions to ask when searching for an ERP.

Jan 18th @ 2:00 pm CST & Jan19th @10:00 am CST  Register online.