ics costs 32%Decreased procurement costs 29%Reduced manufacturing waste 29%Lower distribution costs 14%REASONS FOR IMPLEMENTING ERPManufacturers implement ERP systems primarily to:Get a competitive advantage 71%Help service major customers 71%Replace an older system or eliminate the Y2K problem 57%The system should be complete enough to support both Discrete as well as Process manufacturing scenario's. The efficiency of an enterprise depends on the quick flow of information across the complete supply chain i.e. from the customer to manufacturers to supplier. This places demands on the ERP system to have rich functionality across all areas like sales, accounts receivable, engineering, planning, Inventory Management, Production, Purchase, accounts payable, quality management, production, distribution planning and external transportation. EDI (Electronic Data Interchange) is an important tool in speeding up communications with trading partners. The amount of inventory required to run a business effectively is always a concern. If you have too much cash flow problems can result, too little and you run the risk of poor customer service. How can you run your business effectively and still maintain a reasonable amount of inventory? The cost of carrying inventory can run 30% or more of the value of the inventory per year. $10,000,000 of inventory can cost you $3,000,000 per year for the privilege of carrying it.7 ways to reduce inventory1. Improve your data accuracy - If you don't know how much you have or where it is, it's as if it doesn't exist. The question "What is your inventory accuracy?" often gets the answer, "I don't know", "Lousy" or some low percentage. Its difficult to maintain inventory accuracy without a well designed cycle counting system. Our experience has been that a well designed and implemented cycle counting system pays for itself in a very short time. This is not merely counting things from time to time. It is a system des...
