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Supply Chain

Improve Your Supply Chain with Microsoft D365 Transportation Management
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Improve Your Supply Chain with Microsoft D365 Transportation Management
Improve Your Supply Chain with Microsoft D365 Transportation Management 700 500 Xcelpros Team

Introduction

Today, most businesses are starting to realize that managing their supply chain effectively improves customer service, reduces costs and increases profit margins. But with increased workforce challenges and constantly changing data, the logistics involved can still be complicated. For most companies, the answer is Microsoft Dynamics 365 Finance and Operations, designed to improve your business’s supply chain, transportation management and overall efficiency. With Microsoft D365, you can streamline operations, consolidate data and gain greater visibility into crucial business details that matter most, giving you more time to focus on your customers.

The importance of transportation management in any business

Transportation management is proving increasingly important for businesses of all sizes. Supply chain planning is increasingly focusing its local perspective on global strategy, so companies must keep up. For this, businesses will need access to modern tools and resources, which means looking beyond traditional processes, excel sheets and email notifications. Next-generation transportation management solutions offer the flexibility and – more importantly – scalability that businesses today need to help them grow without being hampered by outdated systems. Suppose you’re genuinely interested in moving away from an older legacy system. In that case, you want something that can go beyond your everyday operational needs, offering increased visibility of sales, distribution, and customer service departments, giving you a full-scope view of all your company’s operations.

How your business can benefit from using Microsoft D365 for transportation management

Microsoft Dynamics 365 helps businesses improve their transportation management by offering access to inventory management, customer service, and more – all in real-time. Microsoft Dynamics 365 is flexible and scalable enough for day-to-day operations to meet the demands of any size business. The transportation planning solution helps you understand where products are going and how to manage your supply chainbetter. This solution also helps you better meet customer service needs and increase sales with greater visibility on distribution, service, marketing, and more. With Dynamics 365 and the right partner, you can get up and running quickly, letting you take advantage of these features right away.

Transportation management in Microsoft D365

Microsoft has included several transportation features in Dynamics 365 that make it easy to see your fleet and track important metrics like fuel usage, mileage, driver hours, and total miles. Plus, you can always keep an eye on things like vendors and routes, as well as the status of your fleet, by tracking maintenance updates and scheduling jobs like oil changes. Information is available from any device at the click of a button, giving you the flexibility to look at things whenever and wherever you want. And because Dynamics 365 has been built to be flexible and scalable, you get full access to the benefits without worrying about limitations or overspending. When you decide on Microsoft Dynamics 365 as your transportation management system, data will be stored in one place so everything stays organized.

Figure 1: Use of Dynamics 365 with Respective Departments in Transport Management

Use of Dynamics 365 with Respective Departments in Transport Management

When it comes to planning, Dynamics helps you:

  1. 1.Plan inbound and outbound shipments more effectively with the help of D365, which provides visibility into pending orders for easier scheduling.
  2. 2.Manage costs better with detailed shipment cost reports and freight quotes for each shipment to help you find the best rates and save money.
  3. 3.Get accurate, up-to-the minute information on trucks with mobile access to the latest truck location, letting you know exactly where it is, how much gas is left, who is driving, etc., enabling you to give immediate feedback as needed to streamline business processes.

For inventory control, Dynamics gives you:

  1. 1.Real-time visibility into your inventory, with on-screen alerts if something needs attention.
  2. 2.Better forecasting thanks to more precise insights gained through analyzing historical demand patterns, weather forecasts, and other data sets.
  3. 3.More automation across sales channels including eCommerce sites so you have fewer manual transactions to manage and less risk of human error.
  4. 4.The ability to sell online without worrying about whether your back-end systems can accommodate new customers and orders coming in constantly. You’ll also get notifications via email and text message every time there’s a new order or product alert, eliminating the need for constant phone calls with vendors.

For customer service, Dynamics offers:

  1. 1.A single view of customer history so you don’t have to search between different systems trying to find what you’re looking for; saving time and making it simpler than ever before.
  2. 2.Improved customer satisfaction with proactive and reactive strategies to reach out to your customers before they reach out to you.
  3. 3.Improved billing and collections, with the ability to charge interest if payment is not received within a specified period, plus the option of adding late fees and penalty charges.

Who is it for?

Dynamics 365 is an excellent product for companies whose supply chains are critical to their business. Really, any company that manages their inventory in bulk or has a fleet of trucks and drivers on the road will benefit from using Dynamics 365.

For a company that wants to improve its transportation management, Dynamics 365 is flexible and scalable enough for day-to-day operations with greater visibility of your entire supply chain.

Dynamics 365 can be used for any business that uses transportation management in their daily operations. The flexibility of Dynamics 365 means it can grow alongside your business, so you don’t need to worry about change as your company grows. Microsoft D365 allows you to use data analytics to help make better decisions when operating your business, tracking all aspects of your supply chain by integrating with other applications like Office 365, Power BI or SharePoint Online. This lets you automate workflows and easily create reports, which helps your entire supply chain run much more efficiently.

Next Steps

The first step is to understand the basic features included in D365’s Transportation Management. This is where you need to identify your specific transportation management needs and how Microsoft D365 can help you meet them, including which modules available will work best for you – from distribution and customer service to sales and marketing. This is the perfect time to speak to your Dynamics 365 partner, who can help walk through what it will take to integrate these into your business and ensure all bases are covered.

Contact us today to find out how we can help your business grow.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

The Importance of Supply Chain Visibility for Pharmaceutical Companies
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The Importance of Supply Chain Visibility for Pharmaceutical Companies
The Importance of Supply Chain Visibility for Pharmaceutical Companies 1449 1036 Xcelpros Team

Introduction

Today, many businesses rely on the supply chain to fill their shelves with products ready to sell, and pharmaceutical companies are no exception. To provide the fastest response time possible, pharmaceutical companies must have full visibility of the products in their supply chain, from when they are manufactured until they reach the store shelf. This can be a challenge, especially as many products come from outside sources and other countries. How can supply chain visibility help your business? Read on to find out!

The Modern Supply Chain

The supply chain has become more complicated and sophisticated with pharmaceuticals being regulated. Using an efficient, reliable supply chain directly impacts customer satisfaction, cost containment, and competitive differentiation. This is because customers want consistent quality drugs that work every time they are administered to patients. Pharmacists want to give their customers the cheapest possible medication while meeting their needs.

Pharmaceutical supply chains have changed in recent times to make this happen. For example, products go through various manufacturing phases, including research and development, before becoming end products. There are also numerous checkpoints along the way that include inspections by regulators.

Manufacturers need an accurate grasp of current production costs to accurately predict new drug pricing and minimize any additional expenses associated with these phases. The supply chain needs to be flexible enough to accommodate sudden changes in demand, raw material prices, and regulatory requirements. They also need to monitor operational metrics such as fill and inventory turnover rates so that all stakeholders know what is going on.

3 of the key features that define the modern supply chain are proximity, visibility, and sustainability.

  1. 1.Proximity – Proximity means cutting out middlemen who add cost and complexity to transactions.
  2. 2.Visibility – Visibility means being able to know where every product is at any given time.
  3. 3.Sustainability – Sustainability means paying attention not only to the natural environment but also how our supply chains interact with other industries (e.g., manufacturing) as well as social issues (e.g., food security).

One of the most important aspects of a modern pharmaceutical supply chain is visibility. If it was difficult or impossible to see where products were and how fast they were moving, there would be too much room for error. That is why good tracking systems are necessary for companies in this industry. One common solution includes scanning barcodes to keep track of items, but there are other ways as well depending on each company’s needs. Some solutions allow for locating materials anywhere in a warehouse using a radio frequency identification system (RFID). An RFID reader sends out radio waves from its antennae which causes tags attached to objects within range to reflect certain frequencies, causing them to stand out against other objects not tagged with an RFID tag.

Benefits of Supply Chain Visibility

Pharmaceutical organizations have found that supply chain visibility provides several important benefits, including greater data accuracy, lower inventory costs, reduced compliance risk, and increased business agility. With the help of insights from better visibility, they can identify potential problems before they happen. With this information, pharmaceutical industries can proactively solve problems before they cause severe damage to their organization. It has even been shown that well-managed supply chains lead to higher customer satisfaction scores and product reliability.

Increasing supply chain visibility offers a wide range of benefits for organizations today, including:

  • Increased data accuracy.
  • Improved process efficiency.
  • Lower inventory costs.
  • Reduced risks associated with compliance.
  • Enhanced agility to meet the needs of changing markets quickly.

That last point may be especially critical for pharmaceutical companies given the fact they stand to incur substantial penalties if violations occur during the supply chain process. All these factors make visibility an essential component not only to reducing risks but also to success overall.

With so many benefits, improving supply chain visibility should be a top priority for any company, regardless of its size or industry. The initial investment in implementing these changes will pay off handsomely in terms of financial benefits, brand protection, and positive impacts on both customers and employees.

Improving Visibility

Companies that maintain a high level of visibility throughout their supply chain will benefit from increased safety, lower risk of errors, reduced cost, and improved customer satisfaction.

In today’s digital world, there are many ways to implement visibility measures into your business practices. This can be done through computerized systems that track inventory and orders, barcodes, radio frequency identification (RFID) tags on products, or other innovative modern technologies. These systems can not only keep you informed on the location of your products but also allow you to detect theft, tampering, or defects in packaging before they get shipped out.

A proactive approach such as this is necessary to reduce the risk of having issues with faulty goods or health and safety hazards that could affect customers. It is crucial for businesses in the pharmaceutical industry where an error may result in death, injury, or permanent disability because it is important to ensure every step has been taken to provide quality assurance along the way.

Figure 1:Steps to be taken to ensure quality in the supply chain

Steps to be taken to ensure quality in the supply chain

  1. 1.Identify customer supply chain activities – Track customer shipments as soon as they are picked up and shipped in real time. Always have visibility on what has been delivered, where it is currently located, and any delays.
  2. 2.Utilize location-based technologies – Utilize the latest in GPS technology to monitor transportation so you can track deliveries from start to finish with ease. This will give you full control of your supply chain and alert you to any discrepancies immediately instead of having to search through multiple records manually later.
  3. 3.Use big data analytics tools – Leverage automated tools that provide a complete view of all activity across every part of your supply chain.
  4. 4.Share accountability with everyone involved – Make sure that everyone who handles or touches the product throughout its life cycle knows their responsibility at every step and is held accountable if there’s a problem somewhere along the way.
  5. 5.Understand global dynamics – Achieving visibility means understanding what is happening locally and globally and how international events may affect local ones (and vice versa).
  6. 6.Keep customers informed – Be transparent about what is happening throughout the entire process by keeping customers informed about shipping schedules and any issues that arise during shipment.

Finding the Right Solution

One of the biggest challenges in managing supply chain visibility is coordinating all parties involved. Creating and executing a plan can often be complicated with multiple stakeholders, especially when crossing borders or distributing products from different geographic locations.

Various software solutions and cloud-based platforms are available to help with these challenges, but companies must choose the right technology for their needs.

The following benefits should be considered before choosing a solution:

  1. 1.A single solution that integrates data across the entire supply chain.
  2. 2.An accurate view of each vendor’s location and inventory levels.
  3. 3.Work seamlessly with one another regardless of location or platform.

When considering which solution is best for you, it is important to evaluate your company’s goals and make sure that your decision will support them.

Your business may have specific needs related to planning and forecasting, inventory management, asset tracking or other capabilities. By determining what you want to achieve through supply chain visibility, you will be better equipped to decide about which product or service fits your company’s unique situation best. In some cases, implementing an ERP (Enterprise Resource Planning) system is ideal for connecting diverse systems, tracking assets on a global scale, and organizing all activities from sales orders to invoices.

Microsoft Dynamics 365, through its a combination of big data and analytics that are continuously updated, can provide valuable insights to help pharmaceutical companies achieve more supply chain visibility by assisting with inventory tracking, forecasting, customer insights and trade spend. By having these features readily available, a business can get the real-time visibility they need to gain insight into market fluctuations and improve their order fulfillment rate.

Microsoft Dynamics 365 offers benefits in automating complex processes such as invoicing, accounting, and sales analysis.

Some of the software’s inventory management capabilities make it an efficient way to manage many aspects of supply chain visibility. It is also good for tracking inventory distribution across multiple warehouses or stores in order to gain greater supply chain visibility. Plus, Microsoft Dynamics 365 offers deep insights into customer behavior which helps track competitive offerings and measure performance success by channel. Finally, Dynamic’s manufacturing features provide details critical to maintaining safe working conditions while reducing manufacturing costs.

In addition to providing information on order fulfillment rates and logistics processes, this type of system also improves control over manufacturing process timescales and provides alerts if any disruptions occur in any part of the system.

What’s Next?

The next step for most companies should be meeting with your partner to discuss supply chain visibility. At this point, an organized and ongoing audit process must be in place so you know what needs improving and where to go next. Once a plan has been created, it should be revisited at least once a year or when processes change, or the latest information becomes available.

A third party can play a role in this continuous improvement by bringing impartiality and objectivity. Continuous improvement will keep your company ahead of evolving regulations such as GDPR (General Data Protection Regulation), which means maintaining compliance and staying ahead of potential requirements by gaining valuable insights through accurate supply chain visibility.

Better supply chain visibility will also help you identify trends that lead to additional revenue opportunities, such as inventory obsolescence or potential overproduction. For example, if your sales team told you about reduced demand for certain products and gave feedback on how to address the problem, these insights could come from supply chain visibility. Ultimately, working with the right partner to achieve greater supply chain visibility will enable your company to thrive despite external pressures or changes to industry standards. Contact us today for more information to see how we can help your business grow.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Pharma smart operations and Microsoft Dynamics 365 Finance and Operations: A perfect pair
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Pharma smart operations and Microsoft Dynamics 365 Finance and Operations: A perfect pair
Pharma smart operations and Microsoft Dynamics 365 Finance and Operations: A perfect pair 700 500 Xcelpros Team

Introduction

We see more pharmaceutical companies struggle to reorganize the available technology to maximise their operations’ efficiency.

Unfortunately, many companies need to catch up regarding their ability to use technology effectively and efficiently, especially with disparate systems in place. This can be especially dangerous considering how fast-paced these highly regulated industries can be, making it even more essential to find a plan that works well with your company’s specific goals and needs.

Innovative operations and the role of technology

Today’s pharmaceutical industry is a fast-paced, ever-changing environment emphasizing compliance and accountability. Incorporating innovative operations into your business model will save you time, money, and resources and help lower costs through increased efficiency. One of the ways this can be done is by implementing a lean manufacturing process within your company.

With the help of robotics automation, QR and barcode scanning, production data management systems, and more, companies in this highly-regulated industry can enhance and optimize their processes for maximum productivity in everything from order processing to shipping.

The Medicine Development Lifecycle is especially conducive to modern innovative operations strategies – from development through commercialization, because so many aspects of each process involve repetitive tasks that are susceptible to automation or streamlined with advanced technology.

One example of intelligent operations strategies to increase efficiency, lower costs, and increase profitability is GlaxoSmithKline (GSK). GSK has implemented lean manufacturing techniques for several years as part of its brilliant factory initiative. The goal was to make every aspect of production more efficient by reducing waste and optimizing processes throughout their facilities.

Smart operations are not just confined to pharmaceutical companies, though.

Microsoft Dynamics 365 can be used in a number of different industries, but it’s especially useful in sectors that require complex business processes and procedures.

Industry Challenges

Today, the battle for market share continues to be fierce. The constant challenges that large pharmaceutical companies face include the following:

  • Managing their complex supply chains.
  • Avoiding product recalls due to quality failures.
  • Keeping safety in check at all stages of the manufacturing process.
  • Reducing production time for new products.
  • Ensuring compliance with many regulatory authorities throughout the globe…the list goes on.

Because of these challenges—and many more—it has become increasingly difficult for these highly-regulated companies to successfully identify the need for new medicines early in development while keeping a firm grip on costs and timelines. This is precisely where innovative operations come into play.

So what can these businesses do to improve their efficiency? One key element of successful innovative operations implementation is integration between systems.

To properly track medicines and other products throughout their lifecycle, each system involved must be able to talk with all other systems engaged at every step. These companies can use advanced IT solutions like a Cloud ERP to address these challenges.

How Microsoft Dynamics 365 fits in

Microsoft Dynamics 365 for operations helps your business run smarter by integrating critical business systems. Here are some of the ways describing how Microsoft Dynamics 365 can be a natural fit with your company:

The model of intelligent operations is now an integral part of every enterprise as they look to innovate across all aspects of their businesses to maximize efficiency, maximize profitability, and accelerate growth; however, due to complex processes, there are often multiple systems used to complete an intelligent operation.

Microsoft Dynamics 365 for finance and operations helps you easily manage your finances, keep track of inventory levels, streamline your supply chain, manage projects more effectively, and much more. You can even use it to help you run clinical trials—helping you stay on top of data collection from start to finish.

As mentioned earlier, the entire industry is often under immense pressure to improve efficiency and cut costs to maximize profitability while maintaining a high level of patient care. However, these companies also need an easy way to make changes that will affect every aspect of their business – especially when undergoing rapid growth, a growing trend among companies of all sizes.

Microsoft Dynamics 365 offers you all these tools to easily streamline operations across all departments in your company, ensuring each department communicates effectively and works together towards one goal – business success.

Microsoft Dynamics 365 for finance and operations is an accounting system at its core, so it tracks how much money comes into your business and how much goes out of it daily. This data will help you determine what areas of your business are most profitable and where there might be room for improvement regarding efficiency or cutting costs.

Microsoft Dynamics 365 also offers several features specifically geared toward companies with complex supply chains, such as inventory management, order tracking, contract management, demand forecasting, production planning, etc., helping you keep everything organized from start to finish—no matter where any part of your supply chain happens to be located.

Next steps

Suppose your company wants to implement intelligent operations and partner with a tech firm with expertise in MSD operations management. The right partner can help you tailor your processes for success, guide implementation efforts to keep costs under control and provide support throughout the implementation of your new infrastructure.

In some cases, technology implementation can be accelerated by identifying internal resources that have demonstrated leadership abilities and a strong track record in operations-related roles. Partnering with an experienced operational systems partner will bring additional value to your investment by ensuring that you choose functionalities beyond what is available out of the box from your ERP provider.

Partnering with a suitable systems integrator who understands your industry can be valuable to your business. They can help make your processes smoother and navigate obstacles in your path that would typically slow you down. The result is streamlined processes that experienced, qualified professionals facilitate.

They are fast matters as much as accuracy and quality do—especially when getting new medicines approved for the market. Any delays in production or shipping could cause setbacks for clinical trials or delays in marketing approvals.

Contact us today to learn more

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Level up your supply chain
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Level up your supply chain
Level up your supply chain 700 500 Xcelpros Team

Introduction

The ongoing Covid-19 pandemic has profoundly impacted the global supply chain. While eCommerce and online retail are uniquely positioned for rapid growth in today’s business climate, companies with traditional or linear supply chain models find it harder to adapt.

Thankfully, this change has led to the emergence of advanced technologies, which provide a unique opportunity for organizations to leverage the digital supply chain network to reach new levels of operational effectiveness. This guide to digital supply chain transformation is full of helpful information for businesses looking to adapt to the new paradigm to develop their supply chain into a more collaborative model.

Understanding Digital Supply Chain Management and Supply Chain 4.0

Today, Supply Chain 4.0 refers to introducing advanced technologies, like Internet of Things (IoT), big data analytics, blockchain, AI / ML, autonomous mobile robotics (AMR), and more. These new technologies enable the reorganization of traditional supply chains into the interconnected, open supply chain operations we know as the Digital Supply Network (DSN).

This shift from sequential supply chain operations to his new digital model sets the foundation for how companies will compete in the future by integrating information from different sources and locations to:

  • Better response to changing market conditions
  • Drive production and distribution,
  • Create a digital record of the supply chain,
  • Enable advanced analytics of real-time data, and
  • Translate actions from digital inputs into physical outcomes.

Whether you consider this new supply chain model as a set of supply chain management best practices or simply a cluster of technologies to be deployed, Supply Chain 4.0 provides substantial opportunities for companies to enhance the productivity, profitability, and performance of their unique supply chain.

Supply Chain Digitization is no longer an option

According to a McKinsey Global Survey of executives, digitization of the supply chain is the largest trend affecting companies in the post-Covid environment.

“Companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years. And the share of digital or digitally enabled products in their portfolios has accelerated by a shocking seven years.”

Figure: 1Digitalization of customer interactions

Digitalization of customer interactions

When asked why their organizations did not implement changes to their supply chain before the pandemic, more than fifty percent of respondents said that supply chain digitization was not a top business priority. The Covid-19 crisis has eliminated this barrier and highlighted the need for modernization.

Executive leadership teams are now highly motivated to implement new supply chain risk mitigation strategies designed to alleviate the impact of current supply chain disruptions, as well as ant future global crises.

Consumer expectations are also on the rise: the online trend of the last several years has led to higher service expectations, and a much stronger granularization of orders. If supply chain operations want to keep up with customer service, order fulfillment, delivery, and other “value-added” tasks, more comprehensive, enterprise-wide overhauls will be required.

Want to learn more about digital supply chain management?

Let’s get started

Benefits of Modern Supply Chain Management

Modernization of supply chains enables companies to not only address changing requirements and overcome global supply challenges but also improve the overall speed, efficiency and performance of their entire operation.

Improve Proactive Decision-Making

Traditional supply chains utilize top-down management and communication for merchants and vendors alike. Distributors looking to grow their product lines tend to focus on reconciliation, monitoring, and reporting defects, delays, or other types of disruptions early on in the supply chain cycle.

Monitoring tools, modern ERPs, and other digital solutions help companies make better proactive decisions that increase efficiency, remove waste, and keep operations running smoothly.

Increase Agility and Avoid Disruption

The Covid-19 pandemic proved that flexible supply chains are susceptible to unpredictable economic changes, natural disasters, and political pressure. Digitizing your supply chains provides excellent supplier diversification and makes it easier to enact sourcing changes, especially during hard times.

Create a More Resilient Supply Chain

The most resilient supply chains are built on a solid foundation of transparency and efficiency that enables them to scale and adjust as circumstances change. This flexibility provides greater freedom for businesses when onboarding new suppliers, particularly in new industries or geographies. Resilient supply chains also help organizations better respond to changing demand, launch new product lines or roll out support to additional regions.

Digital Supply Chain Tips: How to Build a Digital Supply Chain

Creating a modern supply chain is an enormous undertaking. Still, this article will help prepare you for your digital transformation and make integrating advanced technology easier for everyone involved in the process.

Define Your Vision

Start with a clear vision that aligns with your enterprise goals. These goals should be related to specific business objectives, and include things like:

  • Improved supply chain visibility,
  • Better and faster decision-making,
  • Automated operations, and
  • Integrated customer engagement.

Assess Existing Resources

The next step in digital transformation is identifying the things you need to achieve your goals. The best way to identify those capabilities is to scrutinize your existing resources alongside the new technologies that might replace them. Ask yourself the following questions.

  • Data collection and analysis – Can data be accessed quickly and used to draw actionable insights?
  • Legacy systems – Will existing systems support your new goals? Is the technology aligned with business objectives? Are these digital solutions best suited to achieve the desired outcomes?
  • Workforce skills – Does your workforce have the skills to work with and adapt to the new business model?

Utilize Data and Analytics

In a modern digital network, supply chain professionals can rely on real-time data to make informed decisions and collaborate effectively with suppliers, partners, and more. Access to real-time data also enhances visibility across the supply chain and helps supply chain managers identify potential disruptions before they happen.

Final Thoughts

Moving towards a more modern supply chain will become more and more critical to capturing new markets in the future. Developing your supply chain into a flexible, open, agile and collaborative digital model requires an enterprise-wide approach, careful planning, and close collaboration with internal teams and partners.

Need help with legacy solutions and ageing customizations. Implementing modern enterprise resource planning software like Microsoft Dynamics 365 Supply Chain Management can help you achieve a 360-degree view of your supply chain, better anticipate potential disruption to your operation, and adjust before it becomes a problem.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Customizations and Configurations in the Microsoft Dynamics 365 ERP
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Customizations and Configurations in the Microsoft Dynamics 365 ERP
Customizations and Configurations in the Microsoft Dynamics 365 ERP 700 500 Xcelpros Team

Introduction

You have your eyes set on an Enterprise Resource Planning solution and want to jump into the implementation phase without delay, but do you know what will be necessary to make that happen? Dynamics 365 customizations can help ensure your ERP solution meets your needs precisely and enables you to get the most value out of your investment in the software.

Here are some standard customizations to consider when implementing Microsoft Dynamics 365 Finance or Supply Chain Management Enterprise Resource Planning solutions. What are common customizations? Why do companies customize their ERP implementation?

Should you customize your ERP?

While customization is technically possible with any enterprise software, it’s best to customize what you need. That’s because each customization is an additional layer of work that can cause things to go awry down the road. This doesn’t mean your new ERP will run without a hitch—but it should mean fewer and less problematic hiccups in implementation and usage over time.

If you are considering customizing, consider some important questions first: Will your customizations be well-supported by your vendor? What kinds of training do they offer? Are there customizable modules available for what you want to do? Should you customize you ERP?

You may have good reason to customise if one of your goals is streamlining business processes or integrating disparate data sources. It all depends on what you’re trying to accomplish and how far along you are in your overall project lifecycle.

In general, though, you don’t rush into customization just yet. Plan out how it’ll fit into your end goals before diving into development or taking on a project manager.

How to start exploring customization options

Microsoft recommends that the best approach to understanding what customizations exist for Microsoft Dynamics 365 is to begin by creating a customization request on the Dynamics Marketplace. The Dynamics Marketplace offers organizations pre-built or partially built business solutions, known as applications for Dynamics 365 for Finance and Operations. Microsoft applications on the marketplace allow organizations to quickly get started with an out-of-the-box solution that can be customized to meet their specific business needs. They also offer organizations a way to familiarize themselves with how other customers have customized and extended Microsoft’s standard applications.

These samples can provide a good starting point, making it easier for new customers to identify opportunities to extend the capabilities of their implementations. For example, if you want to know how your customer could extend Microsoft’s standard application functionality, start with their existing sample apps. If you’re going to learn how they could leverage PowerApps or Flow to create more dynamic forms in real-time using the line of business data, check out sample apps developed by partners. When exploring these samples, remember that they may not fit your specific requirements but are valuable sources of information about additional functionality available from third parties that can augment your implementation project.

Microsoft D365 customization and configurability examples

An excellent example of ERP customization is the configuration of Microsoft D365 Finance or Supply Chain Management (SCM) so that only particular users can access everything in your system. In contrast, other users only see their specific parts. You can even create a separate security model for internal versus external use. This granular configuration means you’re not dealing with dozens of different user interfaces—you have one. Still, depending on your level of access, you see only specific tabs, pages, and menus. Since everyone sees what they need to know, it’s easier for everyone to work together.

Let’s Know more about the Customizations and Configurations in the Microsoft Dynamics 365 ERP.

Yes, Let’s start

Some of the more common examples of D365 customization include:

Adding more functional modules

Dynamics 365 comprises numerous modules, each with its specific function. Organizations can easily offer users significantly increased functionality by allowing them access to different modules simultaneously.

Adding additional Fields

Often, based on the specific data your organization needs to collect, more than standard forms within D365 may be required. For this reason, Microsoft added the ability for Sysadmins and Power Users to include custom fields through the workspace personalization options. These supported field types are the easiest way to allow users to track additional data and can consist of, Text, Numbers, Decimals, Date/ Time, Date, Picklist, and Checkboxes.

Customizing workspaces

Users also can create their workspace with different functionality than out-of-the-box modules. Users can add Live tiles, Lists, Power BI tiles, and Links. This can result in a very focused workspace that lets users complete their job more efficiently.

Adding custom reports

Creating custom reports saves companies significant money during an implementation project. Microsoft’s D365 gives users several different ways to create custom reports. This includes simple Filtered views that can be exported to Microsoft Excel, the Report Wizard that asks the users simple questions before generating a statement, and SSRS for creating more complex reports.

Microsoft’s AppSource

Microsoft’s AppSource allows you to explore and try approved D365 extensions designed to add specific functionality or seamlessly tie in other third-party software solutions your business requires.

Custom solutions

Even in the same industry, business models can vary wildly from one company to another – For requirements that can’t be met by existing solutions available in Microsoft’s AppSource, customers can work directly with partners that have experience developing complex business solutions.

Self-service functionality

Companies can take advantage of increasingly valuable tools like Microsoft Flow, and the Microsoft Power Platform to help develop one-of-a-kind processes and integrations for whatever solution needs it most. These tools are some of the best ways to make your solution fit your specific requirements.

Final Thoughts on D365 Customization

Should you customize ERP? Yes. Of course, you should. Because the real question is, what customizations do you need to make your solution work best for your organization? Organizations that choose to implement Microsoft Dynamics 365 often know they will need to customize the software, but don’t always have a clear idea of how to approach it—they want to maintain standard functionality and ensure their data remains accurate as possible. The best way to go about customization is to understand why organizations are customizing in the first place.

While ERP comes with a lot of built-in functionality, that’s not to say you shouldn’t consider customizing it to fit your organization. ERP implementations are rarely perfect and require various organisational modifications to function correctly and integrate seamlessly. You might customize for various reasons—for example, if you’re using multiple ERP solutions or have different business units with unique needs—but one thing is for sure: customizing your implementation can save you time and money.

Whether you’re dealing with manufacturing companies, retailers, wholesalers or logistics companies, there are sure to be some everyday things to consider when customizing your new software implementation.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Streamlining Operations in an Automotive Company
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Streamlining Operations in an Automotive Company
Streamlining Operations in an Automotive Company 700 500 Xcelpros Team

By the Numbers

  • 10.5 millionThe projected sales of fully electric and electric/gas hybrid passenger vehicles in 2022 worldwide. China accounts for nearly 6 million followed by Europe at 30 percent with the U.S. in third.
  • 6.5 million and less than 4 millionThe number of these vehicles sold in 2021 and 2020.
  • 75 percentThe anticipated increase in zero emissions delivery van and truck sales in 2022.
  • 2000,000The production cap per manufacturer for a full $7,500 credit per vehicle. As of Jan. 19, Tesla and GM had already hit it. Toyota, Ford and possibly Nissan may also reach the cap this year.
  • Less than 1 millionThe total number of electric passenger vehicles sold worldwide in 2015.

Introduction

Automobile manufacturers and the thousands of people who supply and service them daily are amid three simultaneous revolutions. Each one of these revolutions by itself is set to be a significant disruptor. Managing them all together will require even established companies to rethink how they do their business. Even incremental improvements to efficiency will be paramount to success.

These growing revolutions include:

  1. 1.The rise of Electric cars
  2. 2.The development of autonomous and connected vehicles
  3. 3.The growth of Digital mobility

The rapid adoption and sales of electric vehicles will only increase as gasoline prices continue to rise, thanks partly to the ongoing Russia-Ukraine conflict in 2022.

As computer controls become increasingly commonplace—backup cameras, for example, have been a required safety feature in all new American-made cars since May 1, 2018—computerized versions are replacing mechanical linkages and parts.

A 2019 study by the Insurance Institute for Highway Safety (IIHS) concluded that while ‘rear cameras alone reduced collision rates by only 5 percent, combining a camera with rear parking sensors reduced the backup collision rate by 42 percent, and adding automatic rear braking to the camera and parking sensors lowered the collision rate by 78 percent.Hagerty stated

These autonomous controls are now becoming commonplace. One study shows backup cameras in the Honda Fit LX. Its base model had a list price of $16,190 in August, 2020.

So what do these numbers mean for companies in the automotive industry, especially operations managers?

They mean the former way of running a shop isn’t going to cut it any longer.

Diversifying the Supply Chain

Improving operations management in the automotive industry requires focusing on ways to streamline operations and improve efficiency. A critical area is supply chain management. Today, that means building a supply chain that looks radically different than it did ten years ago.

Ongoing supply chain nightmares leftover from Covid-19 still impact every industry, including consumer electronics. These days that includes cars, not just computers.

Quoting a U.S. Department of Commerce study, the median inventory of computer chips consumers held, including automakers, fell from 40 days in 2019 to less than 5 in 2021.

“If a COVID outbreak, a natural disaster or political instability disrupts a foreign semiconductor facility for even just a few weeks, it has the potential to shut down a manufacturing facility in the US, putting American workers and their families at risk,” the report noted, a danger that isn’t lost on car companies,” Cnet states.

The ramifications, especially for electric car manufacturers, means an inability to meet demands. Projected shortfalls for some major automakers, in large part due to the chip shortage, include:

  • 1.25 million vehicles: Ford’s shortfall last year
  • 1.15 million vehicles: Volkswagen’s shortfall
  • 1.1 million vehicles: the shortfalls for GM and Toyota

Relying on a single supplier or vendor for a key part is no longer viable. Car manufacturers need a supply chain that is robust and has alternative suppliers for all critical parts, including computer chips.

Lacking critical parts in any industry, not just the automotive, can put the brakes on production.

Learn how you can streamline the operations of an automotive company

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The Car Manufacturing Process

The car manufacturing process includes stamping sheet metal components for each vehicle’s side frames, doors, hood, and roof. A gasoline vehicle’s engine, transmission, and gearbox are key pre-assembled components. In an electric car, they are much simpler motors.

The Tesla Model 3 electric cars use one or two centrally-mounted drive units. Each drive unit has a three-phase electric motor, inverter electronics, reduction gears and open differential that drives a pair of wheels in a simple arrangement. Vehicles with two drive units have one in front and one in back, providing all-wheel drive. Tesla’s Model S/X Plaid uses three traction motors: one for the front and one for each rear wheel.

These differences can cause logistical headaches for automotive supply chain, warehouse, and vendor managers, especially when using individual software packages.

Automation in Automobile Manufacturing

“There is very little in the assembly line or supply chain that is not fully optimized, and even less left to gain,” one business insider states when speaking about automating the automobile industry.

According to this article, U.S. automakers buy one of every two industrial robots sold globally. The robots handle everything from welding to assembly and painting on the production floor. Their computerized “cousins” are also common in sales, handling customer queries in finance company call centers, scheduling service appointments, sending alerts and running diagnostics.

All of this automation consumes and creates one product: data. “A self-driven car produces about 1 GB of data per second,” this article states.

Managers do their best trying to make sense of this information to ensure their supply chain delivers what is needed, when and to the right location. They are also responding to inquiries from sales, letting warehouse managers know what products are coming in and going out.

The only effective way to manage this deluge of data is by working with a supply chain management software product designed from the ground up for data integration.

Using Software for Data Integration

Modular software designed with data integration reduces bottlenecks and speeds decision-making. How? By taking information from multiple points—the inventory of computer chips in the warehouse, the number of outstanding electric vehicle orders, vendor deals on a specific paint color, the number of available skilled technicians for key assembly steps—and presenting it as a uniform whole.

A modular, secure cloud-based system can provide insights to business leaders by processing information in close to real-time. It can help explain where supply meets demand. What key components are critically low in store, and which are adequately stocked?

Using technology tied to these modular software components prevents automobile decision-makers from pushing products they can’t produce while letting them use business intelligence to respond to changing demands.

Final Thoughts

The days of car makers cranking out gas-guzzling giants are already over. Electric vehicles are quickly becoming the new kings of the road. Taking advantage of the new technology requires stepping up your supply chain management software so you can respond to change when it happens.

A modern, modular enterprise resource planning (ERP) package has more than enough under the hood to help your automotive-related company keep running smoothly.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Handling Different Types of Purchase Orders in Microsoft Dynamics 365
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Handling Different Types of Purchase Orders in Microsoft Dynamics 365
Handling Different Types of Purchase Orders in Microsoft Dynamics 365 700 500 Xcelpros Team

By the Numbers

  • $35.88: The minimum cost of a PO according to APCQ.
  • $506.52: The estimated maximum cost of a manual purchase order according to APCQ.
  • $53-$741: The average cost range of POs according to CAPS Research.
  • $60,000: APCQ’s estimated annual cost associated with manually producing purchase orders.

POs and the departments that approve them

  • 8%: No approval required
  • 21%: Finance
  • 52%: Budget owners
  • 84%: Supply management

Introduction

Today, purchase orders (POs) are the lifeblood of all companies, especially manufacturers. Being able to use POs properly helps in several different ways, including:

  1. 1.Simplifying the ordering process, making it easy to find approved items and place orders.
  2. 2.Aiding in budgeting by helping you determine how much you need to spend and how much you need to sell.
  3. 3.Enabling accurate planning by providing insights into company performance.
  4. 4.Warning of unexpected expenses when a PO is submitted, providing time to research it.
  5. 5.Confirming the quantity and price of goods bought or sold, eliminating miscommunication.
  6. 6.Providing legal protection against errors in quantities or unexpected price increases.
  7. 7.Controlling spending by limiting who can place and approve POs.
  8. 8.Tracking spending by providing details into where your money goes.
  9. 9.Helping manage vendors by seeing who delivers on time at the agreed price and who is late or constantly complaining.
  10. 10.Improving inventory management by telling you what should be arriving compared to what actually arrives.

Types of Purchase Orders

Most POs used today typically fall into one of four types. An automated purchase order system helps manage each of these types of POs.

1.Standard Used for one-time orders such as office furniture.

2.Planned purchase orders (PPOs)Typically lacking a delivery date and location, they are used for restocking items at irregular intervals.

3.Blanket purchase orders (BPOs), also known as “standing orders.”While similar to PPOs, they lack the known quantity and have uncertain delivery dates. Vendors may place limits on amounts so they can deliver.

4.Contract purchase ordersThey are used to set the terms and conditions for future purchase orders. Their primary function is ensuring a smooth ordering process.

The Disadvantage of Manual Purchase Order Systems

The job of a purchase order automation system is to send each PO to the appropriate staff member for review and approval. These systems leverage existing purchasing processes and rules to perform their jobs while protecting your business at the same time.

Modern automated systems often counter significant issues associated with older manual PO processes.

Figure: 1Disadvantages of an Manual PO System

Disadvantages of an Manual PO System

Compared to modern, automated systems, manually created POs tend to suffer from a number of drawbacks, including the following:

  1. 1.They’re less efficient
  2. 2.They’re paper heavy
  3. 3.They lack accountability
  4. 4.They open the company to security risks
  5. 5.They lack process regulation
  6. 6.They’re often time intensive

Using an automated system for POs in place of any older, manual processes results in a number of benefits, regardless of a company’s size:

  • Increased cost savings
  • Reduced human input error
  • More visibility into the PO process
  • Increased flexibility and control

Most importantly:

  • Improved process efficiency

Improving process efficiency is usually overlooked in a businesses day-to-day affairs, but this boost to efficiency is huge and provides a number of key benefits, including:

  • Significantly reducing the time between orders being placed and shipped.

And

  • Providing a verifiable audit trail so a manager wanting to know the status of a requested item can get a real-time view of the order. If a discrepancy occurs, the PO provides a written record.

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Benefits of a Modern PO Management System

According to a recent Altametrics blog, purchase order management “is an in-house procurement process implemented by businesses to ensure that every purchase is required, accounted for, and augmented for costs. The purpose is to ensure workers follow all policies and procedures before fulfilling a purchase order.”

Using a modern automated PO management system ensures that all orders are created, approved, and dispatched according to current policies and procedures set in place by the organization. These systems exist to ensure that your company has complete control of its purchasing and can make quick adjustments in the event of an emergency.

Once generated, these purchase orders are considered a binding contract

  • Company A agrees to pay the stated price for the listed items upon delivery from Company B.
  • Company B agrees to provide the goods on time, and at the agreed-upon price, terms and conditions.

If any mistakes are realized, a modern PO management system provides a streamlined way to quickly resolve any discrepancies.

Properly managed POs:

  • Eliminate overpayments
  • Reduce damaged goods
  • Save time
  • Eliminate inefficiencies

Modern PO management systems start by examining a company’s current methods to identify bottlenecks and ways to improve efficiency. These systems can strictly adhere to existing procurement policies and procedures using simple guidelines. This enables shop floor workers to make requests converted into accurate POs.

PO management systems also help to organize existing information. For example, they can create a real-time vendor management database showing which companies are approved. This lets buyers know who they can deal with to get what they need and when.

Another tangible benefit is the ability for workers to track the status of any current POs directly. Instead of having someone else take time away from their duties to provide an update, workers can quickly log into the system and find out themselves.

The best PO management systems make it easy to create and track POs and share the information seamlessly with other departments when included as part of an overall Enterprise Resource Planning (ERP) solution.

Procurement and Dynamics 365 Supply Chain Management

One of our favorite ERP solutions is Microsoft’s Dynamics 365, a modular ERP system that includes asset management and procurement functions in its Supply Chain Management module.

Located in the Asset Management > Common > Procurement > Work order purchase requisition section, this software shows a list of purchase orders related to work orders. It also shows how the purchased goods are used for assets, maintenance jobs, spare parts, and work orders.

This module can be configured to indicate any potential delays. The system can generate notifications giving management teams different options to resolve the issue

  • Wait out the delay or
  • Find an alternate supplier.

As well, work orders, job orders and purchase orders can all be tied to each other through the Supply Chain Management module. The end result is visibility:

  • Purchasing knows what items are in the pipeline,
  • The warehouse knows what is coming,
  • Production knows when the materials it needs will arrive, and
  • Sales knows when customers can expect delivery of their finished goods.

Note: Click here to see how to create a purchase order in Dynamics 365 Supply Chain Management.

Dynamics 365’s Supply Chain Management module also lets you control other aspects of the purchase order process. It provides a number of critical business functions, including creating purchasing policies, product receipts and invoices, and more. More than just a PO management program, Supply Chain Management also has direct ties to rebates, production controls, service management, transportation, warehousing plus sales and marketing.

By providing everything from an overhead view of your entire supply chain to the status of an individual PO, Supply Chain management provides companies of any size with the information they need to control their inventory.

The Bottom Line

Purchase orders continue to be an integral part of all businesses. Continuing to enter this data manually—and trying to keep track of it all on paper—makes the process cumbersome and prone to mistakes and expensive errors.

An automated PO management system, like that included in Microsoft’s Dynamics 365 solutions, helps reduce the number of manual inputs, ensures only permitted vendors are used, and simplifies the approval process, even automatically approving smaller purchases, debiting them to a department’s budget, or forwarding them to the correct department for approval.

Connecting this PO management system to your overall inventory control system is one of the best ways to ensure you always have the right materials on hand to meet your production and sales goals.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Best techniques for tracking and managing raw materials
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Best techniques for tracking and managing raw materials
Best techniques for tracking and managing raw materials 700 500 Xcelpros Team

At a Glance

  • 18% – The hike in the Raw Material Price Index from 2020-2021 with at least another 10% hike expected.
  • 60% – The increased amount of raw materials extracted, harvested and consumed since 1980.
  • 117% – The increase in raw materials costs for non-food agricultural materials since 2000.
  • 359% – The cost increase in rubber since 2000.
  • 62 billion metric tons – The amount of raw materials used per year in 2008, an 8-fold increase since the early 1900s.

Introduction

Today, manufacturing relies heavily on the ability to acquire raw materials, both directly and indirectly. Examples of direct raw materials are the chemicals, textiles, minerals and other components that become finished products. Indirect raw materials are components added to other parts that together make a finished product. Accurate tracking of these materials is a good way to determine if a company flourishes or fails. Both of these material types are listed as current assets.

Tracking raw materials typically starts when they enter a warehouse. Their value is calculated from the start of a given time and adding costs such as storage, shipping, processing and labor to determine total value. Before you can build, mix or blend your products though, you have be sure to acquire them. Obtaining the essential materials you need to create your products is the end result of an involved process.

Obtaining Raw Materials

One of the first things to do before you start acquiring raw materials for your products is sufficient planning. Raw material planning can be used to determine how quickly you use each item, but only once you understand your inventory turnover rate – the number of times you use your raw materials.

In a previous post, we stated that “Materials planning is the method used to determine the requirements and quantities of raw materials to implement production.” If you don’t have enough raw materials on hand, you can add delays to your production schedule, or even lose orders altogether. If you keep too many materials on hand, there may not be enough budget available for other projects, like capital improvements.

A critical part of materials planning is understanding lead time: how far in advance do you need to place orders with your suppliers to get what you need in order to satisfy your customers?

Being sure you can order what you need requires a procurement management plan that, “defines requirements for a particular project and lays down the steps required to get into the final contract,” including raw materials.

This plan sets and defines everything you need to manufacture your products: what to buy, who to buy it from and how much you’ll pay. This includes determining purchase costs plus delivery and storage costs, also referred to as inventory costs. Placing an order, or receiving one from a customer, often uses an order management plan.

If your departments are unable to report how much of a given product, or the raw materials required in the process, are on hand, entire orders can be lost. When production tells sales one thing, but inventory says something else, the end result can be chaos. This is where accurate, frequent, communication that tracks the flow of raw materials through the entire acquisition process becomes critical.

Inventory Management

“Inventory management is important to small businesses because it helps them prevent stockouts, manage multiple locations and ensure accurate recordkeeping. An inventory solution makes these processes easier than trying to do them all manually.”

A chef can make a large salad using a full head of lettuce but only a teaspoon of spices. Managing inventory is often similar: A manufacturer is likely to have some items they use in large quantities, such as active pharmaceutical ingredients (APIs). Equally important are the catalysts and other chemicals bought in much smaller lots. Like a chef making a salad, without their ingredients, they don’t have a product.

Inventory management not only tracks what you have on hand, it also looks at your supply chain: making sure you have options for getting what you need when you need it. One part of inventory management is getting your basic supplies: making sure your customers receive their finished products when they need them is another. Having viable shipping options to ensure your merchandise arrives on time means gathering even more information and constantly updating your options. A common option used by a large number of companies, especially retailers, is vendor managed inventory.

Start tracking and managing raw materials efficiently, schedule a consultation with Xcelpros.

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Vendor Managed Inventory

Commonly referred to as VMI, vendor managed inventory is when a company lets its suppliers determine the amount of product a company has in stock. If you walk into a grocery store you might see people who are not market employees stocking shelves. These are vendors – these employees track inventories, place orders, monitor shipments and stock shelves.

According to American Express, benefits of a VMI include:

Figure: 1Benefits of Vendor Management Inventory

Example of a Barcode

  • Improved efficiency You have the right quantities on hand to meet your needs without going overboard and having too much or too little.
  • Cost reduction Having accurate inventories means few if any disruptions to sales, thereby providing better customer service.
  • Reduced complexity Depending on your products, you may be able to reduce the number of vendors. The result is a predictable and reliable inventory schedule.
  • Data insights Your supplier can anticipate demand, helping you prepare for seasonal and market-driven trends.

Working with a single VMI has some negatives as well as positives. Three of the biggest challenges, according to AmEx, include:

  • Loss of control Someone else determines what products you have and therefore what you’re able to sell. Using a VMI also means an outside company has access to your private data. Data security can be a major issue, especially when you first start working with a vendor.
  • Limited options It’s tough to make a fruit salad when the only fruit available is an orange. Your product choices may be limited and you might become dissatisfied if your vendor fails to deliver at the best price.
  • Market agility Working with a single vendor reduces your ability to pivot when markets change. For example, some whiskey manufacturers were having problems selling their goods when the Covid-19 pandemic took hold. A few of the more enterprising companies were able to switch from making whiskey to producing alcohol-based hand sanitizer. Using a VMI might eliminate this flexibility to quickly change in response to market conditions.

Looking at your options and picking the best ones often comes down to software. Managing your raw materials and inventory accurately, especially when your company is growing and has distant suppliers, generates a lot of data. Managing this vast amount of data requires capable software.

Software Options

Depending on your needs, two types of software can help with your raw materials management, inventory management, order management, procurement management, stock management and resource planning needs:

  1. 1.Customized products designed to perform a specific function for a single industry with a company at a particular size. If your company is unlikely to grow, one or more of these products might be perfect for your needs. Using this type of software, you will likely need one product for each requirement. This is likely to mean using several different providers, potentially creating data exchange roadblocks. A second option offers greater flexibility, the option to handle many of these needs in a single package while also growing with you.
  2. 2. A modular Enterprise Resource Planning (ERP) product such as Microsoft Dynamics 365 Supply Chain Management is a large, versatile product capable of helping you track inventories from far-flung suppliers into, through and out of your warehouse. Microsoft Dynamics products are based in the cloud and offer added data security since they’re built on Microsoft’s Azure platform. Modular systems let you add sections when needed while maintaining constant communication between the modules. Using a system from the same company also ensures constant data flows, reducing inventory data errors.

The Bottom Line

Especially today, managing raw materials accurately requires a lot of work and attention to detail. Errors at any stage of the process – from ordering to shipping, storing or using – can result in expensive repercussions.

Finding the right software solution means evaluating your current and future inventory needs. What do you need now? Will solving today’s problem also work in 1-5 years or will it require an expensive overhaul?

The bottom line is that you should consider an investment in a modular product that can grow with your company over time, and not one that becomes obsolete the minute you expand.

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

streamlining-the-label-management-process
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Streamlining the Label Management Process
Streamlining the Label Management Process 700 500 Xcelpros Team

At a Glance

  • $10 million: The average cost of recalls to food companies that can are caused in part by inaccurate labels.
  • $65,000: The average cost of incorrect labeling based on a 2020 survey. Of that group, 61 percent said mislabeling costs exceeded $50,000.
  • 10-26%: The number of products mislabeled every year according to a survey of 300 IT directors in the U.S., UK, France and Germany.

Introduction

Labels serve three primary purposes in a consumer’s eyes. Labels help to:

  1. 1.Identify the contents of a product
  2. 2.Identify the product name
  3. 3.Promote the brand image

In combination with well-designed packaging, certain label parts could be considered one component of an effective marketing campaign. From a business perspective, though, labels need to do much more than tell consumers what is inside. Efficiently labeling and tracking is the best way to monitor a product’s performance, along with ensuring customer safety is the best it can be. This is especially true when it comes to certain industries like pharmaceuticals.

Packaging and Labeling

There are many key points to note when it comes to packaging and labeling, including the following:

Definition:

Labeling refers to the text, design, symbol, logo, instructions and use suggestions printed on the product package. Labels are designed to inform and attract customers by providing information.

Objective:

Labeling provides all information required by the governments in the geographical location where the product is marketed, sold and used.

Focus:

While exterior packaging is about appearance, labeling focuses on what’s inside. For example, products are required to accurately list the primary ingredients and their nutritional value when it comes to food. Labels on medicines must include active and inactive ingredients, allergic reactions, and harmful side effects.

Label designs are usually simple and formal. They may follow a government or company template. These can require a set list of data fields such as country of manufacture and expiration or “use by” date. Hazard information is typically posted where a customer can see it before making a purchase.

Effective label designs also include inventory tracking options while also meeting government requirements.

Inventory Tag Controls

“When paired with a competent asset or warehouse management system, inventory tags can be scanned to inform your supply chain of changes in your current inventory. This practice helps build end-to-end visibility among all parties, from supplier to customer, as your inventory moves through your warehouse,” according to a blog post by CamCode.

Inventory tags can be integrated into a product’s label design. The most common inventory labels we see doing this are bar codes. Barcode are a series of vertical lines—generally black—of varying widths interspersed with white gaps. QR (i.e., quick response) codes are a form of bar code generally in a square or rectangular format with black blocks and white spaces.

Speed is the main advantage of using a barcode or QR code label. Handheld and machine scanners can read the barcode information, sending it to inventory tracking software. That software can then automatically update inventory counts, eliminating the need for manual checks. The result is a fast, more accurate inventory update. A critical part of inventory tagging with barcodes is using the right type. Before creating any labels, companies should ensure they understand any regulatory or equipment-based requirements for the barcode type, label size, and label material type.

Figure: 1Components of a Barcode

Example of a Barcode

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Different Types of Barcodes

Barcodes primarily come in three different types:

  • Numeric only with a row of numbers beneath the bars
  • Alpha-numeric with a row of letters and numbers
  • Two-dimensional (QR is one example) using a series of small dots arranged in a unique pattern

The type of barcode a company chooses often depends on its industry and how the product will be used. For example, the Postnet format encodes destination information using long and short lines. Retail items often use the Universal Product Code (UPC).

The U.S. Food and Drug Administration (FDA) has several requirements for barcodes. While the FDA does not require a specific code format, it mandates the barcode include the drug’s national drug code (NDC) number. Machine-readable information on blood and blood components must be on those labels.

“This new system is intended to help reduce the number of medication errors that occur in hospitals and health care settings,” according to the FDA.

These FDA rules apply to manufacturers, repackers, labelers, and private label distributors of human prescription drug products, biological products, and over-the-counter (OTC) drug products to protect consumers from dangerous side effects or worse.

Labels alone are not enough. However, companies need to be able to accurately track their inventory as well as safely manage any recalls or other issues with products. This only works when you have the right software in place.

Inventory Tracking Software

Software like Microsoft Dynamics 365’s Supply Chain Management includes several powerful inventory management features helping these businesses thrive today. For example, Supply Chain Management can automatically assign serial numbers based on manually entered (or scanned) batch numbers.

Dynamics 365 Supply Chain Management also makes creating and tracking barcodes for released products easy. This modern inventory management software also works with the GS1 bar code and QR formats for use on shipping labels.

Microsoft says, “Unlike older bar codes, GS1 bar codes can have multiple data elements. Therefore, a single bar code scan can capture several types of product information, such as the batch and the expiration date.”

With a system like Microsoft’s Dynamics 365 Supply Chain Management, you can use a predefined list of application identifiers to define the meaning of your data and connect it with GS1 codes. Microsoft suggests, “The setup of the application identifiers defines how the system should interpret a bar code and save it as a value in the system.”

The Bottom Line

With today’s focus on consumer safety, proper labeling and tracking of products, especially when it comes to pharmaceuticals and medicine, will continue to be of utmost importance, including efficiently dealing with government regulations. Today’s businesses need to ensure they’re taking advantage of inventory tracking software that lets them easily create labels that help track the flow of raw materials, from work in progress to finished goods.

Programs like Microsoft Dynamics 365 Supply Chain Management can create unique QR codes that contain a list of ingredients, allergy information, serial and batch numbers, hazardous warnings, and safety data sheets. Solutions like these let your warehouse staff scan products and send information wirelessly to any device on the network more efficiently than ever before. Is your labeling solution up to speed?

About XcelPros

XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

Effectively-Tracking-and-Controlling-Inventory
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Effectively Tracking and Controlling Inventory
Effectively Tracking and Controlling Inventory 700 500 Xcelpros Team

Introduction to effective inventory management

Especially today, manufacturers, wholesalers and retail businesses from several different industries share several standard business practices, with inventory management at the top of the list.

An efficient, capable inventory management system can distinguish between struggle and success. Any boost to the efficiency of managing your inventory can result in a significant return on investment. To drive the effectiveness of your inventory management, especially when if you’re just getting started, it helps to pay attention to 10 popular techniques:

1.Fine-tune your forecasting Accurate forecasting is a must unless you want to either tie up precious capital in product stuck on warehouse shelves or be unable to meet your customers’ orders.

2.Identify low-turn stock Have a flexible ordering approach that, combined with accurate forecasting, lets to adjust inventory based on customer priorities.

3.Regularly audit your inventory Knowing—not guessing—what you have at any given moment lets you adjust ordering to ensure a balanced inventory.

4.Track stock levels You want to track all inventory from the moment you purchase raw materials or components to when you deliver finished goods to your customer’s door.

5.Keep track of your equipment Especially in a production plant – Knowing what you have, how quickly it wears and when to schedule repairs for optimal life ensures uninterrupted production runs.

6.Verify Quality Ensure all items in your inventory meet your quality control standards, ideally from the moment they arrive.

7.Categorize inventory based on customers needs Ensure you have the most sought-after products in stock at all times, working your way down the line to the least popular products.

8.Consider drop shipping This is much quicker especially for any items you don’t make yourself, especially when it becomes part of your product. An example is a Siemens ® controller for industrial machinery.

9.Rotate your stockTurn your stock so the oldest items are sold first This is especially true for pharmaceutical products with comparatively short shelf lives.

10. Use good inventory management software A viable program that meshes with your financial and sales software helps keep everyone informed, making for happier customers.

Get a consultation on how to track and control inventory in the warehouse.

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Figure 1:Common inventory management challenges

Common inventory management challenges

Common Inventory Management Challenges

Among the most common inventory management challenges that can affect a number of different businesses are the following:

  • Inconsistent tracking Working with older software that relies on manual data entry opens a company to data entry errors. Mistakes are bound to happen when different departments use different spreadsheets to input the same information.
  • Inaccurate data Companies need to know how much of everything they have on hand and in the pipeline. Without accurate information, you won’t be able to track your production. This can be a massive problem if you’re still manually entering data.
  • Order management Manufacturers often live on the edge of logistics, struggling to make sure deliveries are going out just in time – right before their customers need them.
  • Juggling a complex supply chain Manufacturers need alternate ways of obtaining raw materials and shipping finished products. For example, your primary port is running behind because dock workers are sick. How do you get what you need when you need it?
  • Communications and planning Intercompany communication is critical, especially in a world where companies often have business units in different countries, keeping everyone focused on the same task can be difficult.
  • Robust competition In every industry, competition is ready and willing to grab your customers when you make a mistake or find yourself unable to deliver on time and within budget.

These are a few examples of the challenges faced by modern manufacturers. Thankfully, the good news is that modern ERP solutions can be a huge help when it comes to addressing these issues.

Inventory Management Software As a Solution

Several inventory managements programs available on the market today that focus not only on addressing these challenges, but also by identifying potential issues before they can impact your operations. Some of the best solutions available, like Microsoft Dynamics 365 Supply Chain Management, can seamlessly integrate with your existing software, reducing data silos, allowing different departments to share more information. Instead of requiring three departments to input the same information into a database, each group is able to provide material unique to their specialty.

Effective inventory management programs like Microsoft can print barcodes and QR labels. When these codes are scanned with a hand-held reader or cellphone, users can be rewarded with a wealth of information. The most critical data to track are precisely how much of any product you have, where it’s being stored, and what it will be used for.

For example, you need to produce 20,000 doses of a Covid-19 treatment. Your customer needs them yesterday but will settle for next week. Do you have enough raw materials on hand to meet your customer’s deadline? If not, what can you do to obtain what you need?

Using this information wisely lets management develop complex plans, like the ability to track everything from small lots to pallet loads. A company can learn by checking an item’s progress at different points—its arrival at the warehouse, use in production, loading onto a truck or ship, and delivery to the customer. By examining reports, you can identify potential delays or roadblocks and find ways to speed up delivery.

Supply chain management software on a secure cloud computing platform like Microsoft’s Azure let’s you communicate securely and safely with other researchers, salespeople and vendors. With Azure, you’ll know that your intellectual property and contracts are safe from competitors.

Boost Decision Accuracy with Power BI

With today’s supply chains – seemingly constantly in a state of upheaval – effective inventory management that goes beyond tracking stock on hand is critical to operations. Effectively managing your inventory and raw materials ensures you’ll have the materials you need when you need them. It means having more than one source of supplies and materials. It also means constantly checking with vendors to ensure you have the goods to meet your own delivery deadlines. This is where an integrated business intelligence solution comes into play.

Microsoft Power BI let’s you connect to hundreds of data sources, preparing reports you can easily share. You can confidently deliver interactive messages to customers using information from inside and outside your company. Inventory planners can be warned of potential shortages in time to find alternate supplies. Salespeople can be told of possible delivery delays caused by outside forces, giving them time to ask the customer if they want to use a different shipping method.

Accurate business intelligence at your fingertips puts you ahead of competitors stuck using their “tried and true” methods that are becoming increasingly worthless every day.

Final Thoughts

Effective inventory management comes down to data: knowing what you have and where it is.

A modern inventory control system that supports labels and barcodes lets you track raw materials, work-in-progress and finished goods simultaneously, with high accuracy.

An inventory system with business intelligence helps you find faster and alternate ways of obtaining raw materials and pre-made products, mainly when shipping delays occur. That information can help you get your products to your customers when needed, balancing everyone’s inventory.

About XcelPros

XcelPros is a Chicago-based company delivering transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.

XcelPros is a Microsoft Gold Partner, Direct Cloud Solutions Provider (CSP) and a Systems Integrator (SI) offering software licensing, implementation and consulting services for Microsoft Dynamics 365, CRM, Microsoft Dynamics AX, Business Intelligence & Analytics (Power BI), SharePoint, Office 365 and Azure (Cloud, IOT, Microsoft Flow amongst many others).

Our mission is to provide integrated technology solutions that amplify impact and empower our customer’s businesses. We believe technology is the key enabler of exponential growth for us and our customers.

Contact XcelPros today to transform your business.

Call us toll-free – 1.855.411.0585 (or) visit https://xcelpros.com/

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