An Enterprise Resource Planning Software (ERP) system integrates and runs all aspects of your business, from tracing raw materials, supply chain management, financial controls, and more. This system allows you to identify where resources are being wasted, eliminate inefficiencies, improve customer relations, and enable live collaboration. Running your manufacturing process using an ERP system will transform the way you manage your business. Here are some tips on how you can make the most of your ERP system.

Enhance Your Strategies with Big Data Analytics

Having a plan is only part of your success as a business—the rest depends on your team’s ability to execute that plan. If everyone in your business understands and works to your objectives, you’ll start seeing the profit. A quality ERP system can translate boardroom ideas into actionable directives using one platform. You will be able to see all your operational planning from one place, so making decisions will be easier than ever. While manufacturers are another option, an ERP system works much faster as it is not limited by manual or legacy reporting tools. It closes the loop to allow constant efficiency by including analytics from big data, which can be used to inform and feed back into your strategy. By implementing real-time big data through this system, you can cut out inefficient manual reporting and reduce the time it takes to receive and use vital information.

Automate Your Supply Chain

Do you want to improve transparency between your manufacturer and their suppliers, while also giving your customers better visibility as they await new products and deliveries? An ERP system can help when you integrate it with your supply chain management. It allows you to track order status, define specifics about items, have clarity that can prevent costly mistakes and penalties, and much more. Additionally, automation eliminates a huge factor in quality issues—human error. As a result, you’re free to focus on more exciting parts of your job, like customer relationships, sales, marketing, and brainstorming new projects.

Optimize Inventory and Warehouse Management

Materials management and product inventory are two sides of inventory management. The first part deals with ensuring your organization has the right materials to complete the manufacturing process. The second part deals with the products created through the manufacturing process, and how they are delivered to customers. If both parts do not work in harmony, you will face many challenges including difficulty gaining the appropriate materials on time, incorrect product levels, and challenges with satisfying orders. An ERP system allows optimum visibility of processes such as billing of materials, tracking materials, and inventory management. Issues in these areas are damaging to your business. It’s not enough to stock up on goods that take up valuable warehouse space. You need to know exactly what materials should occupy that space, based on what customers are looking for on your online store. An ERP system will enable you to see this valuable information automatically, as it changes. This system can reduce human errors, automate inventory requirements, and ensure that you can do your job properly.

Streamline Collaboration with Customers and Suppliers

Another benefit about using an ERP system is that it can optimize procedures and significantly improve response times. As a result, virtual communication across the supply chain and internal communication will be improved, which has a positive impact on collaborating across your business. These close collaborations can address and resolve problems in a timely fashion. A quick response to change is what customers are looking for. If you provide valuable information with satisfaction, you will do a better job at leveraging business opportunities.

Product Configuration

Product producers must be able to stand up to their competition to stay afloat. The product configuration modules that an ERP system offers can help manufacturing companies track and manage orders, make accurate quotes, manage prices, manage distribution, and much more. This important aspect of ERP systems has many benefits including the following:

• Reducing time to market
• Decreasing inventory levels
• Increasing productivity
• Decreasing transaction costs

Boost Global Communication

Aside from automation, an ERP system can also increase your efficiency. To improve your time to market, you can give your entire supply chain access to relevant information such as product deadlines, and shipping instructions. These can be provided in real time to your global locations, suppliers, customers, internal stakeholders, and more.

Get Help Managing Your Manufacturing with Lean Supply Solutions

There are endless benefits of using a single system to manage all your supply chain operations. Studies have shown that companies that implement an ERP system end up achieving greater operational improvements than those who don’t. If you want cost savings, increased efficiency, and a thriving company, an ERP system may be the solution you need. Working with a 3PL partner who provides these solutions can be a time-saving way for you to reap these benefits.

Lean Supply Solutions can help you if you are looking for a 3PL company with the latest technology. We make ourselves aware of the rising trends in the logistics industry and always strive to stay up to date. We commit to being aware of our clients’ operational challenges as they arise and help them get the most out of their supply chain processes. Our 3PL, packaging, and supply chain management can streamline your processes for better success, and by striving to ensure that the right products are provided to the right customers at the right time, we can offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us today.

The supply chain is the backbone of your business regardless of what you offer customers, as you need to move your products from your warehouse to your consumer as smoothly as possible. However, there are many challenges you will face as an e-commerce business. Today’s global ecosystem has a complicated supply chain and by dealing with your partners, each with their own logging systems, you may experience a loss or confusion of information. To simplify communications of global supply chain, blockchain technology has been developed for business like yours. Here’s what you need to know about the new tech and how it is transforming the supply chain.

What Is Blockchain?

Blockchain for the supply chain is secure, distributed electronic leger that connects multiple parties in a trusted network of integrity. It facilitates the transfer of assets and information pertaining to those assets. The technology was invented in 2008 to power Bitcoin (and now other cryptocurrency) when it launched in 2009 and is now being used for everything.

It achieves its purpose by securely making a record of digital transactions in a chronological chain using cryptographic digital keys that are verified as authentic. The chain prevents duplication, editing, and removal of transactions, and is visible to anyone on the network via their computers. The longer the blockchain and wider the network is, the more complex the digital key is. Therefore, it becomes more secure.

Benefits of a Supply Chain with Blockchain

Purchase Process Automation

Automatic contracts (smart contracts) can be set up with blockchains. Once the users agree upon certain conditions, smart contracts automatically spring into action to execute their terms, whether it be service payment, shipment authorization, etc.

Customer Engagement

If boosting customer satisfaction has been a challenge for you in the past, blockchain is one tested and true solution. Retailers can use the database to view items in the production process to build a better delivery time for their store. This boosts customer satisfaction by showing them valuable information and improving communication. Customers can also access some information on the blockchain such as a social consciousness approval form or labour union sheet. By sharing data in this way, a new level of transparency is achieved with the consumer. This builds deeper loyalty through a better client relationship.

Streamlined Operations

With blockchain, all information is loaded to the cloud. By digitizing the logging process, there is a reduction in administrative work and more consistent data tracing. Instead of connecting with your partners to get the information you need, you simply sign onto the chain and view the information by downloading it. All the information you need to know about the product is in one location, which streamlines the communications and operations processes. Even better, blockchain is worldwide and scalable which means the tech can support global partnerships and communications within minutes.

Transparency and Connectivity

Delays in commerce and a breakdown in relations is often caused by a lack of commercial transparency. Since blockchain provides details of transactions against the commercial construct, more transparency exists in the process. This provides a more stable relationship as it is founded on transparency instead of negotiation.

Security and Trust

As the network verifies each transaction using independently verified complex cryptography, you can trust that the information is authentic. Assured information is key to unlocking the benefits of the Internet of Things (IoT). Since copies of each document are chronologically stores and linked to previous blocks, it is very hard to hack. These blocks become highly secure and difficult to fake—hackers would need to change hundreds of copies at the same time, which is nearly impossible without the blockchain noticing the threat. Because of its high security characteristics, major financial services and banks trust this technology.

Transparency

Blockchain promotes honest transparency. Everyone involved is required to upload their information and data about their products, and this collection of accurate data improves accountability and trust. Blockchain can also show updates about the product in minutes, so all partners are aware of where it stands in real time. Partners can see where the product is, how it is made, and when it is expected to be delivered, using just one platform. The technology builds communication through a visibly streamlined process that has shorter lead times, reduced redundancy and less delays. It ensures that standards are met to give the seller more control of production at each stage.

Auditability

Since each transaction is recorded in sequence, blockchain provides a permanent audit trail for the life of an asset. This provides an advantage because source data is needed to verify an assets’ authenticity.

Does Your Supply Chain Need a Blockchain?

Blockchain is already transforming supply chains, industries, and ecosystems. If banks and financial institutions can trust the technology, you also have no need to fear. There are many more advantages to using blockchain to streamline your business. More businesses are seeing the potential and demand for blockchain-enabled solutions to transform the logistics industry and the supply chain. Working with a 3PL partner who provides such solutions can be a time-saving way for you to benefit, too.

Lean Supply Solutions can help you if you are looking for a 3PL company with the latest technology. We make ourselves aware of the rising trends in the logistics industry and always strive to stay up to date. We commit to being aware of our clients’ operational challenges as they arise and help them get the most out of their processes. Our 3PL, packaging, and supply chain management can streamline your processes for better success, and by striving to ensure that the right products are provided to the right customers at the right time, we can offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us.

Modern supply chain services have become more complicated as consumer expectations increase. Even with a good supply chain management system, there are hidden risks that could pose a significant threat to the industry and your organization. New technologies can help as they make their way into operations, but business managers still need to understand these hidden risks and take proactive steps to preventing them or reacting to them appropriately. Here are some of the most common supply chain challenges of 2018.

Globalization

Having a global procurement network that can respond and support your many supply chain needs is important, especially with the globalization of manufacturing operations. However, choosing a strategic supplier that has multiple manufacturing locations with consistent global quality and reliable service for local customers can be challenging. With many options available, you need to choose a partner that has the experience and reputation you can trust.

Customer Service

Dealing with customer demands is another challenge all businesses will face. Automation is one solution that makes this responsibility easier, as well as improving shipping times, reducing fees, and providing faster and accurate order fulfillment. Customer service can improve with the use of artificial intelligence in the supply chain industry, but it can be expensive. Working with a third-party logistics (3PL) partner that already implements automation is a worthy investment, and many businesses have turned to these organizations to tackle this challenge.

Market Growth

Another aspect that presents a challenge for organizations today is the pursuit of new customers. There is a significant cost to produce and develop a new product, therefore companies are seeking to expand their distribution to grow revenue and increase market share. Companies are expanding their distribution out to foreign markets to bring in new customers—but this comes with its own challenges of trading policies, fees, and government policies. Working with a 3PL provider that already has connections overseas, or that understands these policies and can work within those constraints, will be a huge advantage to you and your business.

Predictions and Forecasting

To remain efficient as the supply chain changes, you need to include periodic assessments and redesigns as part of your strategy. These adjustments help you adapt to changes in the market such as new product launches, global sourcing, credit availability and the protection of intellectual property. To control and mitigate operations, these risks must be identified and quantified.

Technological Advancements

With the advancement and availability of technology, running your operations without it will only serve as a disadvantage. Like your competitors, it’s time to adopt technological advancements into your operations to keep up with the constant changes within the supply chain. There are many new tools available such as an “Uber-like” freight experience, inventory management software, and GPS tracking for delivery trucks. When seeking a 3PL partner, make sure they are up-to-date with the latest technology so you can get the best visibility.

Cyber Risks

Although the digitization of the supply chain provides many advantages, it has also introduced the risk of hacking and other vulnerabilities of cyberspace. Organizations must now take additional security measures to prevent these risks from occurring. Some of these measures relate to internal infrastructures, vendors, partners, and customers.

Inventory Management

Ensuring that all business systems between all locations are connected is important for preventing poor inventory tracking and management. This synchronization is made possible through automation and inventory management software, which properly checks where items move within the warehouse, and provides an accurate count for online shoppers. It is crucial to effectively manage diverse structures of data to prevent losing proper management, visibility, or control over inventory.

Reverse Logistics

Now that consumers are more accustomed to shopping online, there is added pressure on the organization to provide accurate results. Take the fashion industry for example: When an item is posted online for sale, the measurements and size, colour, and quantity must all be accurate. If the consumer buys a size medium, and a size large arrives, you could potentially lose a customer and deter them from ever shopping at your store again. Alternatively, if a consumer tries to order a product that says its available, but after checking out, realizes the item is on backorder, it will cause a great amount of frustration. Because of these issues, which are inevitable with e-commerce, you need to make sure your reverse logistics solution works well for both you and your customer.

How You Can Overcome These Supply Chain Challenges

It’s crucial for you to have a clear control and understanding of your business processes before you can take on these challenges. Without this understanding, it will be hard to respond to changing demands, which can add costs as you deal with production problems. A 3PL provider can help you manage your operations so you can focus on making your business and brand more accessible to your online shoppers. They can help you respond to the challenges mentioned above, so you save time and money and speed up your success and revenue.

If you’re looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, and order fulfillment. Lean Supply Solutions can offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us today.

Your supply chain is an essential part of maintaining a well-functioning organization. If you have an efficient and organized warehouse, you will be better able to achieve your distribution goals and understand metrics. While you may be aware of some supply chain performance metrics to track, you may still be missing others. That’s why we are listing the top performance metrics you should know about, and how you can choose the right ones to make your business thrive.

Performance Metrics

Perfect Order

Perhaps the most important aspect among supply chain KPIs (Key Performance Indicators) is perfect order. This aspect consists of on-time delivery, full delivery, damage free delivery, and accurate documentation. When all these components are present, the consumer does not have to deal with any problems. Therefore, your business will continue to fill orders, while the perfect order KPI tracks the overall accuracy and length of time for every shipment. There is a formula for perfect order KPI and it is the following:

Perfect Order KPI = On-Time Delivery and Shipment KPI x Complete Order Percentage x Damage-Free Percentage x Accurate Invoicing Percentage.

Order Fill Rate

The order fill rate is broken down into three aspects: order fill, line fill, and unit fill. The total order fill rate is calculated by dividing the sum of orders shipped on the first try by the sum of orders that were able to be shipped based on available inventory. Multiplying these three sub-KPI percentages together will give you the total fill rate KPI.

Order Fill Rate = Order Fill x Line Fill x Unit Fill.

Shipment & Delivery Time

To get the metrics for shipment and delivery time, you need a full understanding of the on-time KPI. The on-time delivery KPI is found by dividing the number of orders shipped and delivered by the sum of orders shipped and delivered on-time.

On-Time Delivery and Shipment KPI = Total Order Shipped and Delivered (Including the Orders Delivered Late) / Total Number of Orders Shipped and Delivered On-Time.

Cash-to-Cash Cycle Time

So far it has seemed as if KPI is a purely financial aspect, but it also reveals how efficient your operations are. The cash-to-cash cycle time is calculated by averaging the cycle time from paying for raw supplies to receiving pay for the end product by consumers. A lower KPI means higher efficiency, lower carrying costs, and improved profitability.

Customer Order Cycle Time

To ensure your warehouse is running at optimum performance, you should track cycle times. The total of this KPI refers to the time needed to properly store the product in inventory from arrival time, then ship it from the warehouse. You can record the dock-to-load time, picking, packing, and preparing for shipping times. This metric provides a good look into whether your process is performing to meet your expectations or if it needs to be improved.

Inventory Turnover

This KPI measured how well your organization moves its inventory. This metric will give your organization a better idea of how efficient your supply chain is, including your buying practices and demand for products. Inventory turnover shows how often you can sell your entire inventory within a year. Moving inventory quickly is essential, as it lowers storage costs and lets you sell products at a premium price instead of relying on promotions and discounts to clear out stock.

Warehousing & Transport Costs

This calculation is comparable to storage space utilization, where you divide the total warehousing and transportation costs by the total shipped items over a specific time period. The duration may differ, which gives you the opportunity to compare average costs against past time periods. You can track costs over a week, month, quarter, or year to achieve a comparison.

How to Choose the Right Metrics

Here are a few tips for choosing the right metrics:

• Your KPIs should be easily understood without needing to study them too hard. You should be able to understand what the metric is measuring.
• Metrics should be based on an objective value or hard data.
• Always vet your metrics against your company’s needs before deploying them.
• Your KPIs should identify corrective actions and help your company make them when necessary.
• Avoid metrics that are overly time-consuming to collect. If your staff need to be taken away from other jobs to prepare data, the KPI is wasting your valuable time. There are easier ways to collect data, such as working with a third-party logistics (3PL) partner, who has the manpower necessary to tackle these tedious jobs.
• KPIs that relate to time are easy to calculate and understand, and they clearly reflect operational effectiveness. These metrics include the level of on-time deliveries, on-time receipts, time taken to process orders, and to fulfill an order.
• Cost-based metrics can help your company improve margins and your bottom line. They also identify where your business can improve.
• Your metrics should be output-based, meaning they are easily measured events or deliverables that are finite in nature. They focus on resources and capabilities of the supplier or the processes needed to provide service.

Improving Your Supply Chain Performance

Tracking the right supply chain KPIs is paramount to the success of your organization but measuring and understanding these metrics can be time-consuming and overwhelming. If you need to focus on marketing and sales, let a reliable 3PL help you improve your supply chain strategy. Lean Supply Solutions provides supply chain management and we make ourselves aware of the rising trends to help our clients maintain success. We commit to being aware of our clients’ operational challenges and help them get the most out of their processes. We can offer consistent, accurate, and quality results by striving to ensure that the right products are provided to the right customers at the right time, while saving you money, and we can help you track and understand your metrics. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us today.