Enhance Distribution With Supply Chain Management (SCM) Software

The distribution industry faces a unique set of challenges. Distribution is the crossroads where production, purchasing, inventory, and customer demand all meet. As such, this industry often consists of multi-faceted companies that can suffer from fragmented operation priorities. Communication between these different departments and their goals is crucial in efficient operations and maximized profitability. Supply chain management (SCM) software is meant to bring about such collaboration. By directing a company's resources and attention according to a unified structure, great gains in efficiency and reductions in cost and redundancy are realized.

Operational Enhancements

Supply chain management (SCM) software ultimately connects the inflow of goods with the outflow of products. This task is accomplished first by inventory, warehouse, and purchasing management. A robust software system will integrate these functions together for live updating of current warehouse stocks and incoming shipments to accurately determine needed purchases. An integrated system takes the guesswork out of ordering and automates order entry to prevent missed or redundant orders, all the while freeing up working time for other core tasks. The supply chain leading to the warehouse can be complicated, but with a strong data sorter and analyzer, materials can be effectively tracked.

Once within the warehouse, supply chain management improves the handling of those materials. The software suite can match a barcode system with upstream and downstream technologies by putting an iron-clad tracker on each and every inventory item. Once goods are entered into an integrated system, the corresponding information becomes enabled across every department. Sales representatives, warehouse foremen, and purchasing agents have live access to stock information.

Customer Relationship Management

Once warehouse information enters a supply chain management system, the information now becomes invaluable to the sales department. Accurate inventory numbers are vital for precision in order entry and the timely fulfillment of those orders. By building a reputation of near-perfect deliveries, a technological investment has created repeat business and a sales rapport with customers. Problems that do emerge during operations filter back into the information database to identify issues and single out solution options. Customer service will link back into the front end of the business, creating repeated value from the same system implementation.

The supply chain management (SCM) software scheme of integrating data systems and sharing information makes the task of financial planners and procurement agents infinitely more effective. Being able to see the whole picture, the entire supply chain and product demand, forecasting becomes much more accurate. Reliable forecasting will eventually improve all other distribution processes as resource shortfalls will happen rarely and orders will be filled at a higher success rate.

This cyclic improvement attribute of supply chain management is what makes the technology such a strong investment. For maximum potency, a solution that is easy to implement and merge with existing systems dramatically cuts down on implementation time and returns the investment much more quickly. Both the technical details and the end user interface must seamlessly blend together for maximum potency. For example, Microsoft users will find Microsoft Dynamics a powerful SCM suite since it integrates with and operates likes Microsoft Office. A transparent, powerful system is the technological solution that will drive profitability within distribution companies.

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Supply Chain Management NVQ Level 3 - What Are the Requirements?

Before starting your NVQ Level 3 in Supply Chain Management, it is important to assess which units you will be covering in order to prevent any shortfalls throughout the duration of the Vocational Qualification Training.

A Level 3 candidate will be experienced in a day to day purchasing role with considerable responsibilities for the activities relating to the supply chain. This will include data gathering and monitoring of performance. The candidate will have a good understanding of the legal and commercial aspects of awarding and managing contracts.

The Level 3 NVQ has a requirement that 9 units are completed. Each unit will have a number of sub sections (Elements) as well as specific Performance, Ranges of Activity and Knowledge / Understanding criteria which the candidate must demonstrate.

There are 3 mandatory units, which apply to all candidates, and cover core management skills.

There are 17 Optional Units covering the remainder of the SCM requirements.

Mandatory Units

The candidate is required to complete all three mandatory units:

T1 : Maintain operational relationships within the supply chain

T2 : Analyse information on the supply chain

T3 : Apply improvements to the supply chain

Optional Units (6 from this section)

T4 : Monitor the achievement of project tasks

T5 : Control supplies at storage locations and facilities

T6 : Complete export procedures and requirements

T7 : Complete import procedures and requirements

T8 : Administer contracts

T9 : Analyse information on the procurement of supplies in the supply chain

T10 : Verify the capability of suppliers to meet supply specifications

T11 : Analyse the performance of suppliers

T12 : Identify potential suppliers for the supply chain

T13 : Place orders with suppliers

T14 : Monitor and progress the delivery of orders

T15 : Monitor the flow of supplies in the supply chain

T16 : Obtain information on storage locations and facilities

T17 : Obtain information on distribution requirements

T18 : Monitor the distribution of supplies

T19 : Monitor the flow of returned supplies

T20 : Monitor the transportation of supplies

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Why Is Efficient Supply Chain Management Important in a Growing Company?

A supply chain is an efficient process that ensures a company has all the supplies or materials that it needs to produce products especially in a manufacturing company. A growing company needs to have an efficient supply chain management to ensure its success and there are many firms that specialize in these services. What makes this process very important especially for small to medium scale companies is that it is practical to use and very easy to apply in most types of industries. 

Here are more reasons why you should consider supply chain management services to boost your growing company:

1. Never miss a deadline - with an efficient supply chain management system, you will be able to manage deadlines easily. Every raw material, equipment and tools needed to create products are handled efficiently with this system and these results in uninterrupted production with products reaching customers at the provided time frame. You can even handle as many orders as you can when the demand for your products increase; a supply chain management system will be able to deal with any huge demands of production in any kind of industry.


2. Maintain great relationship with your suppliers - a management system will help managers and supervisors choose the ideal supplier of raw materials, equipment and all the needs of production. And as you constantly order materials, you will be able to improve your relationship with your suppliers in the long run.


3. Always have the best prices for your materials - good relationship with your suppliers opens doors for the best prices and offers for materials needed for production, prioritization of your orders, increased trust in your company and of course a lot of savings on your part. You may opt to deal directly with suppliers and this significantly reduces prices of your orders and the time for your orders to get processed.


4. Connect with all departments using the supply system - when you use an efficient supply chain management system you will be able to connect all the areas of your company that is related to and may affect supply and demand. With this, you can process orders easier and faster, increase your productivity and improve efficiency in the company.


5. Reduce cost of production - definitely a single supply chain management system is equivalent to three or more employees doing the same work. You can significantly reduce the cost of production with the money saved used in other aspects of your business like product research, marketing and in advertising. You do not need to hire more employees either since this system will run for as long as you continue to give orders.

A supply chain management system is flexible and may also be programmed to work with different kinds of companies and industries and will also work with any kind of product or services. This kind of system works for small to medium scale businesses or may be expanded to work with large companies locally or for international businesses.

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SAP Hosting: A Concierge to the Cloud

Why A Partner Certified in Hosting Application Is The Best Way To Get to the Cloud

It seems that nowadays everybody is switching over their business to the cloud. And why shouldn't they? Being able to connect to the cloud has many potential competitive advantages for your business, especially for your SAP applications. With a hosting service connecting you to the cloud, you don't have to worry about in-house data storage or upkeep. You also don't have to deal with any hiccups in your business' day-to-day operations.

One of the biggest advantages to SAP hosting is the flexibility that it provides. SAP hosting provides scalable solutions so that you don't have to be tied down by constraints on growth. Simply put, SAP hosting services are your concierge to the cloud.

Hold on now, before you start sprinting towards the cloud you should know that there are several things you should check on before being sure an SAP host is the right fit for your business.

About SAP Hosting Certified Partners

One of the easiest ways to narrow down your search is by being certain that you are selecting a SAP certified hosting partner. SAP only certifies hosting services that meet the highest standard for security, customer support, and quality of service. In fact, SAP has only certified 15 firms to provide SAP hosting services in the United States. If you don't choose a certified managed service then you're just asking to risk the security and sustainability of your business' data.

Choosing a certified SAP hosting partner is a great start but you want to make sure that the hosting service can provide the support your business needs. That means the hosting provider actually works with you to find the best setup for your data. If the hosting service is too big, your business' needs could get lost in the noise. On the other hand, if the managed services provided are small in scope, the hosting provider may not be able to keep up with the specific needs of your business.

Like I mentioned earlier, flexibility is another benefit of having a hosting service connect you to the cloud. When you combine a state of the art data center with great customer support you get an SAP hosting partner willing and able to work with you as your business grows. The best aspect of the cloud is its limitless potential for expanding alongside your business. With the cloud, you don't need to buy-in to large premiums for unnecessarily powerful data servers when your business doesn't have the need for it yet. As well, you don't have to worry about constantly upgrading your application every time your business grows past the limitations of your equipment.

The business world is making its way on over to the cloud. Business' stuck with outdated in-house data storage won't have the ability to compete. So really if you want to be competitive, it isn't a question of when you should switch over to the cloud, it's a question of how; the best way is with a certified SAP hosting partner with you to help you chart your path.

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SAP Business One Alternative Consulting

If your implementation was screwed up and you got a feeling that you need second opinion then this publication is for you. Let's think about possible reasons and discuss the options. 

FAQ is the key word to launch your homework and let's organize this publication as questions and answers. 

Please note that this paper is not intended as technical one. It is not for programmers as it is designed for IT directors and business owners:

Q. Our implementation went €South' and at this point we are looking for second opinion. We contacted several consulting firms in the area and they indicated that interest is very low as software is already sold and they cannot expect software margins. The problem was customization and programming in Software Development Kit where we got buggy add-on?

A. Sorry to hear that. At the same time we have to note that local consulting organizations have to stick to certain business model where software licenses sale is key element together with initial generic implementation. Customization might be not their strong point. They might be in the position where modification is only needed to a fraction of their clientele and running programming department might be too risky. In your situation we would recommend to appeal to nationwide consulting organizations who are interested in doing software development.

Q. We understand that local consulting firms might lack programming experience. We tried to hire local programmer but he indicated that he has to come through learning curve in order t.o help us customize the system?

A. Well, learning curve might be a way to go but we believe that it is easier to appeal to remote support. Nationwide consulting firms typically have so-called €Software Development Factory'. Connection method is via web sessions.

Q. We hired programmer who convinced us that he will do the job of integration via SQL Stored Procedures. The results were multiple data corruptions in production company. Could you help us with taking it over?

A. Business One has three tiers architecture including application server. If you need custom integration then programming should be done in Microsoft Visual Studio with SDK code samples in C# or VB. Direct data feeding via SQL stored procedures doesn't validate business logic and this is why it is not recommended.

Q. Our problem was not successful data migration from old Great Plains DOS. Consultants spent numerous hours trying to find out how to export historical sales orders or at least connect to GPA via ODBC?

A. We described ODBC connection options to GPA in several articles and please find them via internet search if you need details. You need DDF files in order to connect. We recommend Pervasive SQL Control center as data export tool.

Q. We are multinational company and for us SAP B1 was the choice because we are opening subsidiary in Sao Paulo Brazil. We were able to find local consulting firm. The result was placing the server in Brazil and GL chart of accounts which was different from our corporate one. Now we have to ship CSV exports to our headquarters and reshape them in Excel?

A. Our recommendation is to host all international subsidiaries DB on the central SQL Server in the headquarters and have them implemented from template. GL chart of accounts should be the same. Consider opening client interface via Citrix or if you are in Cloud environment then discuss with Cloud provider.

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What Exactly Is Cloud Computing?

The confusion with cloud comes from the wide adoption of the term when describing most (or in some cases any) forms of hosting - shared or managed. It has become synonymous with virtualisation, on-demand services, outsourcing and many more terms which have actually been in use within the market before the term 'cloud' was coined, and have become important considerations in their own right when reviewing IT strategies and plans.

The National Institute of Standards and Technology (NIST), cites the definition of cloud computing as:

"...a model for enabling convenient, on-demand network access to a shared pool of configurable, computing resources (e.g. networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction."

The question is: how much does this differ from the essential concepts of managed hosting? Managed Hosting is, by definition: an outsourced set of products and services, which can supplement or replace a company's internal IT plan. In essence, the two terms both describe a service delivery method by which business and web applications and tools are accessed, stored and managed.

At the moment, three distinct cloud hosting service models can be identified:

- Cloud Infrastructure as a Service
- Cloud Software as a Service
- Cloud Platform as a Service

This is another way to demonstrate how clients should see elements of a cloud as a tier of managed hosting. There should be a differentiation between the cloud models as they each offer varying advantages and disadvantages to IT strategies, further confirming the need to identify end goals before embarking on any type of cloud hosting service.

How to Choose:

When looking at shared hosting, dedicated hosting, managed hosting, or co-location as an outsourced IT solution, clients will undergo a justification process of their own requirements and needs. In the case of managed hosting, it is with the assistance and advice of an account manager, hopefully, aided by an external consultant in the other cases. They will then weigh up the current and future managed hosting needs. It appears that with the emergence of cloud as a service consumers and businesses are keen to "jump on the bandwagon" to receive the multiple and inevitable benefits of cloud computing without much concern for this basic process of project validation.

The main features & capabilities of the 3 most prevalent models (from the NIST):

Infrastructure as a Service:

- Provides the consumer with the capabilities to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, including operating systems and applications.

- The consumer does not manage or control the underlying cloud infrastructure but has control over the operating systems, storage, deployed applications, and possibly limited control of select network components. e.g. host firewalls.

Software as a Service:

- Provides the consumer with the capabilities to use the provider's applications, running on a cloud infrastructure.
- The apps are accessible from various client devices.
- The consumer does not manage or control the underlying cloud infrastructure or even individual application capabilities, with the exception of limited user-specific application configuration settings.
- Examples include: Basecamp, Microsoft, Sharepoint, Oracle, SAP, Google Apps, Salesforce.com.

Platform as a Service:

- Provides the clients with the capability to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider.
- Consumer does not manage or control the underlying cloud infrastructure but has control over the deployed applications and possible applications hosting environment configurations.
- Examples include: Amazon EC2, Amazon S3, Zoho, Iceberg, LongJump

*Mell P and Grance T (10/07/09) The NIST Definition of Cloud Computing - Version 15

Especially in the case of the cloud infrastructure-as-a-service model, managed services providers can continue with business as usual simply by making a few tweaks to their products. In fact, it could be even said that cloud has simply been applied to the normal service rather than drastically transforming or replacing it.
The "Virtual Private Cloud" or "Virtual Shared Cloud" terms could simply be seen as virtualised managed hosting environments created using software such as VMware or HyperV. A virtual environment is still essentially served by either a dedicated or shared physical server located within a data centre.

Important Questions:

A business should not let the buzz words which are inherent in the industry distract from making sure that their business goals and plans are understood and properly met by any outsourced solution they enter in to, cloud or otherwise. Questions such as:

- What is the main objective of the project? (cost savings, reduced management time, security, scalability)
- Will the project transfer easily to a cloud service models?
- Does the provider's service level agreement meet the project targets and requirements?

These are just a taste of what any company or consumer should ask themselves when investigating a new environment, especially when delving in to a relatively new service model.

How do I use Cloud?

There are multiple ways in which the term Cloud is being used but, realistically how does a company apply it?

Cloud technologies can help companies use their hosting budget efficiently, through the use of appropriate hardware for their environments.

1. Like any business tool, cloud computing will not cut costs by itself. There seems to be a lot of advertising out there claiming that all cloud products will significantly reduce expenditure, no matter how - or if you know how - to implement them. First of all, it is sensible to look at Cloud technologies and ask HOW they fit into both your business plans and your budget.

2. Cloud technologies are not an all-encompassing business solution to solve all technical and expenditure woes. They need to be used in conjunction with other technologies and features in order to optimise your online environment.

3. If you need an environment that meets certain universal security standards and/or 24/7/365 support, than simply placing your data in the cloud isn't enough - you will need a shopping list of requirements, plus the technologies and features that meet them.

4. Efficiency is often the word paired with cloud by marketers trying to make the terms synonymous, and thereby continuing cloud's reputation as being the IT wunderkind of the business world. Of course all businesses should strive for efficient use of technology, resource, and hardware - with cost efficiency being right up there at the top of most 'must-have' lists. But cost efficiency does not always equal short-term savings, and in the same way that one sometimes needs to 'spend money to make money' it is not unfair to say that one could 'spend money to save money....later'. In other words, using one's cloud budget efficiently to meet client needs, in order to increase revenue, and also to save on future hardware or resource costs.

You can achieve the environmental elasticity that you require if you are willing to spend the appropriate amount of money for your cloud aims. Just remember to be elastic in your cost expectations and everything will be just fine.

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SAP Implementation Challenges

Typical Implementation Problems: Enterprise Packages or ERP Solutions have come a long way and progressed over the years. Today it is possible to keep track of most transactions in real-time across an entire enterprise.

SAP is a software package that is highly configurable and was developed building on Best Business Practices. Implementing SAP will most likely alter existing business processes for the better, as long as change is accepted. One of the most difficult issues during an SAP implementation is most often the reluctance to change. People become comfortable with the way things have always been done. To put the necessary changes in place a well laid out plan must be established.

Any ERP implementation has its challenges, which range from financial over functional to technical issues. During any implementation, problems can appear at all levels of the project. These can be business problems, financial problems, ERP systems functionality issues as well as conflicts between project team members. Combined these problems can make the management of the project a true nightmare. There for it is important to deal with all problems in a timely manner. Procrastination may lead to a accumulation of problems, which can make resolution almost impossible without any delays in the overall project time-frame.

Anyone who has participated in multiple systems implementations knows that there is no such thing as a typical implementation. Every implementation is different. Every implementation has its unique risks and challenges.

It is important to have a defined project scope. The project scope is necessary to keep the entire project focused on delivering the implementation with its agreed upon functionality. Usually projects start with a scope definition based on business functionality. Organizations usually put together a document specifying its requirements based on its current business model. This document is used to identify the proper ERP Solution. After selecting the ERP Solution of its choice this document is then used as project scope, meaning the attempt is made to make the ERP Solution to fit the existing business model. Again, here comes the reluctance to change in place.

For any SAP Project, it is recommended and better to define the scope by SAP functionality. SAP has been developed using standard business rules. A SAP implementation may require a change in current business rules in order to adapt easier to SAP and be able to stay as close as possible to the standard. Staying as close as possible to the standard will allow also for easier compatibility with future SAP releases and make any upgrade easier and less costly. Staying with the standard and following SAP project scope will help also to avoid ambiguity within the project team in regards to what SAP functionality is within the scope and what functionality is out of scope.

It may be difficult to manage the scope. During an implementation the implementation team will discover and learn more about the SAP functionality and the business itself, which may make it necessary to change the project scope periodically.

Potential Resource and Management Problems during an SAP Implementation

The following categories are all part of the overall project resources:

• Infrastructure, which entails: Hardware and software components required to run SAP
• Project Teams: The resource "Project Teams", which may consist of internal and external team members who are participating in the SAP implementation project.
• Support Personnel: the employees needed to support SAP during the implementation and after the going-live phase.

Internal resources are usually the so-called key-users that participate in the SAP implementation. A key-user is a employee that is intimately familiar with all business processes and requirements as it pertains to their job function and/or department. Problems may arise if such key-user is selected on seniority or workload within a department rather than on their individual knowledge and familiarity of the various business processes. Since these key-users know the internal business processes as it relates to the current infrastructure but have no or only very little SAP experience, it is imperative that these key-user learn the SAP functionality before start of the project.

Keep in mind that these resources are responsible of how a company transacts business in the future. These key-users must learn the functionality and configuration possibilities in enough detail in order to make intelligent implementation decisions. Key-users usually also train employees and act as first level support within their area of expertise.

There for it is important that the project team is staffed with the right employees.

Many companies today feel that they do not have the internal full-time resources available to participate in the system implementation. Companies that are already operating on a bare minimum staffing, due to downsizing or rightsizing, think that there are just not enough people left within a department to support the day-to-day business and support a SAP roll-out. Here companies have to become creative. It could mean retrain some of the staff that is not actively participating in the roll-out project to take over some of the functions a key-user would not be able to fulfill during the roll-out project participation.

Sometimes it seems those internal resources, that seem to be able to balance the act between their day-to-day work and the SAP roll-out project responsibilities will eventually burn themselves out.

This could be also be a point where careful budget planning can come in handy. Options could include retraining existing staff to take on the responsibilities of the key-users and additional temporary staff could be hired to do some low level work. Using interns to replace key-users could be another option.

External resources are usually skilled consultants that participated already in multiple SAP implementation projects and have the technical knowledge on how to customize the SAP System to the specific requirements. Skilled SAP consultants today come at a premium price. There for the proper management of SAP resources is even more critical in order to receive the most "bang for your buck".

External Resource items to consider should be:

• How many consultants are needed?
• What is their implementation experience?
• What is their industry experience?
• At what time during the various phases of the project, are which resources needed?

Another important factor to consider would be not trying to do all at once, but rather in Phases. Many projects have failed or were bogged down by trying to do too much at once. Often, organizations are so used to, with what they have currently in place that they oversee the fact that some of the current functionality has grown over time and is not a drop-dead requirement to operate the business.

It is imperative to have a fact-finding session, to determine: "What would be the minimum functionality that is needed to operate the business and what could be done in a second or third phase?"

Change Management experts have also determined that organizations change more effectively through multiple cycles of learning (1).

The biggest problem I have so far encountered during any SAP implementation was the lack of management support. It is imperative that a project of this multitude has a sponsor that some sort of influence within the organization. This should usually be an executive team member that has an interest in the success of the project.

Another important governance of any major SAP implementation is the Executive Steering Board. The steering board will have the final saying if significant changes or existing business processes are required or if business impacting process additions have to be implemented.

The steering board or project management board usually consists of high-level executives, representatives of the systems integrator, a quality assurance representative and a change management representative. (2)

For the SAP Implementation to be a success management must understand, support, and eventually direct the new business processes under SAP.

(1) SAP R/3 Implementation Guide: A Managers Guide to Understanding SAP

(2) Keane Whitepapers: Getting it right the first time: 9 Best-Practice Guidelines for a Successful SAP Implementation

4954 IT Consulting, LLC specializes in the two core service areas of "Cost Reduction Programs" and "Business Process Improvements", which include:

Coordinated strategic planning

Outsourcing consultation, implementation and support

Project Management

Business Process Design

Business Process Optimization (BPO)

finding effective solutions in a variety of industries.

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