4 Critical Reasons COGS are too High

by cjkeatley 18. September 2013 05:31

Nothing in business is more frustrating than being unable to capitalize on what should otherwise be considered an excellent product offering. In this case, you’ve got exactly what your market has demanded, your customers have asked for, and your competitors have tried unsuccessfully to duplicate. Yet, despite all these benefits, despite all your product’s advantages, its cost of goods sold, or otherwise known by the acronym “COGS”, is too high. However, you know exactly what the issues are: You lack the real-time data tracking capability of an asset tracking software, one that can give you instant feedback on all things inventory-related.

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Inventory Costs

Inventory Management Software and Vendor Consolidation

by cjkeatley 10. June 2013 03:54

Vendor consolidation is a proven strategy that allows companies to amalgamate their purchasing volumes and reward those volumes to a select few vendors, ones that have demonstrated an ability to deliver excellent quality and superior service. The idea is to reduce your vendor base and use your company’s economies of scale to drive down prices, reduce your costs on freight, lower your costs of product obsolescence, damage and theft, and most importantly, lower your costs of financing. However, vendor consolidation only works if your company has an inventory management software that focuses on asset management in real-time, one that tracks inventory cycle counts and one that provides analytics and reports on your supply chain’s performance. However, there is another, far more important, reason why having an inventory management software is so important in vendor consolidation.

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Work Order Management: Subassembly Parts of a Finished Good

by cjkeatley 1. May 2013 16:20

When it comes to asset tracking, how does your company analyze manufacturing cycle times? For instance, do you focus solely on the cycle times to manufacture a finished assembly? Or, do you also analyze the individual times for each subassembly portion of the total assembly? Granted, these are loaded questions. However, they point to the issue of why some manufacturers focus too much of their analysis on the cycle time for a finished good, without properly analyzing the individual cycle times for separate work operations. This is ultimately why a number of enterprises make sure to break down their analysis on cycle times to include tracking work order completion for all individual operations. This allows them to isolate areas of concern, while also mitigating issues pertaining to downtime and lost time in specific work stations. The question now becomes: Does your company track work order completion for each subassembly portion of the finished good?

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Inventory Cycle Counts Versus Sales Volumes

by cjkeatley 20. March 2013 09:05

One of the biggest supply chain issues for today’s enterprises is how they match their inventory counts to their customers’ demand. This often becomes a situation where a company either has too much inventory, and not enough sales opportunities, or too many sales opportunities, and not enough inventory. One issue pertains to a company’s inventory carrying charges, while the other pertains to a company’s lost sales. Both are direct costs of inventory management and they are the reason why companies continually struggle to find just the right amount of inventory to meet the needs of their market. Ultimately, the solution it comes down to tracking your company’s historical sales volumes versus your inventory cycle counts of finished goods.

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Inventory Management: Reducing Material Shortages

by cjkeatley 15. March 2013 08:24
low inventory

As a manufacturer, how does your enterprise reduce the high costs of encountering multiple material shortages? Better yet, why are you encountering so many shortages and is there something your inventory management team can do to eliminate them as a going concern? Well, in a number of cases, material shortages come with the territory. Some are caused by market-wide material shortages, the kinds that affect all companies and all competitors. However, there are other instances where material shortages are caused by human errors, ones that are exacerbated by your company’s manual inventory tracking processes. Yes, your company may be impeding its own progress simply because of how it manages these shortages. It’s the reason why you need to upgrade to an asset tracking software, one that can track inventory in real-time.

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Inventory Management Essentials: Little Things Make a Big Difference

by cjkeatley 30. November 2012 05:00

inventory management small vs large

Companies that excel in warehouse management typically have an inventory tracking software that keeps tabs on all inventory counts in real-time. These companies rely upon their software in order to track a number of inventory metrics including, but not exclusive to, order picking, cycle counts, pick and place transactions and most importantly, their inventory counts on finished goods. While tracking inventory in real-time is definitely a plus, it’s often the little things that make a big difference. It’s these little things that not only help a company in inventory management, but that help them reduce costs, eliminate waste and improve efficiency. So, what are these little things? More importantly, what can your company expect once it decides to upgrade its paper processes to an inventory control software?

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Asset Management Essentials

by cjkeatley 6. November 2012 08:23
asset management essentials

What does your company consider an essential warehouse & asset management key performance indicator (KPI)? For instance, do you track your accuracy in order picking? Do you track inventory cycle counts and material allocation? Perhaps you do all of these things and more. However, do you currently have an inventory management software that allows you to easily track these KPI, or are you forced to do all this tracking and analysis via manual processes like excel spreadsheets and time sheets? Granted, it’s a lot to consider. Regardless, it points to the importance of having access to a real-time asset management tracking software, one that allows you to track your warehouse efficiencies and identify any issues pertaining to how orders are picked, how material is allocated and how easily inventory cycle counts are reconciled.

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Essentials of Inventory Management

by cjkeatley 23. October 2012 17:06
Sales Drives Procurement

Sales Drives Inventory & Procurement!

While every company understands that sales drives inventory, very few actually take the time to improve the communication between their sales and procurement teams. Instead, it’s not uncommon for these two business functions to work against one another simply because they've each been given conflicting goals and objectives. For instance, the sales team is tasked with generating sales, increasing gross profit and growing market share. To be successful means they must always have inventory available. Success means avoiding inventory stock outs. The purchasing team is tasked with reducing warehouse management costs. Their success is measured by how well they minimize inventory counts on raw materials, consumables and finished goods. Sales needs inventory to make sales, while procurement needs to minimize inventory counts to reduce warehouse management costs. It’s an obvious problem and one that is only exacerbated by companies who rely upon manual inventory management processes.

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Inventory Management Accuracy and Your Value Chain

by cjkeatley 2. October 2012 03:55
inventory value chain

A value chain analysis is a simple tool whereby companies define specific internal processes, ones that allow them to deliver high value products and services to their market and their customer base. Invariably, companies tend to focus on accentuating one specific portion of their value chain. For example, some companies tout their engineering and design excellence. Others focus on their manufacturing expertise. Others on their product innovation, and yet others focus on their vast distribution network and or their sales and customer service strengths. However, there is one portion of the value chain that all companies have, and it just happens to be the one portion they often overlook when describing the value they bring to their customers. What is it you ask? Well, simply put, everything begins and ends with your company’s supply chain and your accuracy in inventory management. It’s the first and most important part of your value chain, and it dictates how successful your company is in bringing products to market.

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Reducing Inventory Transaction Errors

by cjkeatley 4. September 2012 03:11
inventory errors

Is it fair to assume that if your company focused on reducing inventory transaction errors that you would improve your overall service to customers? It most certainly would. In fact, while reducing inventory error rates helps to reduce costs, and improve gross profit on sales, its ultimate purpose is to improve your company’s operations and service competencies. Success means you’ll improve your inventory management practices and upgrade how you sell and service your customers. It’s a pursuit that is far easier to manage when you barcode inventory and have an asset tracking software.

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