Wednesday, October 26, 2016

Part 2- Another Five Reasons to Implement Standard ERP in Poultry Industry

In last blog, I have promised to come back with a complete edition on the benefits and process of implementing a ERP in the poultry industry. Now in this blog we would go little bit micro to understand the benefits of the standard ERP in Poultry or Hatcheries.  So let’s start with the Hatchery Process. This is beginning of the process where eggs laid by the Grand Parents are hatched in the artificial mechanized hatchers to produce parent, Broiler or layer chicks. The prime advantages of using a ERP in the Hatchery are:
  1. Effective Scheduling: As the ERP system integrates all the processes it gives you an environment where based on the laying cycle and laid eggs, users can schedule the hatching machine effectively.
  2. Increase in efficiency: Due to advance planning by ERP, organizations can plan the break downs in advance. This opens up lot of opportunity windows for the efficiency improvement with less wastage of eggs. ERP like NAVFARM, helps in defining the machines capacity and availability. Which in turn helps management in taking proactive measures for smooth supply chain.
  3. Traceability: During chick production it is important to have visibility right from flock number of the grand parent/parent or batch number in case of eggs to the flock number given to the DOC. ERP software helps in maintaining the traceability throughout the value chain. This helps the hatchery owners to establish the root cause for the problems such as cracks, deformities etc in eggs. Moreover you can take corrective action for such problems.
  4.  Cost tracking: Costing is a crucial aspect in the poultry industry. Market is driven by various parameters and management would like to achieve a real costing to manage the market forces. The ERP helps in micro accounting in real time scenario giving a visibility on the daily costing of the Hatchery. This empowers sales managers to drive the better margins.
  5.  Live Inventory: As output of the hatchery is entered in live environment in the ERP, supply manager has the complete visibility in the inventory of DOC including the rejections. In scenario of the multiple hatcheries at multiple location, a centralized view is given by leading ERP such as NAVFARM.
Apart from above points there are more stuff in these ERP and organizations need to evaluate the products with agility, sustainability & scalability. I will be coming with more advantages in continuation to this series. Please feel free to write about above article to [email protected].

Tuesday, October 18, 2016

Inventory Management in Microsoft Dynamics NAV

What is the inventory Management?

In any business or organization, all functions are interlinked and connected to each other and are often overlapping. Some key aspects like supply chain management, logistics and inventory form the backbone of the business delivery function. Therefore these functions are extremely important to marketing managers as well as finance controllers

Inventory management is a very important function that determines the health of the supply chain as well as the impacts the financial health of the balance sheet.

Inventory Management process help you to increase operational efficiency, which will help you in improve following things:

  • Customer Service
  • Reduce Inventory Cost
  • Reduce Distribution Cost
  • Increase Automation and Item Tracking
  • Improve Inventory Accuracy, etc.

Features Available in Navision for Inventory Management

Inventory Costing:
Item costing through your Purchase, production, overheads, break down cost according to categories such as material, capacity, subcontracting, Work In Progress (WIP), Cost of Goods Sold (COGS), to help efficiently manage sales and purchase prices and line discounts with customers and vendors. 

Automated Frequency Data Collection System (ADCS):
ADCS help to increase the accuracy and efficiency of you warehouse management – Pick and put away, physical Item Journal, bin-to-bin movement.

Order Processing:
Provide customers with accurate item availability and deliver on time with support for available – to- promise and capable to promise insight.

Return Management: 
Purchase return and account for additional costs. Automatically organize credit memos, replacement goods, returns to vendors, and partial or combined return of shipments or receipts. Exact cost reversal helps increase inventory accuracy.

Item tracking:
Trace item through lot or serial numbers to quickly determine where items were purchased, processed, or sold.

Item substitution:
NAV have an option to Offer customer’s alternative items when those they want are out of stock.

Internal pick/put-away:
Pick or put away items and debit or credit inventory records independently of purchase Receipts, sales, or other source documents to help maintain accurate inventory. 

Multiple Locations and Responsibility Centers:
NAV Provide an option to customers who request non-stock items with immediate quotes. System automatically create non-stock items and process them in the same way you process stock items.
NAV manage items individually location wise. By grouping items into stock keeping units, items can be described and managed individually location wise including replenishment methods, safety stock, and costs.

Warehouse management system:
WMS module help you in reduce costs through effective warehouse processes such as directed pick and put-away and automatic bin replenishment.

Cycle Counting:
Determine the counting frequency per item or stock keeping unit to help increase inventory accuracy and meet shipping deadlines.

Inventory Notifications:
Generate e-mail messages to alert your people, suppliers, or partners to changes in critical inventory levels, order status, or replenishment needs.

About the Author:
Kunj Bihari Agrawal is a senior functional consultant for Microsoft Dynamics Navision. Kunj has a rich experience of over 11 years in finance domain & India statutory in MSD NAV. He has a passion for exploring possibilities of easing the entire ERP migration for corporate and is currently working with various government and private focus groups in ironing out the creases & roadblocks for GST migration on various technology platforms. He can be reached at: [email protected]