Inventory Management

Posted: 9th May 2015 (0 comments)

So many leaders and their manager’s struggle to manager their daily operations and end to end value chains. A primary cause is due to bad data. Leaders as us, at OTTS, “What’s the cause on why their management teams struggle to manage the business?”

It’s comes down to two primary issues:

  1. Usually the company’s ERP system was not set up correctly for Supply Chain Planning Operations. This certainly hinders a leader's ability to have superior critical decision-making. (We at OTTS see this issue all the time at small, midsize and large companies. OTTS can resolve this issue easily. Call 888-410-6887.)

  2. Companies have bad inventory control programs/processes. Again, this affects a company’s entire value chain, such as:

    a . Supply Chain Planning

    b. Strategic Sourcing

    c. Tactical Sourcing

    d. Logistics (Expedited Freight)

    e. Master scheduling

    f. Plant Operations

    g. Demand Management

    h. Financials

    i. Customer Service (Delivery Performance, Order fill rate)

    j. Quality

    k. Inventory Management

What are signs a company might have poor inventory control?

  1. Your company has teams in place that look for parts or finished goods in the warehouse or Distribution Center

  2. Product taken off line unable to complete due to missing parts

  3. WIP has a lot of almost finished product staged around the Operations

  4. Expedited freight( from suppliers into Operations or Operations out to the customer base)

  5. The Master Scheduler is unable to plan effectively .

OTTS has achieved great success at setting up Inventory Management Programs at several companies across the entire globe. OTTS sets-up companies to where a company has an inventory accuracy rate above 98.5%, by sku level.

5 Star Packaging Programs

Posted: 16th May 2015 (0 comments)

OTTS is skilled at providing Supply Chain Packaging Optimization services that supports your company's leverage in packaging design to improve your company’s supply chain and marketing performance.

Using a systematic approach, OTTS's packaging team assesses your company's manufacturing, distribution, and marketing organizations to identify improvement opportunities, then engineers packaging breakthroughs to support your company, to see and realize productivity, efficiency, and sustainability gains.

OTTS develops Master Scheduler Superstars!

Posted: 16th May 2015 (0 comments)

Are your finding it difficult to run your operations? Is your manufacturing process not flowing smoothly? Do you need help with your master production schedule, demand forecasting, inventory control, or production planning? If so, then OTTS can help you and make your company's master scheduler a SUPERSTAR and your plant operations will become highly proficient!

A Great Master Scheduler will get your operations:

  • Improvement in the Plant scheduling adherence

  • The Plant absorption will be enhanced

  • Increase in service levels (On-time delivery)

  • Reduction in Labor Costs

  • Better alignment on your mode and mix on inventory

  • Improvement in both Cash flow and financials

Run Your Operations More Efficiently (CALL OTTS TODAY!) 888-410-6887

OTTS- Demand Management/ SIOP

Posted: 25th May 2015 (0 comments)

Demand Management/Sales, Inventory & Operations Planning (SIOP)

Sales forecasting is another key operational function that so many companies struggle to do correctly. Those companies that do struggle with sales forecasting/demand management compensate by producing a lot of finished goods in order to avoid shortages for any of their customers.

If your company is producing an abundant amount of your company’s finished goods in order to avoid shortages, then your company probably has a lot of excess raw material stored inventory. We at OTTS see this scenario played out all the time: operations are told not to short customer’s orders no-matter what!

Even though this is a common business practice, it is not very efficient. Let us at OTTS help your company’s operations to operate more efficiently!

Another common scenario, we at OTTS have seen over these past few years is that companies are investing in Demand Management software. This is good news. At least some companies are admitting that they struggle with Sales Forecasting/Demand Management. The bad news is the software implementation does not solve the company’s forecasting problem. Most Demand Management software is not set up to cover a company's plan versus actuals (This is very key to note!). These Demand Management software packages do not address the total sales by total enterprise, broken down by Country, Region, Brand, Category Distribution Center, Customer, and finally down to the sku level. In addition, most Demand Management software packages do not cover raw material forecasts versus actuals, by supplier, plant operations, and material warehouse. Finally these Demand Management software packages do not cover cost associated with the specific category enablers as described above, which we at OTTS strongly recommend companies need to do, in order to be more efficient at reducing cost while increasing service levels!

Some of the signs to look for if your company’s is struggling with Demand Management/ Sales Forecasting:

All points listed below should be represented in both Units and Financials

  1. Does your company report Sales Actuals vs Plan from an Enterprise level broken down by every level? MTD, QTD, and YTD.

  2. Does your company have a S&OP or SIOP process?

  3. What is the forecast accuracy on your company’s sales and materials? Are you seeing forecasts accuracy below 90%?

  4. How much of your company’s finish goods or raw materials are listed as obsolete?

  5. What is your company’s yearly write offs on finished goods and raw materials?

  6. Does Sales/ Marketing, Finance, and Operations sign off on all forecasts before being
    published? Are you sales and material forecasts being published for all key stakeholders in your company’s operations to see? (Big issue)

  7. How many weeks of supply does your company have on hand for both finished goods and raw materials?

  8. How many changes do your suppliers see on your company’s PO’s within the firm period?

  9. Do your company’s suppliers complain about your company's raw material forecast?

  10. Does your Operations leadership and their staff have a good understanding of your company’s Sales plan versus actuals? (Very common issue

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