by: Jake Halverson, Business Development

Growing Companies Need Better Inventory Control Methods

On a daily basis I speak with small, growing companies who are managing their manufacturing with spreadsheets. Increasing their lot control and inventory management is always one of the main issues they face with the manual systems they are currently using. These companies typically have someone going through their warehouse with a clipboard; keeping track of the information by hand is far from ideal for them because they have outgrown this method of “inventory management.”

Without using a real-time ERP system for inventory management and lot control, how can a company ever know what really needs to be produced, or how much of a specific product is on-hand at any given time? Data entry errors or duplicate data entry are also issues that these companies all seem to be facing,  and they face a lot of difficulty tracking their batches back to the source because they are not running software that is visible throughout their business.

 Manufacturing companies often waste countless hours each week with their manual systems. Time and resources are essentially lost along with expiring or nearly expired products. Lot tracking issues also lead to many FDA recall issues because the paper trail can be a tedious way to try and find where the problematic batch or batches may have originated – especially when they only have hours to show proof that the specific lot has been quarantined. The only real way to have accurate inventory management is to correctly implement and use a real-time, industry specific ERP solution.

Pedigree Tracking – IT Solutions to Make Life Easier

The Prescription Drug Marketing Act of 1987 (PDMA) requires drug distributors to provide documentation of the chain of custody of drug products, a.k.a. pedigree tracking, throughout the distribution system.

The tracing of every entity that has handled a drug since leaving the manufacturing plant can be done on paper, however this approach is subject to errors and forgery, but most of all it does not create the safeguard that the FDA intended with this Act. The FDA favors Radio Frequency Identification (RFID) for track-and-trace applications. The Enterprise Resource Planning (ERP) software packages designed specifically for these highly-regulated industries contain all the tracing tools needed to comply with FDA regulations. 

The automated warehouse solution (AWS) of a fully-integrated ERP is considered the “Cadillac” system for pedigree tracking. AWS operating on a radio frequency backbone provides real-time inventory transactions. Labels are printed for all items so that inventory can be scanned with a hand-held scanning device. The labels include the item number, lot number, receipt date, and expiration date. AWS is able to search and obtain critical information about any item. Inventory items can be issued, received, or transferred without manual entry. An AWS is also a tool for paperless physical inventory and cycle counts.

When an AWS functions synonymously with an ERP, sales orders can be selected without printing sales order pick tickets. Materials, labor, and finished good quantities can be posted to the batch ticket. On the purchasing side, a product can be received from a purchase order without paper. A real-time bar coding solution has the added bonus of increasing inventory accuracy with the tracking of all movement of inventory items. Also, dual entry is no longer necessary, thus reducing the number of potential manual errors.

AWS, as part of an integrated ERP, gives pharmaceutical manufacturers the most complete manufacturing and tracing system necessary to uphold the integrity of their products as well as take the lead in establishing the requirements for the FDA pedigree tracking ruling that affects all parties in the pharmaceutical distribution chain.

Read more about Pedigree Tracking and the functions of ERP software in this White Paper.

by Shanon Odegaard

SQF/BRC/NFS Certifications

Our customers are becoming more interested in process certification.  As the consumer market has become more aware of quality and safety issues with food sources, manufacturers must follow suit with certifications in order to stay competitive.  Our ability to address these issues offers our customers assurance of being able to meet standards and certifications effectively and efficiently.

The standards and certifications that our customers are looking to comply with include: 

·         British Retail Consortium (BRC)

·         Safe Quality Food Institute (SQF)

·         National Sanitation Foundation (NSF). 

They are all similar in that they are regulated by third party programs. These programs certify that a business is complying with safety and quality standards of that particular organization.  They are all based primarily on cGMP and HACCP concepts and practices, all of which ProcessPro is well-versed.

  by: Gus Towers, Regional Sales Manager, NE

  Are you the #1 priority to your ERP vendor?

Focus (or directed attention as it is defined by Webster’s Dictionary) gets people far in life and is behind some of the most successful people in history.  Focus led Albert Einstein to the development of his special theory of relativity for which he earned the 1921 Nobel Prize in Physics.  It directed Wayne Gretzky to four Stanley Cup Championships and the label of “the Great One” as the greatest hockey player ever. Focus also led Sir Isaac Newton to develop his theorem of universal gravitation and the three laws of motion.  While we at ProcessPro are not claiming to be half as smart as Einstein or Newton, or possess a slap shot like Gretzky, we do place our primary focus on our customers:  batch process manufacturers. 

How do you know if the ERP software company you are looking to invest in and form a long term partnership with has directed attention on your business?  Simple. Ask them one question:  how many customers of yours are process manufacturing companies?  If the answer is “not all of them,” they are not focused on your business.  When you do reference checks, ask their customers if they share time at the user conference with customers from other verticals or if they have to sit through questions centered on auto parts, lumber, or machining.  Are there parts of the software that don’t pertain to the batch process environment?

Some ERP companies started with retail companies and then got into the process manufacturing world; others dealt with discrete manufacturing clients and saw money in the more regulated batch manufacturing vertical.  The problem is that these ERP vendors now have to allocate resources across all the different, sometimes unrelated industries, they service.  Development time, implementation, and support resources are spread across multiple verticals and the end result is a vendor that is a jack-of-all trades and a master of none.  Are they really focused on the needs of the process industry or are they bridging the gap until the auto industry comes back or the housing market rebounds?

What is the benefit of a vendor that is 100% focused on batch process manufacturing?  At ProcessPro, you get full time industry experts across the entire company, from sales and support to implementation and development.  You get a company that is focused not just on today’s regulatory requirements, but also preparing for the ones in the future.  You get a proactive company that is ahead of the curve by being tied in with the FDA and has completed FDA validation at several locations.  Most importantly, you get a company that is with you for the long haul, a company that is dedicated to you and your business all of the time, not just when the other verticals are seeing a downturn.

Batch process manufacturing is all we do, all day, every day, 100% of the time!

  by Mat Jahnke, Business Development

  Industry Tradeshows

As I prepare to head off to the Natural Products Expo West (NPEW) in Anaheim, CA this weekend, I think about the benefits of attending shows like this. You might think that the best part is getting to travel to locations such as Las Vegas, San Francisco, Anaheim, and other exciting cities. It is great to be able to travel to those places, especially when you live in Minnesota, but there are many great things to see and learn while attending an industry trade show that are even greater than traveling to the city that hosts the show.

I believe the biggest benefit of attending a tradeshow like NPEW is getting the opportunity to network with companies in the process manufacturing industry. Shows like NPEW attract process manufacturers (food, beverage, pharma, nutra, etc.) from all over the world. Manufacturers and suppliers attend shows to make new contacts, expose their products to the marketplace, find new ideas and ingredients to grow their business, and more – and we go to be a part of that.  We provide business development insight, connect manufacturers with similar companies, and talk about how to take advantage of new technology to help grow their business. We are able to provide information so when companies are ready for an ERP system, they have an idea about what is available in the marketplace for things like formulations/recipe management, lot tracking, quality control, and financials.

Other benefits of attending industry tradeshows include industry seminars and workshops. Many of the manufacturers that attend these shows have regulations they have to adhere to like FDA, SQF, and BRC. Many of these seminars focus on new regulations related to process manufacturing. If a company has to adhere to these regulations or would like to get certified in one of these areas, we provide information on how an ERP software system like ProcessPro® Premier can help.

One thing I can’t forget to mention is the opportunity to learn about new companies and products coming to the marketplace. At many of these shows, we are able to sample many different types of food, beverages, and more. I have yet to return home from a tradeshow without a bag of goodies to share with others in the office.

We hope to see you at one of the many shows we attend ever year including:  Natural Products Expo West (and East), Private Label Manufacturers Association (PLMA), International Dairy-Deli-Bakery Association (IDDBA), Summer Fancy Food Show (and Winter), Institute of Food Technologists (IFT), Supply Side West (and East), National Restaurant Association, and Natural Products Association Marketplace.

by Tim Sands

ERP and “Coming of Age”

Where are you in the evolution of your company?

In my day to day work of Business Development I wade through multitudes of “suspects” on my way to finding and identifying prospects we can help.  One thing I find as I have discussions with prospects and research their situation is how software selection must have evolved over the years, how they arrived at their initial selection and what is happening now.

The start up.  More times than not, we discuss that at the time, in the beginning their company needed not much more than an accounting system and something to manage formulas, quality control, inventory would suffice and many times that ends up being excel spreadsheets.  They would plod along manually and things would go ok.

The small company. Years later due to increased volume, new regulations and enhanced risk they embarked on a software selection.  At this point often then they may get advice from outside consultants (many from the accounting world) or perhaps someone in financials in their own company – so the selection was driven from the financial side still and perhaps not manufacturing or if it was driven somewhat by manufacturing, they would search out a familiar name ERP (Enterprise Resource Planning).

The midsize. Present day they find themselves seeing their competitors catching or passing them by, often they are looking for an edge to help them improve production and manufacturing, get clearer reporting and the right system to bring them to all the next level.

The industry vertical.  At this point the customer does research and often finds that there are ERP solutions that “specialize” in one industry or another.  What does that mean?  Often, it will mean that an ERP vendor has experience and “reference able” companies in the same vertical.  The ERP vendor will also have Implementation Specialists who have experience in that vertical.  Finally the ERP vendor has proven the ability to meet the regulation requirements of that vertical, and has active user groups in that vertical.

The future.  As you go through your day to day work and are looking for an ERP partner, my advice would be to find out where you are in the evolution of your company and are you ready to choose the right ERP system for you?  If you are ready, choose an ERP solution that is in your vertical.  Check for things like: Does the ERP vendor specialize in my industry?  Has the ERP vendor proven they can meet my regulations? Can they provide me with documentation of that?  Do their implementation specialists have experience in my industry?  Can they guide me through this process?  Having awareness of all of these things should hopefully help you as you select your new ERP partner.

Resources: How to Choose an ERP for Process Manufacturers - White Paper Library

By: Tim Sands

The other day I was looking through some boxes in my basement and found some old books.  One was my Boy Scout manual from years ago.  I was reminded of the old Boy Scout Motto:  Be prepared.  It made me think of various conversations I’ve had while attending food focused trade shows or when visiting with prospects on the phone on the topic of being ahead of the game.  One of the common things I sense from these conversations is that some food manufacturers are overwhelmed with regulations such as HACCP (Hazard Analysis Critical Control Points).  As much as companies would probably like to ignore HACCP requirements, they really can’t.  Many clients think they’re too small, that those regulations don’t apply to them, or they are “fine”.   Well, food and beverage manufacturers are required by the FDA to implement HACCP. 

When we start to talk with manufacturers about systems, processes, and SOPs, many people are surprised to hear that ERP (Enterprise Resource System) can help with HACCP and lighten the overwhelming burden of outlining the entire plan from scratch.  Implementing ERP as a tool to adhere to HACCP regulations will help minimize risks associated with FDA audits and/or product recalls such as loss of brand loyalty, litigation expenses, or consumer disaster.  In addition, an integrated system with a QC (Quality Control) application can have predetermined quality standards set to specific acceptable levels of identified hazards. Anything exceeding those standards is pulled from production.   The same QC application will keep record of the tested quality of all incoming raw materials and outgoing finished goods.  An ERP system can help manufacturers specifically with tracking, storing, and retrieving required records.  In addition, an ERP system that has been validated in an FDA environment can ensure speed and precision of traceability requirements under HACCP.  Advanced ERP systems will also offer extensive search and reporting capabilities, data analysis, and lot tracking.  Real-time data availability and validation will satisfy the strictest FDA regulations.  Manufacturers can breathe a sigh of relief that an effective ERP system addresses the most complex and time consuming principles in a HACCP plan. 

Be prepared.  No matter how complex the world gets, something as simple as my old Boy Scout Motto still applies today.  Be prepared and help your organization survive and thrive for years to come.

By: Joe Blauert

Some mid-market ERP vendors are making some pretty outrageous claims.  Situations we often run into include ERP vendors claiming the ability to address the unique needs of every market. Claims like these can really only be justified by the large-market ERP vendors, such as Oracle and SAP. Those making these claims typically have a customer base that might number in the hundreds, yet the unique markets they address number in the dozens.  The truth is that their supposed “expertise” comes from a very limited number of companies in each of those markets, and in many cases their products only “fit” those customers because they have only implemented the most basic elements of the software.  If they claim expertise in markets that range from Agricultural to Construction to Electrical to Sporting Equipment (among dozens other markets), you only need to apply a little common sense to realize that they know “a little about a lot”, which does not constitute “expertise”.  If their focus encompasses such a broad range of industries, how is it possible to provide the depth of industry knowledge in sales, implementation, support and ongoing product development that makes it worthwhile to invest your money and your future in their product and business?  Any vendor can write a few lines on their web site and in their marketing material that sounds good, but it takes a truly focused vendor to provide people that know almost as much about your business as you do.  Which one would you rather entrust the future of your company with?

There are multi-billion dollar companies in the market that own multiple types of businesses in multiple types of market, and those large customers are best served by the multi-billion dollar ERP vendors.  If you’re not one those, however, you need to find someone who focuses on your type of business.  If the sales person does not know the difference between a bill of materials and a recipe, if a demonstration person cannot show you a mock recall report (down to the lot number of every raw material and every sales order on which it was ultimately included), if your prospective project manager cannot discuss how they personally addressed specific FDA, cGMP and HAACP needs in the last half-dozen food manufacturers, then you need to ask yourself if you are investing in right software.

To know if your specific requirements align with an ERP software capabilities, try some of these on-line resources and software selection tools:

FindAccountingSoftware.com

SoftwareAdvice.com

Top10ERP.org

TechMatch.Managing Automation.com

By: Tim Sands

There is so much change coming down the pike in the food manufacturing industry.  President Obama made history on Tuesday when he signed the FDA Food Safety Modernization Act.  What does that mean for you? Well, in general terms most likely it means more regulation, more checks and balances, and more oversight.  The law will require food manufacturers to perform tasks such as identifying areas of risk so that preventive measures can be instituted.  This means revisiting things like SOPs and securing mock recall plans. Being prepared for an actual recall will ultimately minimizing risks before a recall is necessary.  Food companies will need to have more accurate tracking abilities than ever before, and maintain solid cradle-to-grave records and systems to minimize or prevent potential food borne illness outbreaks. 

Instituting an ERP system, and getting help and guidance in establishing a recall protocol is one way to help solve these problems.  For more information on how an ERP can help get you prepared, attend our webinar on Jan 18^th or contact us directly at info@processproerp.com

We are also interested in hearing your response to these new provisions, post a comment below.

by: Rebecca Kempenich 

Are you interested in improving operational efficiencies while reducing cost and increasing customer satisfaction? We are and we are talking about it. Welcome to the ProcessPro Software Blog. We launched this blog to provide the process manufacturing community a resource to turn to find industry-related information, especially in the following areas: 

• Industry Best Practices in:
  ·     inventory management
  ·     customer fulfillment
  ·     distribution
  ·     materials management
  ·     transportation
  ·     warehousing
  ·     supply chain management
  ·     purchasing
  ·     planning & scheduling

• ERP Software Selection
• Software Technology & Architecture
• Implementing ERP
• FDA Compliance
• ProcessPro ERP Software FAQ

Weekly postings from our blog authors and industry experts will provide many ideas, opinions and discussion on how to improve your manufacturing business across the entire enterprise. Join the discussion. Tell us about the topics you are interested in. Post a comment below.