System 2000 Enterprise Supply Chain Management Software Solutions
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CASE STUDY FRED C. GLOECKNER BULB SEEDS & PLANT SUPPLIES
After using the new system for first year, the physical inventory showed 99% accuracy as per the accounting firm's certified audit.
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Background & Challenge:
When Robert Devlin, Fred C. Gloeckner's Flower Seed Division Manager, came aboard to run the seeds division he inherited an outdated computer system that was in disarray.
The following issues resulted from the outdated computer system:
- Inventory tracking was not kept and seeds were sold without being able to verify the germination date. This resulted in obsolete inventory. The only time an accurate inventory was available was at year-end, when a physical count was taken for the auditors.
- The quote's process that was a very complicated procedure was done manually and it took three weeks before a quote could be produced.
- The warehouse personnel, who did not have an accurate inventory system, picked what was available off the shelf at the time of shipment and substitutes were often shipped. Because of the manual inventory adjustments, customers received short shipments or substituted items.
- The invoicing process required extensive manual maintenance that resulted in invoices being generated weeks or months after the inventory had been shipped.
- Because of the long invoicing cycle, customer service personnel could not give adequate information to Fred C. Gloeckner's clients when they inquired about their shipments until the invoice was generated.
Solution:
- A quote processing module was written using advanced algorithms for the entire quote or selected item lines. This resulted in the end user having the ability to price, discount or mark up the quote in a real time environment. After the quote is completed, it can be downloaded to a spreadsheet and emailed.
- Bar-code the inventory packets when the seeds packets are produced from the bulk inventory or received from the supplier at the warehouse. When the seed packet's bar-coded label is scanned, the system is updated. These steps resulted in instant availability of the inventory to customer service personnel. Cycle inventory now takes place on an on-going basis and any adjustments that are made are instantly reflected in the inventory level.
- Shipment: at shipping time, the picker scans the packets' bar-coded label for accuracy and the system confirms that the right items and quantity are being shipped. At this point the invoice file is updated and the orders are ready to be shipped.
Results:
- Quotes that previously took three weeks to generate are prepared within several hours in a spreadsheet format that can be emailed to the supplier, sales rep, or customer.
- Inventory that was never accurate is now being scanned when produced from the bulk inventory or received from the supplier in the warehouse and instantly reflected in the system.
- The invoice cycle that took weeks or a month after extensive manual effort is now being ship-confirmed at the time the inventory is shipped and the invoicing is done within one to two days.
- After using the new system for first year, the physical inventory showed 99% accuracy as per the accounting firm's certified audit.
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