Manufacturing and Distribution Best Practices

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Best Practices are well known because they play a critical role in boosting profits and reducing costs. They are part of your “journey” by encouraging you to continuously improve your operations. They are also a way of thinking and acting and apply to every department. Over the next few months, we will be listing three best practices in each newsletter based on our thirty years of working with Macola® software.

Part 1

Part 2

Best Practices play a critical role in boosting your profits and reducing costs. They are part of your “journey” by encouraging you to continuously improve your operations in each department. They are also a way of thinking and acting. Below are this month’s best practices based on our 30 years of working with the Macola® software.

Inventory Accuracy

Set a goal for having 99% on-hand quantity accuracy. Cycle counting is tedious but will improve the accuracy of your annual physical inventory. Improving accuracy eliminates numerous day-to-day issues.

Creating new customers, inventory items, and vendors

Document in writing (with screenshots) how to key in new inventory items, customers, vendors, etc. Determine what data fields need to be populated and those that can be left blank.

Dates

Decide how to use the various date fields when keying customer and purchase orders. For example, which date field will be used to determine when an order needs to be shipped or when to expect delivery of a purchase order.

Codes to be used for analysis

Create a small number (ex. under 15) of customer types, product categories, material cost types, etc. from which you can analyze your operations.

Part 3

Best Practices play a critical role in boosting your profits and reducing costs.  They are part of your “journey” by encouraging you to continuously improve your operations in each department. They are also a way of thinking and acting. Below are this month’s best practices based on our 30 years working with the Macola® software:

Data Clean-up and Accuracy 

On a regular basis, close out fully received purchase orders and completed production orders so they no longer appear on your open reports.

Replenishment Methodology

When it’s time to replenish inventory via purchase order or production order, you need policies re: when to order and how much. Accurate vendor lead times, reorder levels, and safety stock levels require ongoing analysis.

Training

Someone needs to manage the initial and ongoing training of your staff to assure a smooth workflow and continuous improvements.

We welcome your feedback! You can write to us here.

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