Scanco's Inventory Management Blog

The Top 5 Features of MP2

Are you interested in transitioning to warehouse automation, but have no idea where to start? This month, Scanco is premiering a new label printing software called the MP2 to help you with this transition. Below are the top 5 features of our new label printing software:

Scanco’s Top 3 Steps to Greater Warehouse Efficiency in 2012

We have many clients come to us wanting to implement a barcode solution in hopes that it will solve every problem they have in their warehouse. Unfortunately, barcoding isn’t a ‘be-all, end-all’ solution, but rather is the last step in a multi-step process and overall commitment to efficiency. Before you consider implementing a barcoding solution there are several steps you can take to get your warehouse in shape prior to automation. In this article we will go over some options with you in hopes that they will assist you in getting your warehouse to the level of efficiency you desire in the coming year.

Step #1: 3 Ideas for Organizing & Maintaining Your Warehouse

More often than not, when we walk into a warehouse, we notice that nothing makes sense. From bin locations that increase workload to picking methods that aren’t appropriate for the industry, there many ways in which a company’s efficiency is being decreased by their current processes. If you suspect that your processes aren’t at the level they should be, you may wish to:

A. Revisit Bin Location Organization

You should consider reviewing the overall organization of your warehouse annually in order to maintain maximum productivity. If you have been ‘stashing’ new items wherever they fit for the last several years it is likely you are now experiencing decreased productivity as a result. While it may seem like a hassle to re-organize everything, consider the amount of time you’ll save when you improve picking times.

A good rule of thumb when organizing your warehouse is to put higher volume items in the easier to reach areas as well as in a location closer to your shipping area (if it is appropriate to do so), and lower volume items in bin shelving further away.

B. Take a New Look at Picking Methods

Examine your picking methods and determine whether they are still appropriate for you. Keep in mind that there are many options to choose from including:

• Single order
• Multi-order
• Batch picking
• Zone picking
• Etc.

C. Consider Implementing Cycle Counts

Cycle Counting is a great alternative or addition to a yearly physical count. It is a process with which you count inventory in regular intervals throughout the year which keeps your back-office systems more accurate than relying solely on an annual count. Many who implement cycle counting often find that they can eventually do away with the annual count altogether.

Sage MAS ERP requires you to freeze your inventory during counting, so many mistakenly believe that they can only do their counting if they shut down operations. However what you may not know is that you also have the ability to freeze only certain product lines at a time while keeping others active which allows you to implement a cycle counting technique.

There are two main types of cycle counting to choose from. You will want to choose whichever is more appropriate for your industry.

• Geographic based cycle counting involves starting at one side of your warehouse and systematically working your way to the other end. Doing this several times throughout the year will not only enable you to keep inventory numbers accurate throughout the year, but also discover misplaced or ‘lost’ items as well.

• The ABC Method refers to counting by the categorization of inventory. High volume items are handled more often resulting in a higher likelihood of inaccuracies, while low volume items are handled less leading to more accurate data.To implement the ABC Method you will first categorize all of your inventory deciding which fall into the ‘A’ (high volume), ‘B’ (medium volume), and ‘C’ (low volume) levels. You’ll count high volume items more often and low volume items less. Your schedule may look something like this:

• Level A – Count once per month –or- quarter depending on the size of the inventory
• Level B – Count every quarter
• Level C – Count every 6 months
• In each instance you’ll want to divide the stock up so that your staff can complete a portion of counting every day or week to keep it manageable.

Step #2: Implement Manual Processes and Increase Employee Accountability

We know that it can be very difficult to expect your warehouse staff to truly care about the company. Many see their jobs as just a paycheck and have little desire to put in more effort that necessary. However if you establish, communicate and enforce specific warehouse rules – you are more likely to get a bit more effort and a cleaner process. However, sometimes simple communication just isn’t enough. This is when you may consider implementing incentives. Like it or not, people are motivated by what’s in it for them.

Step #3: Implement Barcoding Automation

Before you implement, or even look at a barcoding solution, you should make sure Steps 1 and 2 are complete and running smoothly. Once you’ve properly organized your warehouse, implemented the best picking methods and cycle counting techniques for your industry, and established clear and disciplined manual systems – you are ready for barcoding to take you to the next and highest level of efficiency. Specifically, it will help you with:

• Increasing the speed with which you can input information
• Improving the integrity of your data
• Developing greater accuracy of shipments
• Enhancing employee productivity
• And increasing the speed, efficiency and precision of your cycle / physical inventory counting process.

While Scanco specializes in off-the-shelf barcoding solutions, we also are able to help you with improving warehouse organization and establishing better overall processes. Specifically we are able to help you:

• Review your current distribution processes
• Recommend operational process changes
• Conduct product training for new staff
• And advise on ideal hardware and software configuration.

Contact Lauren today at 234-542-6084 to schedule an on-site consultation so that you can get your warehouse efficiency to the levels you desire in 2012!

Stop Shipping Errors and Reduce the Cost of Mis-Shipments

The cause of a mis-shipment can occur anywhere from your receiving dock to the customer’s door, and everywhere in between.  In order to stop shipping errors, the entire process from start to finish must be thoroughly examined. To this end, one Aberdeen study states:

To truly break through the 99% accuracy barrier, companies need to realize that accuracy starts with put away, returns processing and replenishment—the right item must be placed in the bin location to be begin with to ensure that it is selected correctly later in the process.*

The financial backlash resulting from miss shipments can be quite high because they affect so many aspects of your business. Consider the following:

• The extra processing required to fix mistakes.
  • The amount you have to pay employees to ship out the product each time, not to mention returning the wrong one back to the proper location within your warehouse.
  • The costs incurred by your customer service department in taking the call from the customer and setting up the return.
  • The amount of time your accounting department spends updating your financial system.
• The costs you may incur trying to keep the customer which may include discounting or completely reimbursing their item, and  shipping the correct item for free, often via an expedited method.
• Lower customer satisfaction levels, reducing customer retention rates.
• Acquiring new customers to replace the ones you lost – which according to industry estimates may reach up to $3,000 per new customer.

A perfect order is one that is: complete; delivered on time; damage free; and has the correct documentation pricing and invoicing information. Studies show that companies with perfect order rates (which is anything over 80%) are up to three times more profitable than those who maintain a 60% average. While achieving a perfect order status may seem difficult, it is a crucial goal to keep striving toward.

There have been several enhancements in the areas of scanning, digital imaging, and RFID devices that can help you implement a more streamlined process in regards to:

• Improving on-time delivery by reducing the time to receive, ship and validate items.
• Increasing warehouse efficiency of order completion by allowing your staff to scan products rather than input data by hand.
• Ensuring accurate invoicing and documentation through a reduction in the errors caused by manual data entry.
• And more!

If you would like to see how a Barcode Scanning Solution may help you improve the efficiency of your shipping process, click here to use our ROI Calculator.

*Aberdeen Study: What’s Really Working For Pallet, Case, and Piece-pick Operations?

6 Tips to Planning an Efficient Year-End Physical Inventory Count

From complete accounting records to stock levels you can trust, accurate inventory records are vital to the success and profitability of your company.  The accuracy of your inventory data directly impacts stock levels, customer service, employee theft deterrence, and more. In order to maintain accuracy, many companies perform a yearly inventory audit.  Dreaded by most, annual physical inventory counts tend to conjure up memories of long hours spent in excruciatingly hot or unbearably cold warehouses trying to count every-single-last item in stock. Fortunately, much of the pain within this process can be avoided by simply planning ahead!

With accuracy being the goal, the annual count will only be successful if done right. The following 6 pre-planning tips will help you ensure a smooth process and a precise end result.

1. Choose a Date

There are several factors to consider when selecting the date for your year-end count.

a) The best time to perform a physical inventory is when you are closed for business as it will make your count more accurate. If this isn’t possible, choose a day and/or time of day when business tends to be slow, and inventory stock levels are at their lowest point.

b) Avoid doing inventory on days when employees may be distracted – this includes right before or after a big holiday.

c) Save the date, and notify staff members as early as possible.

 

2. Select a Method

a) Bar-Code Readers

This is by far the easiest and most accurate way to perform an inventory count. While there is an initial investment required to purchase handheld barcode devices and implement the technology, many companies see an ROI in less than 18 months.  Bar-code technology can assist you in reducing your physical count time and resources by 75%-80%. This means an inventory count that previously took a week behind closed doors can now can be completed in a matter of hours. This method removes the necessity of two man teams and instead enables just a single person with a handheld to count an entire section of your warehouse. In addition, it eliminates manual data entry and clerical errors because the counts can be downloaded directly from the bar-code readers into your computer. If your software system supports bar-code technology, the benefits will most likely outweigh the cost.

b) Count Cards

Either simple index cards or carbon copy sheets which denote the product and bin location, count cards should be sequentially numbered and placed on shelves or in bins right before the commencement of the physical count. This method is organized and quick (for a manual process), because counters can go location by location counting and recording inventory. The carbon copy option is ideal because once the inventory count is complete you can leave one copy with the merchandise and forward the other to your accounting department.

If you choose to use count cards you may find it helpful to provide counters with supplemental colored cards that can be used to record misplaced merchandise which can later be easily located and moved to its proper location.

c) Count Sheets

This is the cheapest method for performing an inventory count, but it is also the least accurate and most time consuming. Count sheets are pre-printed lists of inventory pulled from your company’s computer system. Generally those that use this method designate two man teams (with at least one experienced employee per team) and assign them different sections of the warehouse. The more experienced team member should do the counting while the novice should be in charge of recording. The staff members then find, count and compare merchandise on hand against the numbers recorded on the list.

3. Go Shopping

Depending on the method you choose, you’ll want to make sure that you have all of the appropriate supplies necessary to complete your year-end inventory count on hand. This may include sharpies, pencils with erasers, white/colored index cards, working bar code readers, clipboards and more.

4. Communicate with Staff Members

It is crucial that you meet with staff members ahead of time to explain your chosen method and inventory counting process. If you are concerned about internal fraud you may consider scheduling counters in different areas of than where they typically work. This will help to thwart any ‘theft cover up’s’ that might keep your inventory counts inaccurate.

5. Organize Before Counting

This is perhaps one of the most important parts of the pre-planning process. As close to the selected physical count date as possible, have your staff go through your warehouse and put everything in its proper place. Further, you should have a designated location where damaged and/or obsolete items found during the clean-up process can be placed – that can be dealt with appropriately by management.

6. Backup, Backup, Backup!

Just to be safe, it is always a good idea to create a backup of your database before you begin the inventory count, again before you apply the physical inventory count changes, and a third time after the changes have been implemented.

We hope these six tips will help you better plan and prepare for your year-end physical inventory count. Doing the appropriate amount of pre-planning will help you streamline this tedious process and achieve the desired end result of accurate inventory data which will ensure greater customer service levels and long-term success!

Scanco Virtual Tradeshow Recap

The Scanco Virtual Tradeshow held last month generated great interest within the Sage community and we’ve received very positive feedback. While at Sage Summit, and during the webinar held for those who couldn’t travel to Washington D.C., we were excited to announce the certification of another RF handheld device as well as spotlight the release of the Scanco Picking application.

The Motorola MC55 is the latest addition to the rugged handheld line up backed by Scanco. It offers state of the art wireless technology and the durability required for warehouse environments at a lower price point than comparable units.

The Scanco Picking application integrates with the ACS Multi-Bin Allocations Feature. Now Scanco 4.40 customers can utilize the scanner to transfer items for a specific Sales Order to a staging bin location where they can later be packed in to boxes for shipment. The handheld validates that the user is picking the correct items and quantities for the Sales Order. When the transaction is completed on the handheld and imported in to MAS, the items are properly allocated on the Sales Order making the packing process even easier.

Barcode Scanning Technology for Today and Tomorrow

Implementing a barcode scanning solution can greatly enhance your business process. From improved inventory accuracy, reduced shipping errors and increased time efficiencies, not to mention the virtual elimination of duplicate data entry – the benefits are endless! The best part is, with our Automation Series System, you have the benefits of multiple technology options – right out of the box - which allows you to start small and increase as you grow.

Starting Out With Batch Technology

With a somewhat challenged economy, you may prefer to start with Batch Technology because it provides immediate automation while staying within your budget. This option is less expensive and easy to implement because it only requires a wireless hotspot for data upload rather than an entire network. 

How it works:

Data is downloaded onto a handheld scanner, and later uploaded from the device into your computer system. An added benefit to Batch Technology is that it allows you to easily perform transactions off-site because you don’t have to be in the presence of a wireless network to do your scanning.

Growing Into RF Technology

As your company grows– you may find that RF Technology will be more in line with your business requirements as it provides you with virtually flawless data and anytime access to it.

How it works:

RF Technology directly connects your handheld devices to your database through a wireless network, allowing all data to be passed back and forth in real-time. Verifying items as they are counted, RF Technology provides immediate status updates to your back-office personnel. This access to consistently up-to-date inventory information provides for improved efficiencies organization-wide. From a greater number of perfect shipments and a reduced number of back orders, to improved customer service levels and real-time access to stock level information – y our employees will always have what they need to perform at optimum levels. An added benefit to RF Technology is that it is ‘smart’ enough to know when an item is lotted or serialized and only prompts when that applies.

Either one of these options will greatly reduce duplicate data entry requirements and improve data accuracy. If you’d like to discuss your specific needs and the options available in more detail – give us a call! We’d be happy to go over the best technology to fit your budget.

To implement either Bath or RF technology or learn more about the barcoding possibilities for your business email our expert, Lauren Foote at lauren@scanco.com or call her at 234-542-6084.

Scanco Helps Make Scan by Cart Technology a Reality

We are thrilled to share with you a recent success in the development of new barcode scanning technology to help Young's Plant Farm improve their shipping process.

Practical Software Solutions, Inc., a Sage Authorized Partner, announced today that Young's Plant Farm of Auburn, Ala., won first place in the Innovation category for the 2011 Sage Customer Awards. Young's teamed with Practical Software Solutions to add Scan By Cart capabilities to Sage ERP MAS 500 Grower Vertical.

"We're honored that Sage recognized the Grower Vertical module for a second time," said Vince Stamey, Chief Executive Officer of Practical Software Solutions. "Grower Vertical is a credit to how flexible Sage ERP MAS 500 is, and how businesses can have it tailored to meet the needs of their customers. We congratulate Young’s Plant Farm for winning this highly coveted award."

Scan By Cart was developed after one of Young's Plant Farm's big-box retailers changed its UPC system to give unique codes for every plant variety and color. Instead of having one UPC code for one 4-inch annual potted plant, for example, the retailer now has more than 20 UPCs to account for the different combinations. Scan By Cart rebuilds sales orders and generates all the shipping orders, documents, and labels as the product is loaded onto the truck. This is done with the use of hand-held devices and bar code technology.

Young's Plant Farm approached Practical Software Solutions with their concept for Scan By Cart. Together with Scanco, the leading hand-held device development company for Sage products, Practical Software Solutions made Scan By Cart a reality.

"This has reduced our customer receipt errors to less than 1 percent," said Bryan Young, general manager of Young's Plant Farm. This is especially important, Young said, when dealing with a live product that can't be restocked if the order is sent incorrectly.

"Bryan Young came up with the solution to the problem," said Greg Lafferty, senior account executive with Practical Software solutions. "He came to me and said, 'There has got to be a way to solve this. Can't we just ...' and described the solution he envisioned. We refined it, but he engineered the whole thing."

This marks the second time a Practical Software Solutions customer was honored for their work on Grower Vertical. In 2008, Metrolina Greenhouses of Huntersville, N.C., won first place in the Customization category for the Sage Customer Awards for their work with Practical Software Solutions in developing the Grower Vertical module. Grower Vertical provides a customizable, scalable, and full-featured enterprise management system designed for specific needs of the horticulture industry.

Young’s Plant Farm is a family-run business founded by Gene Young in 1961 with a 1,500 square foot greenhouse in his backyard. It now features 1.5 million square feet of greenhouse production area along with 35 acres of outside growing area. Young's Plant Farm supplies ornamental plants to big-box retailers in Alabama, Mississippi, Louisiana, and North Florida.

Scanco / Spectrum Joint Marketing Program

Scanco has teamed up with The Spectrum Services Group to offer an even greater value to the Sage Partners we work with. If you currently offer Scanco products and are in need of some marketing help - this is the offer for you!

The Spectrum Services Group is a full service marketing company specializing in helping small and mid-sized companies grow their business through a continuous marketing campaign. They offer personalized service and have a vested interest in the success of their clients.  

Scanco / Spectrum Joint Marketing Offer

More on The Spectrum Services Group

Meet Scott Yoder, East Coast Sales Associate for Scanco

Scott Yoder joined the Scanco team in May 2011 as an East Coast Sales Associate. You’re likely to find him educating new and existing customers on the software and equipment that Scanco provides or seeking to learn more about end-user operations in order to recommend the solution that will provide the most value. Scott was really impressed with Scanco from the beginning and comments, “This company is the perfect balance between a professional business and a relaxed atmosphere. For example, we are very serious about the work we do, taking care of our customers and making sure their needs are met while at the same time existing within a relaxed environment. This combination is very conducive to performing at a high level. I am excited to be a part of a company like this, where I feel I can not only be successful but also enjoy what I do.”

Prior to coming to work for Scanco, Scott worked for a company that developed transportation technology software. Before that, he worked for L-3 Communications, a defense contractor who also had commercial, military and government companies. He explains, “While attending the University of South Florida I was offered an internship at L-3, learning the sales process and working with the order administrators. When I graduated in 2006 and earned my Bachelor’s degree in General Business Administration, they offered me a job. I worked for the Sarasota branch which was a manufacturer of black boxes for airplanes.”  

When Scott isn’t at work, he’s almost guaranteed to be doing something active. Born and raised in Florida, Scott enjoys hitting the gym, playing tennis, biking or just hanging out at the ‘best beach in the country’. Scott also enjoys traveling and of his trips comments “I’ve been to England, Amsterdam, Norway and Sweden on one big trip in 2006.  My favorites were Norway or Sweden because of the beautiful countryside – lots of hills, and old castles. It was beautiful and clean and had a lot of history to it.” When asked what he’s most proud of he says, “I’d have to say I’m very proud of my parents. The way they raised me and the values I learned from them have definitely helped me in both my personal and professional life.”

Meet Erik Rohrmann, West Coast Sales Associate for Scanco

Erik Rohrmann started with Scanco in April 2011 as a West Coast Sales Associate. Wearing several hats throughout the day, you may find him discussing Scanco’s offerings with new leads, speaking with different partner groups throughout the country, helping with demos and more. Of his new position Erik elaborates, “I was introduced to Theresa here at Scanco through my fiancée, and I was really impressed with the company and liked the culture so much that I just jumped in with both feet! It’s been extremely interesting to get a behind the scenes look in to the operations and business processes of the manufacturers and distributors that we work with. Barcoding technology has begun to grow and take over the day to day operations of most industries. Being able to see how the different systems interact and how they are used on an on-going basis by employees is incredibly powerful. Showing companies how they can get the most out of their time and system by becoming exponentially more efficient is something Scanco has been doing for over 20 years. I’m very excited to help companies reach their full potential through the use of barcode technology.”

Erik earned his Bachelor’s degree in Psychology from the Virginia Military Institute. He reflects, “Going to a military school has played a pretty big role in my life. I was first introduced to the Virginia Military Institute through my high school lacrosse coaches. With a division one team, they were a great option for me to continue in sports. Upon visiting the school I was immediately impressed with its history and uniqueness.” As an old civil-war fort, turned college campus, the school has a really old feel and forgoes some of the modern accommodations you may find elsewhere. “You won’t find TV’s or air conditioning at VMI,” laughs Erik. “Though it was more of an experience in discipline and hard work than of fun and parties, I couldn’t be happier with my decision to go there. I developed a lot of great relationships with a wide range of people from all over the world, and am proud that I chose a somewhat harder road.”

Upon graduating Erik worked in the finance industry for a couple of different hedge funds based out of New York and Connecticut for several years.  After that he worked for the Republican Party helping set up for their 2012 convention in Tampa. “I thought it sounded like a good way to make some contacts and meet some influential folks. I ended up more on the operational side helping build up vendors for the event. It was a really great experience.”

When Erik’s not at work you’re likely to find him playing and coaching lacrosse or hanging out at the beach. “I was the captain of my college lacrosse team for two years and I really enjoy any opportunity I have to play and work with the kids or be outdoors.”