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5 Important Inventory Analytics Tactics for Retailers

January 3rd, 2012 by Devender Aerrabolu

The retail industry has always been competitive with very slim profit margins. Retailers can increase their sales, their profits, their relationships with their customers, and their competitiveness by effectively and efficiently managing their inventory. Historical sales data is just as important as accurate sales forecasts in spotting trends and making critical business decisions. Balancing inventory to optimize and maximize ROI entails understanding the marketplace, effectively reducing warehouse costs and customer returns, and improving sales.

Existing applications for reporting and analyzing data are inflexible and inefficient. Many retailers are moving to cloud-based SaaS (Software-as-a-Service) applications for business intelligence analysis and evaluation of business metrics. SaaS and cloud-based solutions can be implemented across all departments, including purchasing, distribution, and point-of-sale, and can be accessed from any location, computer, or mobile device. Cloud-based business intelligence technology has the capability to assist in the management of inventory more rapidly, more efficiently, and more effectively; thereby boosting profits, enhancing the competitive position, and improving customer relationships.

Inventory management is a key component to the success of retailers and several capabilities need to be available to understand the natural fluctuations of inventory and customer buying patterns.

1)Cross-functional data visibility for orders, shipping, receiving, distribution, customer returns, and marketing and advertising promotions.
2)Clear and real-time views of sales trends to maximize and optimize the product mix, including SKUs, categories, and store-by-store or region-by-region sales data.
3)A combination of metrics reports including forecasts sales, invoice aging, point-of-sale data for each reporting period—weekly, monthly, or quarterly.
4)Management capability of warehouse storage needs and inventory supply needs based on past and future sales data.
5)Strategic just-in-time inventory management that also does not negatively impact the supply chain or revenues.

SaaS-based inventory management systems does not require in-house IT resources for installation or maintenance of the applications, and allow for rapid deployment of applications. Many retailers are moving to on-demand business intelligence for their inventory management needs in order to realize cost savings, increase the speed and flexibility of data retrieval and analysis, and reduce dependent on location-based IT departments.

Posted in Applications, Business Processes, Ecommerce, Engineering Change Management, Hosting, Internet Retail, Physical Inventory, SaaS, Smart Warehouse, SMB, Systems Integration | No Comments »

Innovate Your DFR and DPT Practices

December 20th, 2011 by Devender Aerrabolu

Storage I/O solutions, in considering cost-effectiveness and best practices, address primary storage data footprint reduction (DFR) as well as support for data protection and recovery (DPR). DFR implementation allows more data to be stored in a smaller footprint and includes archiving email, databases, and file systems, real-time data compression, storage tiering, and thin provisioning. The tools and best practices policies of DPR include daily backup and restore, business continuity, disaster recovery, and meeting Service Level Objectives (SLOs) archiving requirements, recovery time objectives (RTOs), and recovery point objectives (RPOs).

The IT departments of MBEs are faced with supporting enterprise growth while simultaneously maintaining Quality of Service (QoS) and managing budgetary constraints. Data must be protected from various internal and external threats and disaster recovery and restoration capabilities must be effectively enhanced. Additionally, reliability and accessibility of data must constantly be improved.

Innovation and optimization, focusing on the source of DPR challenges and the performance of DPR and DFR technologies will help enterprise and MBE IT departments meet the challenges and demands of data storage, data protection and recovery, and RTOs and RPOs in a cost-effective and timely manner.

•Real-time compression leverages performance rates and response times and enables more data to be stored in a more dense data footprint.
•DFR techniques can be re-focused from downstream storage to complementary active and online reference data primary storage optimization, while maintaining and improving performance.
•More effectively utilizing primary storage resources such as cache and premium tier 0 storage—another use of real-time compression, can accomplish expansion of the current data footprint.

Any innovative changes must be seamless and transparent while providing interoperability with the various IVS storage products while co-existing with current DR techniques.

The IT professional can produce real ROI results for the company through innovation and optimization initiatives that maximize and enhance DFR and DPR practices while reducing the costs to manage the resources necessary.

Posted in Applications, Business Processes, Engineering Change Management, Systems Integration | No Comments »

A Future for Network IDS/IPS

December 6th, 2011 by Devender Aerrabolu

Organizations seek to protect their networks from external and internal threats have utilized a variety of security strategies, including network-based intrusion detection and prevention systems (IDS/IPS). Over the years these systems have evolved from supplying information to security professional about potential attacks to also including details about the overall effectiveness of defenses against any attacks. Today, such information is considered essential and mandatory components of an organization’s network security strategy and is regulated and audited. Additionally, such information can be used as forensics data to prosecute attackers.

As with all systems technologies, network IDS/IPS trends continue to evolve, affecting organizational data security planning in several ways:

•Critical security and compliance systems should be able to identify, monitor, and inspect the installed client applications on the network.
•Security personnel value the ability to have ready access to a range of contextual data including network behavior, user identity, potential attacks, and defense mechanisms.
•Virtual networking environments are supported by visibility into the actual environment and its operations.
•Selection considerations, including consolidation benefits, real-world performance metrics, network security requirements, technology refresh cycles, and budgetary constraints.

According to an October 7, 2011 article by the Gartner Group titled “Defining Next-Generation Intrusion Prevention”, there are six critical minimum attributes that next-generation intrusion prevention systems should have:

1)An inline, bump-in-the configuration that does not interrupt network operations.
2)A set of standard first-general IPS capabilities that support vulnerability- and threat-facing signatures.
3)Functionalities including application awareness and full-stack visibility that identify applications and enforce network security policy at the network layer.
4)Context awareness functionality to bring information from all outside sources to improve blocking decisions and/or modify the blocking rule sets.
5)Content awareness functionality that inspects and classifies inbound executable files including Adobe PDF™ and Microsoft Office™ files.
6)Agile engine capabilities that support upgrade paths to integrate new information feeds and new techniques as future potential threats emerge.

Organizational security teams are responsible for addressing the diverse functional requirements within and throughout the network. Additionally, security personnel must manage and balance different technology life cycles and acquisition schedules. It is vitally important to the entire organization that the implemented network intrusion prevention and detection systems keep pace with the ever-increasing threats to technological and security threats faced today by enterprises of all sizes.

Posted in Applications, Business Processes, Systems Integration | No Comments »

ERP System Solutions

November 16th, 2011 by Devender Aerrabolu

When you successfully implement a flexible ERP system, you equip your manufacturing operations team with the best solutions that provide relevant real-time data and improve rapid responses to any business changes—whether your critical data resides on one or multiple systems. ERP allows you to execution processes and streamline your operations for the most efficient change management.

Refining your business processes to be more “disciplined” actually allows them to be more “flexible” as opposed to “rigid”. This flexibility makes your data more visible to relevant decision-makers, speeds up just-in-time ordering, and improves the use of critical business resources. Your enterprise can respond to trends, minimize costs, increase profit margins, and reduce delivery times.

Each member of your management team benefits from an integrated ERP system, improving the day-to-day productivity and overall effectiveness of the entire management staff.

The Sales Manager: An effective ERP allows the sales manager to focus on delivering orders, generating reliable sales forecasts, improving the sales performance of the field sales team, and providing excellent customer service.

The Supply Chain Executive: A flexible ERP systems frees the supply chain executive to focus on the core responsibilities of supporting operations, reducing material costs, and servicing the needs of customers.

The Plant Manager: Plant managers can utilize an effective ERP system to focus on plant operations, improve the productivity of the labor forces, improve quality, and meet the required customer service levels.

The VP of Operations: A flexible ERP system helps the VP of Operations to access the real-time data needed to make the most effective decisions, balance the allocation of resources, provide consistent customer service, and manage costs.

The Finance Executive: A successful ERP implementation provides the Finance Executive with the tools necessary to automate the data collection process, focus on initiatives that improve the financial health of the enterprise, and enhance cash management and regulatory reporting.

Changing your company from manual processes to a flexible ERP allows you and your management staff to rely on your business processes to manage your operations.

Posted in Applications, Business Processes, Change Log Management, Compliance Regulations, Engineering Change Management, Physical Inventory, Quality Assurance, Shop Floor Control, Smart Warehouse, Systems Integration | No Comments »

The Case for an Effective ERP System

November 2nd, 2011 by Devender Aerrabolu

Your critical business data is one of the keys to your business growth. The ability to quickly respond to business changes depends on your business processes. A variety of changes could be affected by the capability of your enterprise to be proactive, including customer delivery schedules, new product introductions, global business trends, or supply chain expansion.

A complete reconstruction of your business processes begins with a successful implementation of an effective ERP system. There are two major categories of changes realized with a flexible ERP system:

1)The current divergent systems can be automated and linked to enhance the movement of your critical business data and to provide your executive management with real-time reports for the highest level of decision-making.
2)Highly disciplined workflows can be created that will implement the consistent processes required for the most reliable outcomes irrespective of any business changes.

An integrated ERP system will have a positive impact on your manufacturing operations. Each of the core business units needs its own documentation that points out any inefficiencies associated with your present change management procedures and can yield cost-effectiveness. The management team associated with those core business groups: the sales executive, the finance manager, the plant manager, the operations manager, and the supply chain executive will have access to the necessary insight for the most advantageous synchronization of all systems.

Many small- to mid-sized enterprises still rely on manual creation of business data integration. There are a variety of issues that impact your continuous business development, including managing your profit margins and increasing your ability to handle any changes to your enterprise and your effective response to competitive pressures.

Posted in Applications, Business Processes, Change Log Management, Physical Inventory, Shop Floor Control | No Comments »

Embracing Digital Resources in your Enterprise

October 4th, 2011 by Devender Aerrabolu

In order for the enterprise to successfully incorporate digital channels into the overall business strategy, the marketing department must work with the IT department to bring and keep digital channels to the highest levels possible. If the planning and implementation of a digital strategy is not structured properly, then both the marketing department and the IT department can run into potential problems such as: inconsistent branding, wasted resources, and limited impact on the business goals and objectives.

Many companies today, especially those who sell directly to the end customer, have Facebook pages, Twitter accounts, and email-marketing campaigns. Retail enterprises also allocate a major portion of their marketing to digital channels and design and maintain e-commerce sites. However, often the efforts of the disparate departments of an enterprise yield disparate results that add no value to the customer experience.

When striving to keep branding consistent, the digital marketing initiatives complement the overall brand and “fill in the gaps” in the customer life cycle. Digital marketing can also actually reinvent the customer relationship by adding value to direct consumer connection to the brand.

It falls upon the chief marketing officer (CMO) of the enterprise to embrace and manage the key components of the digital strategy and ensure that all digital efforts align with the business goals and objectives. Several initiatives can be adopted:

•Digital marketing can be aligned around specific consumer groups instead of just audience demographics.
•The digital marketing campaigns can be synchronized around the life cycle of the consumer.
•The CMO can utilize measurable business intelligence analytics supplied by the chief information officer (CIO) to optimize direct consumer responses to the marketing efforts.

The CMO who designs and implements a successful enterprise-wide digital marketing strategy considers how digital will fit into each stage of the consumer life cycle, integrates the customer relationship into the branding operation, and transforms the customer experience.

Posted in Applications, Business Processes, Ecommerce, Internet Retail, Systems Integration, Web Development | No Comments »

Computerized Maintenance Management Systems

August 16th, 2011 by Devender Aerrabolu

Facilities management includes scheduling regular maintenance and the costs of keeping the production floor running smoothly. Computerized Maintenance Management Systems (CMMS) automate all the processes and information required by facilities managers. CMMS is also called Enterprise Asset Management, and is a software solution package that maintains a database of information about all of a company’s maintenance operations for their assets and all associated costs.

A comprehensive CMMS or EAM solution provides:
*        the ability to keep track of each piece of equipment owned or leased by the company.
*        the ability ti track human resources.
*        the ability to enter and track the locations of all equipment.
*        detailed information of safety plans for the production floor.
*        the ability to track inventory.
*        the ability to track and manage all aspects of work orders
*        the ability to quickly and easily run reports.
*        the ability to provide work history for all facilities locations and equipment.
*        the ability to requisition any and all materials for work orders.
*        the ability to keep track of existing maintenance contracts
*        the ability to provide key performance metrics for the maintenance department.

During the evaluation process before investing in a CMMS or EAM solution, the decision makers should consider the Return on Investment (ROI) and run real-world tests specific to the organization; only the modules actually needed should be purchased.

The CMMS or EAM solution should not be developed in-house; many solutions are already available through vendors. The solution purchased should be flexible and easily modified. Ensure that the data on the existing system is easily transferred to the new system. The solution provider should be experienced and have the capability to offer full support, including installation, testing, and staff training.

Another major decision is whether the chosen CMMS solution will be web-based or on-site. Time should be taken to perform a cost-benefit analysis on the pros and cons of selecting a web-based system versus an on-site installation.

Posted in Applications, Business Processes, Hosting, Physical Inventory, Shop Floor Control, Systems Integration | No Comments »

Enterprise Asset Management

August 2nd, 2011 by Devender Aerrabolu

Manufacturing facilities are comprised of very complex and expensive assets. Enterprise Asset Management (EAS) software helps senior management to protect those assets by ensuring that the necessary maintenance schedule is adhered to and that the investment is protected. Best practices of EAM installation and implementation include several ideas that help enterprises to maximize the output of their assets.

IT systems that are used to manage asset data should allow for organization-wide information sharing and knowledge retention. In conjunction, the EAM software must deal with the asset lifecycle phases including planning, engineering, maintenance and operation, and eventually the decommissioning of the assets.

The EAM application should be opened to vendors and suppliers such as engineering firms and maintenance contractors who work with the enterprise. This will allow better and more efficient communication and scheduling. The EAM application will also reduce repeated data entry into enterprise resources planning (ERP) applications and/or computerized maintenance management (CMMS) applications. Real-time data entry, on the other hand, provides better coordination between the contractors and the internal enterprise maintenance personnel and ultimately more efficient use of the assets.

An effective EAM package will support plant design and engineering during the often years-long lifecycle of an asset. The EAM software can assist the maintenance department of the enterprise to manage and record all data from the various projects it is responsible for on a daily basis.

During the evaluation process of a potential EAM solution, it is important to determine if incorporating enterprise 2.0 features that will contribute to an open, communicative environment for the sharing of ideas and expertise. Additionally, decision-makers should evaluate the usability enhancements that provide managerial support for real-time maintenance tasks.

Lastly, EAM solutions should be implemented as a part of a broader set of applications that capture data failures, schedule people, projects, and materials, and outline purchasing requirements–leveraging the functionality of the EFP applications. The selection of a effective EAM software solution to manage assets can enhance and improve the value of the enterprise.

Posted in Applications, Business Processes, Hosting, Physical Inventory, Shop Floor Control, Smart Warehouse, Systems Integration | No Comments »

Better Business Performance with Better Business Intelligence

July 19th, 2011 by Devender Aerrabolu

A well-executed business intelligence (BI) strategy gives companies and their employees the ability to efficiently access and share the data that will help to improve business performance.

Business intelligence enables companies to view their business in ways that will assist them in making more effective strategic, tactical, and operational decisions.

The goals of an effective implementation of BI include:

To align the day-to-day operations with the overall strategy and objectives of the company.
To identify and understand the relationship between the various business processes and performance indicators.
To ensure that the information and data are relevant to the roles of the specific users and their responsibilities.
To be able to easily analyze the data contained in documents and spreadsheets.
To gain contextual insight into the drivers of the business.
To be able to monitor vital business indicators such as essential financial ratios, profitability of sales channels, and crucial operational metrics.

BI incorporates the people, processes, and knowledge needed to support the operational actions of the company. Because of this, businesses understand the need to acquire the business development insight necessary to improve the overall business performance of all divisions and departments.

With a successful implementation of a business intelligence strategy, engaged and proactive corporate executives and other decision-makers can produce information that is actionable while also identifying the constant emerging changes needed to undertake the meeting of business challenges.

Posted in Applications, Business Processes, Outsourcing | No Comments »

The Top Five Concerns to Guide Your Business Intelligence Decisions

July 5th, 2011 by Devender Aerrabolu

A comprehensive business intelligence strategy includes procedures for data collection, data integration, and data analysis for all of the information in the various databases of an enterprise. Small and mid-sized companies need to balance their business intelligence needs with the realities of their budgets and organizational structures. By doing critical needs assessments before the purchase of a BI software package, companies can maximize their budget allocations while simultaneously providing their employees with BI access that is user-friendly. The top five questions to ask include:

What is the balance between usability and unnecessary features? Too many features on a software application can be overwhelming for the end user and expensive for the company. Look for applications that offer only the necessary functions of integration, publishing, and analysis.
How much metadata is too much? Manual creation of possibly redundant metadata can be expensive and unnecessary. A cost-effective BI software package will offer a balance between existing and new metadata information.
How many additional support packages and consulting services are needed? Many times, vendors who specialize in working with very large enterprise organizations are unable or unwilling to customize their packages for smaller companies. Before signing up for very expensive add-on services, ascertain which services your company really needs and investigate whether some of those services such as installation can be done in-house or outsourced to other, less expensive specialists in your industry.
Are there any “hidden” fees that could negatively impact your bottom line? Licenses, maintenance, and upgrades can become very costly with customized software packages. Fee options to investigate include flexible numbers of user licenses, flat-fee maintenance plans, and the number of processors on your servers.
Will a recommended business intelligence software vendor meet the needs of my enterprise? Often a vendor is recommended because it is popular, well known, or has a particular client. Impressive information such as this may not necessarily translate into the best choice for your company.

A comprehensive yet cost-effective business intelligence software solution will give your enterprise the ability to make accurate and quantifiable decisions. When the goals and objectives of your company are kept in the forefront for all purchase decisions, the likelihood of finding the right solution for your business needs is increased.

Posted in Applications, Business Processes | No Comments »