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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. 1)Cross-functional data visibility for orders, shipping, receiving, distribution, customer returns, and marketing and advertising promotions.
  2. 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. 3)A combination of metrics reports including forecasts sales, invoice aging, point-of-sale data for each reporting period—weekly, monthly, or quarterly.
  4. 4)Management capability of warehouse storage needs and inventory supply needs based on past and future sales data.
  5. 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.

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.

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.

Effective Employee Collaboration Platforms

July 27th, 2010 by Bharath Lanka

In today’s business climate, many companies have employees scattered across many states and time zones. Keeping employees informed and engaged even though they are geographically distant can bring increased employee performance and innovation to your company.

Businesses can implement effective employee collaboration platforms with the many online tools available. Some examples are internal blogs, software that encourages real-time status updates for specific departments, knowledge management documents, podcasts, RSS feeds, communication facilitation and professional networking opportunities.

Recruiting, training and retaining quality employees entails development of an effective employee “lifecycle” which spans the entirety of an employee’s time with your business.

Oftentimes, finding new employees can be accomplished through the networking ability and referral of contacts from current employees. Using these resources can cut the time and cost of finding new talent that may better match your current corporate culture.

“Onboarding” is a relatively new term that defines the process for incorporating new hires into the company quickly and effectively. A successful onboarding program can help to reduce employee turnover and increase new hire success. Onboarding includes automated information routing, new hire information, new employee development plans, effective communication of company goals and expectations, and onboarding process tracking.

Employee networking is an important benefit for the company and for the employees. Although companies spend a large part of their training budget on formal training programs, the greatest amount of information sharing is usually much more informal between employees. Companies will realize a greater return on their training dollars when they help to facilitate ways for employees to network internally and exchange ideas.

Developing employee profiles help to foster a sense of community among your employees, whether they share a physical location or are separated by wide geographical distances. This workplace community in turn fosters increased communication, a sense of shared corporate memory, and a way to form partnerships through internal social networks.

One of the most valuable assets a company possesses is its human capital: its employees. The success of a business depends on the success of its employees, and businesses are increasing realizing the value of “talent management”. Successful businesses implement platforms that tie their training programs to the goals of their organizations and design ways for their business units to meet their performance goals. Human resource departments realize that they should address the issues of their Generation Y employees as well as those employees who are nearing retirement. Employees value being offered effective career development plans; businesses benefit by identifying those employees who can be positioned for future leadership roles.

With today’s online hosted conferencing solutions and communications platforms, companies can provide all of the benefits of personalized training and seminars while simultaneously reducing travel time and expenses. Real-time training sessions and business unit collaboration meetings can be supplied to specified groups of users based on employee position, department location or communication needs. These same sessions can be recorded for access at any time with permission-based applications.

With effective and ongoing employee collaboration practices, business performance can be tracked and enhanced throughout all areas of a company in a time-efficient and cost-effective manner. Employee collaboration service providers design and implement unique approaches that are flexible and match your companies current workflow and business process and practices.

Benefits of Customer Relationship Management

July 22nd, 2010 by Nitin Bidi

The most valuable assets of any business are its customers, without which there would be no business. Customer relationship management (CRM) business practices help companies retain their best customers and attract new customers effectively through sales, marketing and support interactions.

CRM applications are used by companies to focus on productive sales activities such as planning and forecasting, contacts, opportunities, product and service configurations, pricing, contracts, procurement, and orders.

Marketing activities are more effective when paired with intelligent business decisions. The data gathered through CRM applications enable companies to analyze, develop and implement the processes that will maximize customer interaction.

Customer retention depends on customer satisfaction and support in the areas of contract management, logistics, installation and maintenance, return and repair maintenance, call center operations, and multi-channel delivery options.

Effective CRM applications also help companies reach new customers and enhance relationships with current customers through sales, marketing and services activities provided through the Internet. ERP (enterprise resource planning) applications can be deployed directly integrated with CRM functionality to increase e-marketing, e-commerce, e-service and customer analytics.

Communication processes with current and prospective customers can be improved with effective business communications management and CRM integration and implementation. Today’s customers expect to be able to contact your company by phone, text, chat, email, and fax, and CRM applications can facilitate the routing of all types of communication to the right person in your company whether that person works locally or remotely.

Customer relationship management is an integral component of your company’s total business operations; increasing your return on investment for your sales, marketing, and service and support departments.

Application Hosting Options

June 30th, 2010 by Bharath Lanka

Application Hosting. According to several business dictionaries, the definition of application hosting is “…the rental or outsourcing of business applications from an applications service provider, rather than installing the software internally…”

Many enterprise businesses have traditionally hosted and maintained their own proprietary software applications on their own servers. Today however, many of those same businesses are looking into the benefits of outsourcing some or all of their enterprise-application software to third-party services providers. Companies are finding out that in addition to freeing up time and monetary resources, they realize additional benefits such as department-level or company-wide training, secure data backup, and application upgrade services. Known industry-wide as the SaaS (Software as a Service) model, these off-site hosted applications integrate easily with a company’s existing data and IT systems. Additionally, because customer demands and sales may fluctuate frequently during a specified accounting period, implementing SaaS applications provides the flexibility large corporations need to quickly respond to economic conditions and industry demands.

Some of the open source software applications offered by service providers include:

●      CRM (Customer Relationship Management)

●      PM (Project Management)

●      VoIP (Voice over Internet Protocol) for Call Center Management

●      DMS (Document Management Solutions)

●      CMS (Content Management Solutions)

●      E-commerce solutions and integrated shopping cart applications

●      Mail Server Solutions

When deciding whether to transfer some or all of their applications to a third-party service, many enterprises have to deal with several questions first. The number one concern seems to be security, since SaaS applications are stored online “in the cloud” and therefore outside of exclusive company control. Other questions that should be asked of a service provider before deciding on deployment include:

  1. Can my company have my choice of programming language and application platform?
  2. Will my company have to change basic IT infrastructure such as the operating system and current deployment environments?
  3. What are the contract requirements of the provider?
  4. Is there an upfront investment? If so, how much?
  5. How quick is the response time for spikes and lulls in customer demand and application loading?
  6. What is the experience of the third-party provider with issues such as global deployment, redundancy and resiliency?
  7. What provisions are in place to keep my data secure?

Another important consideration for enterprise concerns with IT environments is managing the various compliance and regulatory data management and reporting requirements. This is another area where hosting your applications with an experienced third-party service provider can assist companies and help to mitigate the risks involved with meeting government reporting deadlines and data recovery processes.

It is the responsibility of a company’s CIO (Chief Information Officer) to ensure a company’s regulatory compliance and infrastructure security, but this is another large area that can be successfully outsourced to the carefully screened and chosen service provider. A disaster recovery plan is also required for most businesses and must include redundant backup systems. Off-site application hosting solutions will help to ensure that your applications and your business can continue to operate even when your main IT environment fails due to man-made or natural disasters.

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