Replenishment is a critical component of high-volume distribution and manufacturing. It is also notoriously dangerous when you get it wrong during an ERP implementation. Some of the most high-profile ERP disasters came from companies over buy based on false or inaccurate demand. All American Semiconductor illustrated this concept in vivid detail.
The below video discusses with topic in relation to ADempiere and iDempiere, open source ERP. It illustrates using the ooch approach to first learn the off-the-shelf functionality. It then describes identifying low-cost and high-reward changes to help maximize accuracy, insight, and productivity.
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I hope this helps!!!
- Introduction to and demonstration of manufacturing in ADempiere and iDempiere
Please note that ADempiere, iDempiere and Openbravo are forks or copies from Compiere. Therefore, they have similar abilities mentioned above. The biggest difference is that ADempiere and iDempiere are pure open source. There are no features held behind a commercial or paid license.
About Chuck Boecking: I am an ERP educator. I believe that open source ERP have achieved mainstream capabilities, and as a result, more companies can create greater efficiency across their organization. I started using the iDempiere code base in 2003. Back then, it was called Compiere. In 2006, I started my first multi-million dollar installation. Since then, ADempiere has helped me create great success with distribution and manufacturing companies all over the world. My vision of success is to find companies that can best use open source ERP to help them achieve a single, global instance that drives a discontinuous increase in profitability. I believe that organizations win when they own their technology.
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Addition topics discussed in this video:
high-volume dist and manufacturing
intimate and risky
12 years of experience (MS Dyn, ADempiere, Vertical market) – no case did replenishment work out of the box
(1) proprietary – work around
(2) OS ERP – work around or modify the code
Replenishment has direct tie to money – horror stories (over buy -> bad cash position -> bankruptcy
How does this tie to the ERP implementation process?
– MFR (order and stock) + Dist
– 4 locations (2 mfr and 2 distribute)
How replenish process works
(1) Picture of demand – semi-finished goods, raw goods, or distributed goods
(2) Automation – when and how to create purchase orders, distribution orders or manufacturing orders
How Open Source ERP Helps:
– helps support the ooch approach
– first learn how the system works
– – how system registers demand
– – how system presents demand
– determine the deficiencies
– – quantify the deficiencies (hours and/or errors)
– – pick the difs that represent high value and low impact – pick off the low hanging fruit.
(1) starting with manual processes is an effective teaching tools
(2) automate low hanging enhancements
Replenishment is one of the best examples of how continual innovation (week 1, week 5, week 20)
Example: picture of success. Weekly enhancement meeting to prioritize on Monday and release on Friday. repeat…
Don’t let code scare you – goal is to help a junior IT person make small changes that yield big changes to productivity, efficiency, and accuracy.