Cycle Your Way to a Healthy Warehouse

We all know that exercise is an essential part of a healthy lifestyle. And, we know that cycling is a great form of exercise that can improve cardiovascular health and physical condition. But, did you know that cycling can also be healthy for your warehouse?

In an article on the Distribution Team’s web site, titled Cycle Counting: Penicillin for Distributors, Scott Stratman outlines why he believes that cycle counting is like antibiotic medicine for your warehouse. (You can download the complete article here.)

We’re going to expand on his points specifically for Eclipse users, and also take his analogy one step further. We agree that cycle counting can be an effective cure for an ailing, inefficient warehouse; but, it should also be thought of as an ongoing necessity to running a healthy, cost-effective operation … much like exercising (or cycling) regularly is to having a healthy body.

Scott’s article starts out by noting the average operational cost of a correctly processed order. He estimates that to be somewhere between $35 and $45 each. That’s the cost of doing business, right? Right. But, what happens if you’re absorbing that cost not once, but twice; or, even three times. We see it all of the time when we’re consulting with Eclipse users; and, Scott sums up the result perfectly: “Errors cost distributors nightmares in terms of poor customer service, unpaid receivables, lack of trust in the computer system data and, most of all, hard cash.”

In Eclipse, it can be a never-ending déjà vu (like we mentioned last month). Your warehouse team keeps trying to pull the same item multiple times from the same ticket, and they don’t even realize it. That’s because in Eclipse, after you try to pull an order and backorder it, the ticket prints again. But, often times, someone else gets the ticket and the cycle repeats itself.

So, how do you avoid all of this repetitious, error-iffic nonsense? Surprise, surprise: go cycling! When you cycle count, you’re basically checking up on your inventory on a regular basis, so what Eclipse says you have in stock is actually what’s in the warehouse. This way, you won’t be trying to ship product that doesn’t exist; and, quite possibly, items will actually be in their proper places most of the time. Cycle counting also eliminates the need for you and your team to slug through a stressful and difficult annual physical inventory.

Scott provides several steps to executing the cycle counting process, which should be done each day. Here are his suggested steps, along with some specific Eclipse menu items that we’ve added:

1. Stop the paper flow before you count.
2. Find someone reliable to count.
3. Get a cycle count sheet from your system. In Eclipse, you go to Cycle Count Queue: Generate Print, Generate Control File, Print Count Sheets.
4. Count from sheet to shelf, starting with primary locations and moving to secondary and overflow locations.
5. If desired, use cycle counting as an opportunity to restock.
6. Note discrepancies between the actual stock and the system. In Eclipse, you can use the Count Variance Report for this.
7. Adjust the system to reflect actual stock. Eventually, you shouldn’t have any discrepancies. In Eclipse, you use Update Physical Onhand to do this.

Scott recommends you count each item at least quarterly. By taking the number of days you have to count in a year and dividing it by four, you’ll come up with a number for your daily count.

From an Eclipse perspective, we agree with Scott’s suggestions; but, they apply mostly to paper warehouses (vs. RF). For RF, the cycle count is even simpler. For example, you can skip step 1 because the system can count in real time. It will also track additional information, such as improper moves and negative items.

Eclipse cycle counting works in two primary ways. It tracks what is short shipped through the warehouse.  So, if you ship 10 but needed to pull 12, then the item goes to a count. Thus, you can count the short picks. You can also manually generate a row or counts by priceline. Or, you can do them at random via the Generate Random Counts option. Cycle counting also forces users to count items when they have been overcommitted.  If an item is unavailable at the time the ticket is invoiced or printed, this item will go into the cycle count queue to be counted.

Because Eclipse has built-in cycle counting functionality, it’s very straightforward and inexpensive for you to begin these steps. Typically, your location/s should only require a few system tweaks and some minimal training. For the benefits you’ll see from cycle counting, this minor investment can pay for itself in a matter of days. If you started cycling for exercise, it would take much longer than that to see results! Yet, you might be shocked to find out how many distributors don’t practice this key to overall warehouse health.

Eclipse Tip: Cycle Count for Changed Ship Quantities

By default, cycle counts are only generated from sales orders. Therefore, when you issue a transfer and your warehouse staff changes the ship quantities, that item doesn’t go to the cycle count queue.  With the Generate Cycle Count When Transfer Ship Quantities Change control file, you can include them in the queue to be counted. Change the setting to YES and you’ll be on your way to a more accurate warehouse! GET MORE free Eclipse help …

The Top 7 Things that Eclipse Users Get Wrong

Our recent survey is providing insightful and useful information that will help mold the future of this newsletter. One affirmed suspicion is that our Eclipse tips are a hot item each month. While we wait for the final survey results to be tallied, we thought we’d treat you to some reverse tips … in other words, what NOT to do. Spending over five hundred hours per month in Eclipse-run distributors gives us unique perspective into some of the most common operational mistakes.

1. Mass loads don’t fix everything. Without fail, when an Eclipse user runs into a problem, whether slight or serious, the first question out of their mouths is, “Can we write a mass load to fix that?” While mass loads can be helpful in certain situations, they are not a universal band-aid. In most cases, it takes just as long to write the mass load as it would to fix the issue manually. Whenever you come across a challenge, or need to repair a problem, you should first analyze your data set to determine if a mass load is truly warranted.
2. Status code, what? We love salespeople. Their role is invaluable. But, they can be some of the worst offenders when it comes to working in Eclipse. One of the most common scenarios we come across is hearing them declare their individuality – “I’m different, you don’t understand what I do.” – whilst generalizing their orders and trying to make every customer situation the same. Let us explain. Every order with every single customer can potentially be different. Eclipse has useful functionality that allows you to customize each sales order by choosing the appropriate status code. Yet, most distributors we visit don’t use them, or don’t use them properly. These codes are intended to provide personalization, allowing you to treat the order exactly as the customer specified and making your customer service even better. So, why not use them?
3. Prices schmices. Properly pricing products is a more important success factor than most realize; and, a lack of emphasis in this area can run your business ragged. We continue to be amazed by the number of distributors that don’t take advantage of Eclipse’s price matrix. In these cases, each time a salesperson enters an order, they fix the Gross Profit to be whatever works for the situation. In effect, this creates multiple pricing czars in the organization. And, unfortunately, not everybody can be an expert at product pricing. When you set up a pricing matrix, customers get consistent pricing, the sales staff gets to focus on what they do best, and you can effectively and predictably manage your margins.
4. I don’t need no stinkin’ queue. Earlier we mentioned the shipping status and how it’s sadly ignored. But, the customer calling queue is an even greater misfit. It’s purpose is pretty straightforward: it’s turned on when a salesperson needs to be prompted to call a customer. As simple and potentially unnecessary as that sounds, it can really come in handy and improve overall service. For instance, if a customer wants material that you don’t have, you could just send it to them as soon as it gets in …. Or, when the product arrives, you could use it as an opportunity to call the customer. This allows you to have an additional customer touch, which could potentially become an up sell.
5. Everyone’s a math whiz. Ahh, you thought we were just picking on salespeople, did you? Not so. We can take a moment to harp on purchasing, too. Why? Because Eclipse can add 2+2 in the Suggested PO’s just as good as a buyer can. Many times, they think they’re smarter than the system, letting us know that the Suggested PO queue can’t come up with the correct buy. So, they consistently change the buy. However, this is undoubtedly resulting in unnecessary fluctuations in inventory that could be avoided if Eclipse were allowed to do its thing. If the buys aren’t right, you should instead look at the data and the maintenance so that the queue can work as designed.
6. Picking Déjà vu. Have you ever experienced this? Your warehouse picker shorted a ticket, so the ticket reprinted. Then, a second warehouse picker looks for the material. He can’t find it either, so the saga continues. If you’ve been here, it’s probably because your default control file for backorders is set to “A.” That means “ship when available;”and, it does just that, even if you’re on-hand is wrong. The system keeps thinking you have it, and your pickers will continue to look for it. If you instead change your default back order status to a calling status, this lack of efficiency can be eliminated.
7. No love for the labels. It’s no surprise when we walk into a warehouse and see a perfectly good label printer that’s being used only for shelf labels. For truck deliveries, the workers are still using a giant permanent marker to list the route on all of the pretty boxes. Eclipse can print labels for shelves, for products, for shipping purposes, and for just about anything else that needs a label in the Eclipse environment. Put those label printers to use and you’ll instantly step up your efficiency and professionalism.

Staffing Up Sales

If you know Zerion, you know Tony King. As the primary salesperson, as well as a consultant and owner, he’s often the face of the company. And, often one busy man. So, he’s decided that he isn’t too proud to ask for a little help.

Tony’s focus since the inception of Zerion has been on developing and maintaining communication with customers. Keeping in touch, ensuring customer satisfaction, and looking for opportunities is a passion. But, as the business grows and the economy improves, it’s getting harder to do it as well as he’d like. For the New Year, Tony’s decided to call in some reserves. While he’ll still be actively and deeply engaged with the customer base, Joel Gordon and Jon Moyer will be on the front lines. As such, we thought you’d like to meet the guys who just may be giving you a ring in the coming months.

Joel will be responsible for managing the current and past customer base. He’ll work alongside Tony to make sure “we’re there” for all of our customers as comprehensively and proactively as possible. Joel’s background is in technology, having worked in both supply chain management and medical manufacturing. He has a BS Degree in Business Administration and has also served as a sales executive for SAP Business One software. Joel mentioned, “I’ve known Tony for some time and have curiously watched how he manages his customers. I can see what a huge priority it is for him and I’m truly honored to be able to participate in that process, especially with a company that is so clearly committed to its customers.” Joel is a lifelong musician; and, he and his wife Kim are expecting their first child this summer.

Jon’s role is to make contact with potential new customers and introduce them to the benefits and services that an independent consulting firm like Zerion can provide. Jon started his own business development company in 2007, specializing in software sales. He majored in Business Management at Temple University and is a Philadelphia native who now resides in Los Angeles.

Welcome Joel and Jon!

Welcoming Inline and N&S

This month, we’re excited to be working with two new clients, Inline Electric Supply and N&S Supply.

Inline supplies customers throughout Alabama with electrical and lighting supplies. After a recent acquisition, Zerion is helping them convert their new staff from Array to Eclipse by providing remote conversion support, including price matrix, vendor file, customer file and product file.

N&S is a plumbing and HVAC distributor with seven locations in New York and Connecticut. Zerion is providing N&S with consulting and training, on areas such as manifests, work orders and operations.

Thanks for joining us!

Get Some Training on the Calendar

The 2011 Eclipse UFO training schedule is now available at eclipseuser.com. Web-based classes for February are focused around new hires; and, Zerion will be teaching two sessions each for E-term and Solar. Also, for 2011, the User’s Group will be hosting web-based roundtables as opposed to on-site roundtables. There’s one scheduled for mid-February on Activity Triggers, including invoicing, shipping, calling queue and order entry. To learn more or sign up for any of these classes, visit eclipseuser.com.

Give Us 5 Minutes and You Could Win an iPod Touch

Zerion wants to provide better services, greater options and more useful resources in the New Year. If you complete a simple, 5-minute survey, you’ll be entered to win* the latest and greatest iPod Touch! Your needs and opinions will serve as an important foundation for our service offering, staffing needs and newsletter content. Click here to complete the survey and be on your way to a shiny new iPod!

*To be eligible, you must be a Zerion newsletter subscriber (if you aren’t already, you can sign up here) and submit a completed survey by Jan. 31, 2011. One winner will be chosen on Feb. 1 using random.org. NO PURCHASE OR PAYMENT NECESSARY TO WIN. One entry per person.

Bubbling Over BI

One of Zerion’s partners is “knocking it out of the park” these days. Phocas, the global provider of simple, intuitive Business Intelligence software (BI), just received a huge honor for the second year in a row: Business Intelligence Vendor of the Year at the 2010 Software Satisfaction Awards. The award was based on customer votes and focused on the system’s functionality, reliability, ease of use, and the value for the money. Phocas beat Sage this year, and last year they beat IBM, Oracle and SAP. You can read the press release here.

Also, the company’s Managing Director was recently featured on the front page of Business Management magazine web site. You can read what he has to say about getting the most from your BI software here.

Way back in February 2009 we announced our alliance with phocas and last October we mentioned their previous award win. Even though we can help Eclipse customers with any business intelligence software, we have a firm belief in the capabilities of the Phocas software.

Congratulations, Phocas!

Eclipse Tip: Secondary Buy Lines

When you buy a part from two different vendors, wouldn’t it be helpful if the Suggested Purchasing Queue would give you two different options for a purchase order? If you use secondary buy lines within the product file, you can do just that.  Create the second buy line in buy line maintenance, and populate the necessary products.  This will allow multiple suggestions to display in the Suggested Purchasing Queue. GET MORE free Eclipse help …

Kiva Kitchen & Bath: A Conversion Connection

There’s a big difference between four months and four days. And, the time it takes to get up and running after a conversion affects both customers and employees alike. Kiva Kitchen & Bath learned this first-hand when they chose Zerion for the second phase of their Eclipse conversion. With better training and consulting, Kiva was able to derive the benefits of Eclipse – and get back to full, customer-pleasing capacity – in a much shorter timeframe than their previous install. Tom Maples, Kiva’s VP of Operations, remarked, “The end result after the conversion far, far exceeded our expectations! These kinds of conversions rarely go smoothly, but this one went with hardly any problems whatsoever. Zerion deserves all of the credit for that.” To download the complete success story, click here.