How ERP/WMS Implementation Helped a Manufacturer Optimize Inventory

 
The Challenge 
A contract manufacturer desires to grow and expand their portfolio to reduce risk/dependency on a single customer that represents a large portion of their portfolio. The client communicated that inventory management, including inventory planning and inventory control, was a known limit on growth because they were losing track of inventory and raw materials in the warehouse resulting in delayed production and the need to purchase additional raw materials. 

The Approach

Analysis 

The Client initially reached out to Waypost for help implementing a WMS.  It quickly became apparent that the problems they were facing would not be solved with a WMS if they did not also perform continuous improvement on their processes and existing ERP. 

Waypost Advisors worked with the Client to assess the current state of inventory and warehouse management. Findings included deficits in inventory management documentation, over-reliance on institutional knowledge of individuals, and the need to further implement and utilize the existing open-source ERP system. Waypost provided the client with a detailed plan of improvement that included a need to further explore the following areas: 

• Identify and map key business processes including inventory accuracy, traceability and consumption and their utilization in an easy-to-use technology solution. 

• Document process onboarding and training to maintain a high level of accuracy in the event of staff turnover. 

• Validate processes and requirements for further implementation with an existing ERP system. 

• Identify and document desired future states. 

• Build simple format material planning tools and train the team on implementation and use. 

Crafting a deep understanding of the problems the client needed to overcome helped Waypost design solutions that were a better fit.   

Actions 
After review of the analysis, the Client engaged Waypost Advisors to act upon the recommendations provided to their team. After one month, it was concluded that the existing ERP was not a viable solution for effective and scalable inventory, warehouse, and production management. The Client asked Waypost Advisors to facilitate an ERP/WMS RFP, make a recommendation to leadership, and support contract negotiations through approvals and signatures. 

With a new ERP available, the Waypost team was able to: 

• Serve as project manager and inventory/operations SME for the ERP/WMS implementation 

• Facilitate discovery sessions and play a role in system walkthroughs and requirements definition 

• Act as a liaison between the business units and technical team to ensure that processes aligned with system functionality 

• Lead the preparation and execution of User Acceptance Testing (UAT) with the client and manage tracking and resolution of all defects identified 

• Ensure that process improvements were built out and included in the implementation 

• Create system step-by-step training documentation for key processes 

• Provide hands-on leadership and onsite support during go-live(the new system went live on the initial target date) 

• Provide system training and process support post Go-Live to ensure success and stability long term 

In addition to the ERP implementation, Waypost advisors assisted the Client with warehouse redesign including implementation of scannable bin labels that work with the new WMS System and advised the Client’s team on organizational design and resources needed to support system and processes going forward. 

The Result

As a result of the analysis and the subsequent project between the Client and Waypost Advisors, the Client now has a sustainable, scalable ERP system and a warehouse that is configured to work with the WMS.  This will result in significant savings as they avoid lost inventory and have set safety stock and production trigger values and enable the Client to scale more rapidly to diversify their customer portfolio and sustainably grow the business.  

“Our team trusts you to teach and train and build real processes around and within the system.  We could not have done this without you.  Your expertise, patience, and leadership on this project has been unparalleled.” 

- Director of Operations, Contract Manufacturer 

Partner with Waypost Advisors 

At Waypost Advisors, we work with companies that aim to improve supply chain management and execution.  Our industry-experienced advisors specialize in providing expert guidance and support to businesses looking to optimize costs, minimize inventory, and drive pride in their teams. Our comprehensive approach leverages innovative technologies and industry “best-fit” practices to help companies achieve measurable and sustainable results. By partnering with us, clients can streamline their operations, reduce inefficiencies, and enhance customer satisfaction. Contact Waypost Advisors today for your roadmap to supply chain success.