UNDERSTANDING EDI – BASICS

Introduction If you are a small business owner, doing business with large retailers like Amazon, Walmart, or Home Depot – you might have heard this – “Can you become EDI compliant to do business with us. We prefer EDI compliant vendors”. So you start looking around what is EDI and how to become EDI compliant What is EDI EDI stands for Electronic Data Interchange. This is the standards provided for machine to machine communication of business documents. To explain further, if someone mentions [...]

Read more...

HOW TO START A DROP SHIP ONLINE E COMMERCE BUSINESS

Any E commerce Business will love to have zero inventory in stock, yet do a lot of sales. This is possible with drop shipping operations. Basically, you find a reliable supplier who maintains inventory of items that you want to sell, negotiate price with the supplier and get the list of items. Publish the list in your online stores and let customers place order on you. Turn around the order to your drop ship supplier and let them directly ship [...]

Read more...

How to Extend Your ERP System Into a Supply Chain System

  ERP Enterprise Resource Planning had traditionally been considered as the system to be used only behind the four walls of an organization. With the Globalization of manufacturing, Outsourcing and lean manufacturing concepts, ERP can no longer act in isolation. The information needed for the efficient operation of the Organization is no longer available within the Organization. Most of the information comes from outside from value chain partners like Suppliers, Contract Manufacturers, Third Party Logistics Providers and transporters. The flow of information is [...]

Read more...

LOCAL BUSINESS TO GLOBAL BUSINESS – ONLINE ECOMMERCE

Retail Stores and Online Stores – Best of Both You might be a running a Mom and Pop shop. May be an antique stores in a small town and wondering how to expand the business beyond the boundaries of the neighborhood, town or city or even country. Amazon, Ebay, Shopify – Your gateways to the online world You can sell the same items you are selling in the stores in online stores also and ship to customers when orders are received. Online [...]

Read more...

Integrating Quickbooks into External Systems

QuickBooks and External Systems QuickBooks is the most widely used Accounting Software in Small and Medium Businesses. What was a simple accounting bookkeeping system has progressed to a full ERP and Supply Chain Management System. Check this article on how QuickBooks is being used in Supply Chain Systems. QuickBooks as Supply Chain Management Solution. Integrating QuickBooks to External Systems Many a times it is necessary to get the data into and out of QuickBooks in a bulk. For example if you are [...]

Read more...

QuickBooks and Supply Chain Management

QuickBooks had always been considered as the best accounting software for small companies. It was considered as Expense and Income tracker and nothing more than that. Companies were looking elsewhere for more advanced ERP and Supply chain operations. QuickBooks has started breaking that image few years back and started offering a complete ERP Solution including supply chain management to its customers. Customers with QuickBooks are thinking beyond the boundaries of Bills and Receipts when they think about QuickBooks now. Refer this [...]

Read more...

Uncover Hidden Profit in Your Raw Materials

If your outsourcing part of your manufacturing or procuring semi finished or fully finished material from external vendors, you have hidden profit that can be uncovered and add to your bottom line. Larger manufacturing corporations have a system where their contract manufacturers will procure raw material through them and not from the suppliers directly. For example, a computer manufacturer may insist that their subcontractors (EMS) procure the hard disks from them instead of procuring directly from Seagate or Hitachi. As [...]

Read more...

Why should companies have their own vendor portal to manage their suppliers ?

A few of the benefits enabled by the introduction of supplier portals include: Broader Supplier Enablement Portals enabled a new tier of suppliers to automate routine supply chain execution transactions such as purchase orders, ship notices and commercial invoices. EDI had gained a critical mass of usage amongst larger companies. However, smaller businesses often struggled to find the resources, budget and in-house expertise to implement EDI. Portals filled the white space in the market quickly. Anyone with a PC and an [...]

Read more...

How to Automate Sourcing Process and Reduce lead time

Lead time is defined as the time taken from when a need is felt to the time need is fulfilled.In Procurement and Supply Chain, this lead time consists of Components of Lead Time Pre-Processing Lead Time (PPL) :- This lead time is needed for sourcing, negotiation and order release Processing Lead Time (PL) :- Time taken by the Supplier to manufacture or process the material and get it ready for shipping Post Processing Lead Time (PL): This is the time consumed during shipping, [...]

Read more...

How to save Material Cost in Supply Chain

How much is 1% of your total Material Cost? A typical manufacturing company spends 60-70% of its total revenue in direct material procurement. If your company has a revenue of say $100 Million, 60-70 Million could be spent on direct materials. 1% of it is $600-700 thousands. That is lot of money to let go loose due to poor communication in Supply Chain. The below scenarios appears to be simple and part of day to day operations of a company. But it [...]

Read more...