Consumer products Industry

Consumer Products include goods and services that are bought for personal and household use such as food and clothing that are intended for direct use or consumption. Consumer goods are classified as durables and non-durables. Fast Moving Consumer Goods (FMCG) is a term used to describe frequently purchased consumer goods. These products produce high levels of sales within a short period of time, such as soap powder, CDs, cigarettes and toiletries. Your core consumers will see the brand names of FMCG every time they open their refrigerator doors or go to their pantries.

Consumer packaged goods (CPG) are consumable goods such as food and beverages, footwear and apparel, tobacco and cleaning products which are classified as non-durable goods. CPG are things that get used up and must be replaced frequently, as opposed to durable items that people keep for a long time, such as cars and furniture.

Pressure continues to mount in the consumer goods industry daily. A good example of this is the apparel segment industry. The apparel manufacturers face unpredictable fashion trends, short lifecycles, large numbers of size, color and style variations and long procurement lead times, all of which make it difficult to forecast demand. The result of this is being out-of-stock of popular items and excess stock of slow movers.

Historically the CPG industry has been slow to invest in new technology, it is increasingly turning to computerized Web-based applications for customer relationship management (CRM), supply chain management (SCM) and enterprise resource planning (ERP). Today, many of the successful consumer goods companies are separating themselves from the rest by adopting supply chain technologies to cut costs and grow profits to deal with marketplace challenges. A technology solution has provided the foundation for overcoming the many challenges that these consumer goods manufacturers face.

Industry Challenges

  • Discount retailing and private-label products are cutting into branded consumer products pricing
  • Increased global competition has determined a tougher economic trend where each new brand costs more to develop and market, but has a shorter life cycle.
  • The rising cost of raw materials, especially petrochemicals for containers, packaging and production, contributes to decreasing profit margins
  • Rising oil prices has made delivery and transportation of consumer goods more expensive
  • Big box retailers demand increased levels of efficiency from manufacturers and demand reduced prices
  • The proliferation of SKUs in micro-segmented markets complicates forecasting and inventory management
  • Off-shore manufacturing increases lead-time and variability throughout the network, causing companies to hold higher inventories to protect against uncertainty

Driscoll & Associates, Inc. and SYSPRO Solution:

Inventory Management (Materials and Finished Product)

The SYSPRO Inventory Management module is the heart of the system bringing the sales, planning, valuation and control into this module. The inventory optimizer portion of the system provides visibility into the status of all forms of inventory across the inventory flow cycle. Planners therefore have the ability to manage demand fluctuations as required. Buyers have ability to plan purchasing to ensure a high level of service. Management is provided full visibility of all stock levels per warehouse, such as Quantity on hand, on order (PO and WIP), available, allocated to Sales Orders, on Back Order, allocated to WIP, in transit, in inspection, future free.

Inventory Control Fact Sheet     Purchase Order Fact Sheet   Work in Progress Fact Sheet
Factory Documentation Fact Sheet

Returns Management

SYSPRO’s Return Material Authorization (RMA) module provides an efficient method of controlling the return or exchange of items sold to customers, ensuring visibility and tracking of items until the transaction is concluded.

Returns Management  Authorization Fact Sheet

Work in Progress

SYSPRO’s Work in Progress module enables you to accurately control costs of work orders currently in progress. Material usage and labor can be posted in real time and in batch mode. It also enables variance reporting to be produced between estimated costs and actual costs of each job. Work orders may be added for stocked items (with a bill of materials), stocked items without a bill of materials or non-stocked items. These work orders can create a bill of jobs for all relevant sub-assemblies down the BOM chain. Labor transactions can be posted through kit issues, manually or imported into the system from a data collection interface. Material allocations can be issued to a job through kit issues or manually and optionally allow for the substitution of a material allocation when performing kit issues.

Work In Progress Inspection
Allowing for inspection, rework, scrap or receiving in as an alternate lower grade product or into a "seconds" warehouse.

Work In Progress Fact Sheet    Bill Of Materials Fact Sheet   Factory Documentation Fact Sheet

Requirements Planning

SYSPRO’s Requirements Planning module is the focus of the manufacturing and material resource planning system. The objective of requirements planning is to create realistic purchasing and production schedules, optimize stock holdings and identify capacity constraints in a multi-site, multi-warehouse environment. The module assists with the planning of materials and production capacity required to meet demand and identifies levels of usage of critical resources for rough-cut capacity planning. It allows for the easy creation of build schedules from Master Production Schedule (MPS) suggestions and the shop floor, and it suggests purchasing, production and transfer schedules to satisfy demand.

Requirements Planning Fact Sheet

Forecasting

SYSPRO’s Forecasting module provides a simple, easy to use forecasting management tool. Based on the available history it suggests future stock replenishment, with the option of removing 'outliers' and enables manual adjustment to the history. Manual adjustments might be needed in terms of market intelligence or unusual demand. In addition there are reports, both tabular and graphical, in format allow for easy reference and the ability to delve into the forecast detail.

Inventory Optimization Forecasting Fact Sheet

Inventory Optimization Families and Groupings Fact Sheet

Goods in Transit

The SYSPRO system will track goods in transit, which will provide greater management control over stock items that are being transferred between warehouses. The system achieves this by monitoring warehouses transfers and supply chain transfers. Warehouse transfers are generated using the Inventory Movements program, where the transfer of an item from a source warehouse generates a detailed record of the transaction. Stock is depleted from the source warehouse at the time of confirming each line of the transfer. At the receiving warehouse, a review process with extensive selection criteria enables you to control the receipt of this stock. Supply chain transfers are generated using the S/O Entry program. The capture of a supply chain transfer order enables you to reserve stock for transfer at a later point in time (as opposed to an immediate transfer out catered for by Inventory Movements). The primary purpose of the goods in transit system is to manage the regular transfer of stock between multiple warehouses.

Inventory Control Fact Sheet

Kit Sales

The Single Level Bill of Materials in SYSPRO's Sales Order module provides the facility to sell items in a Kit form with specified mandatory and optional components. The Bill of Materials module is required to define relationship between the finished (parent) part and the components so as to determine the cost and selling prices and whether the stocking levels of the parent or the component are affected. Companies in the wholesale or manufacturing sectors and who sell items in kits would typically use the Single Level Bill of Materials facility. The integration between SYSPRO's Inventory, Sales Orders, and Bills of Materials modules provides full visibility of all inventory transactions.

Inventory Control Fact Sheet  Bill of Materials Fact Sheet Sales Order Fact Sheet

Backflushing

The Backflushing function in Inventory Movements module is designed to record the manufacture of items without using a Work in Progress job. By using the manufactured item's bill of materials to determine the material and labor charges, backflushing enables you, in one process, to issue the materials from inventory, apply standard labor costs, and receive the finished good back into stock. Companies manufacturing items which use a production line to transform the raw material into a finished product in an extremely short time e.g. manufacturing electrical components, plastic ware, steel nails and fencing would typically use backflushing The integration with SYSPRO's Bill of Materials module permits full visibility through all inventory transactions.

Inventory Control Fact Sheet

Customer Relationship Management

The SYSPRO Customer Relationship Management (CRM) suite of applications will enable Consumer Product manufacturers to increase revenues and client satisfaction through optimal client management. The CRM solution is designed to offer all the key components of business management in one simple module combining customer contacts, marketing, sales, customer service, Help Desk, and after market service and repairs. CRM allows everyone to share the same information putting people in the center of the enterprise with a 360 degree view of the marketing, sales, order fulfillment and accounting transactions.

Syspro CRM Fact Sheet