Outside of implementing inventory and data software solutions for companies, our experienced inventory management specialists train and educate teams to extract more value from existing Enterprise Resource Planning (ERP) systems, predominantly SAP.
The Vueterra team is highly skilled as onsite and remote trainers having years of experience applying their methodology in multiple heavy industry verticals and health.
In the not so distant past, inventory used to mean a “decentralised system” where inventory was kept by separate departments with often duplicate inventory, there was often increased expenditure on materials and low service levels. These factors led to the loss of consumer satisfaction and poor reputation.
By educating staff in the best use of your SAP program your business will maximise the value of the current system and work more efficiently at the shop floor.
The key benefits of modern SAP systems include:
- Elimination of duplication, data discontinuity and data redundancy
- Centralised control over business processes and approvals
- Better inventory management (which promotes, quality, reduces material costs, allows far greater service levels of materials)
- Improved customer interaction and satisfaction
To help your workers get more out of your SAP, Jeff can organise classroom-style training sessions, or face to face, one-on-one consults that walk through the screens and how to apply the methodology to your teams way of working.
Most notably Jeff explains the methodology of MRP (Material Requirements Planning) and the advanced features that will allow greater demand planning and strategy.
“The most frequent issues I see in big companies are workers not managing the settings correctly, or not using “exceptions” settings correctly,” he says.
“Every time MRP runs, not only does it recalculate quantities, but it also gives you an “exception” message that tells procurement whether they should cancel stock, expedite purchase or whether the demand has changed (eg the date has been moved forward or backward).
“Exceptions are like a warning that highlight any deficiencies in the supply chain, telling you where all the gaps are and how to fix them.
“It is often overlooked as it is hiding in plain sight and frequently people who are not well versed in the product do not realise the value and simplicity of the function to plan demand..”
Repairable inventory is another example where Vueterra offers training.
One recent example I can think of was being called by a mine worker in PNG, who couldn’t get a gearbox on the mainland in Australia for 90 days,” says Jeff.
“He was walking around the site doing another task when he stumbled across a new, unused gearbox hidden under a tarp.
“It was puchased by someone who had been transferred; was purchased directly from the supplier and nobody knew this very expensive and critical spare was even there.
“Machinery is very expensive to repair – we’re often talking hundreds of thousands of dollars once you factor in the loss in production due to complacent management of inventory.
“We train staff on how to apply SAP to manage repairable inventory, to know exactly where materials are moving about in their own organisation.”
He says another common mistake is inventory being expensed and/or managed outside of the ERP.
“When workers don’t manage movements correctly in SAP, nobody knows where the inventory is or whether there’s five or zero. This is equally as frustrating for analysts as consumption is hidden and not taken into account when setting stock levels.
“A good example of this was working in a hospital recently where all inventory was expensed to the cost centre’s, which meant nurses were running between various storerooms looking for items because the stock was invisible in the system. Stock levels were not able to be set to appropriate levels as consumption appeared to be occurring at the wrong storeroom. Understanding your inventory means much greater accuracy in planning for shortfalls of stock in advance.”