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    The complete software solution for the Wire & Cable Industry

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  • InnoVites CableSuite

    InnoVites CableSuite

    The complete software solution for the Wire & Cable Industry

    Contact us

  • InnoVites CableSuite

    InnoVites CableSuite

    The complete software solution for the Wire & Cable Industry

    Contact us

  • InnoVites CableSuite

    InnoVites CableSuite

    The complete software solution for the Wire & Cable Industry

    Contact us

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12 November 2015

The meaning of length in the Wire & Cable Industry

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200m + 100m does not always equal 300m in the Wire & Cable Industry. Also, 300m conductor does not always mean 300m cable. Wire & Cable specialists understand, but does your ERP system?

Working capital level 50% higher
Simply put, cable manufacturing is about assembling expensive conducting materials (e.g. copper, aluminum, glass fiber) into a construction that isolates and protects these materials. This means that a cable factory is full of expensive raw materials and that’s why we usually see solid fences surrounding the production facilities. It also means that cable manufacturers have high levels of working capital stuck in inventory. The inventory turnover in days (ITID) for cable manufacturers (107 days) is 50% higher than average for the manufacturing industry. This notion has an impact deep in the supply chain. For cable manufacturers this means that the operations in inventory and production need to be carefully managed. Inventory levels and scrap losses need to be minimized to protect the bottom line.

The meaning of length in cable manufacturing
Just an example: to get 1,000m of cable, we may need to produce 1,050m to compensate for scrap losses. This means that we may require a 1,150m length of conductor, which we can produce by stranding 7 wires of 1,200m. Notice that 1 wire of 8,400m wouldn’t be helpful in front of the strander. Neither would 1 wire of 5,000m and another one of 3,400m. You are starting to get the point of length management in cable production planning?
The ERP system should not only create these planned orders correctly, but also ensure full traceability throughout the chain of orders, from the purchased copper rod (or raw fiber), to the finished cable.
Another requirement for the ERP system is ensuring optimal production lengths by grouping demands from other customers or other constructions, while taking the maximum pay-off length into account. This enables Cable manufacturers to minimize the change-overs on their extruders and become more efficient and reduce material losses.

The meaning of length in delivery
When ordering a quantity of an article, we usually don’t mind whether they are delivered in two or in three boxes. This is not true for cables though. When your customer orders 300m of a certain cable, they most probably require one cable of 300m. They will not accept multiple cables adding up to 300m (and make multiple joints in the field). Your ERP system should be able to handle this requirement. 
InnoVites Cable ERP was designed and developed to cope with the specific requirements of Wire & Cable manufacturing and distribution. Are you interested in discussing your requirements with us? Just contact us.