In our previous blog we discussed the added value IT in the wire & cable industry for Product Engineering and Quoting, for Sales and Invoicing, Planning and Quality Assurance. We will now explore how to improve business performance by investing in IT for Warehousing and Logistics.
In Warehousing and Logistics it’s about getting the finished products at the customer at the agreed delivery time, while keeping the inventory at the lowest level possible. In the wire & cable business it is important to have an industry-specific ERP system that provides visibility of inventory down to the individual length (drum) level. This granularity is required to be able to efficiently allocate available stock to demands that come from customers or other sources of demand. An industry-specific ERP system can also apply optimization algorithms for these allocations to minimize scrap and rewinds. Also it can offer alternative products that can be used to fulfill the need of the customer e.g. after recoiling a larger put-up.