Software and Controls
Why your ERP and WMS Falls Short in Co-Packing Visibility and Eff iciency
Josephine Coombe, chief commercial off icer of Nulogy, underscores the limitations of Warehouse Management Systems (WMS) and Enterprise Resource Planning (ERP) systems and highlights how best-of-breed software is transforming the co-packing industry by enhancing visibility and agility
THE SHORTCOMINGS OF TRADITIONAL SOFTWARE
C
ontract packing is a critical component of the supply chain, especially in the fast-moving consumer goods (FMCG) sector, as brands seek support for the specialised manufacturing and packing of goods. While many third-party logistics providers (3PLs) and co-packers have WMS and ERP systems in place, these systems often fall short in delivering the granular visibility and insights required to accommodate the unique demands of contract packing workfl ow. This limitation can result in insuffi cient transparency in critical areas like inventory tracking, production schedules and labour management.
ERPs were built to handle core business functions including fi nance and human resources, but they were not built for the specifi city of co-packing tasks. Similarly, while a WMS is designed to provide visibility into materials and inventory within the warehouse itself, it cannot track those materials through the co-packing production process. Consequently, the co-packing production process remains a black box, often reliant on paper, spreadsheets and the knowledge of key staff members, which can drive up costs and hinder effi ciency and quality.
BEST-OF-BREED SOFTWARE: THE ANSWER TO CO-PACKING CHALLENGES Best-of-breed software off ers a targeted solution designed specifi cally for the complexities of contract packing. These platforms deliver real-time insights straight from the shop fl oor enabling businesses to monitor production and throughput rates, optimise labour allocation, manage stock more eff ectively and ensure robust quality control. This focused approach enhances operational
effi ciency by facilitating immediate decision-making based on accurate, real-time data, allowing business to adapt quickly and optimise throughput. Moreover, such specialised solutions can integrate seamlessly with existing WMS and ERP systems, enhancing overall operational capabilities without the need for signifi cant overhauls. A system like Nulogy can supplement a 3PL’s digital landscape, augmenting and complementing many warehouse management systems such as Blue Yonder.
EMBRACING TAILORED SOLUTIONS Pursuing a one-size-fi ts-all system for your internal operations may seem attractive, as companies aim to save money with a single system rather than individual systems for specifi c functions. One size fi ts all solutions are usually a false economy and often overlook the unique needs of specifi c processes, leaving critical gaps that best-of-breed software is designed to fi ll. As more contract packing service providers embark on their digital transformation journeys, focused platforms such as Nulogy, present a clear path to the agility and visibility needed to stay competitive in outsourcing. By embracing a tailored solution, businesses can effectively track materials throughout the entire co-packing process, optimise workflows, reduce waste and ultimately enhance service delivery for their brand customers. With a dedicated system, companies are also well positioned to handle large increases in volume as their business grows. For businesses who view their contract packing operation as an area of focus and expansion, a dedicated system is the strategic choice.
38 November 2024
www.convertermag.com
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