Overview
The wholesale supply and distribution industry provides goods to retailers, commercial and institutional users, and other wholesalers. Organizations can operate as merchant wholesalers which take ownership of the product and then resell it, as agents or as sales branches for manufacturers. Changes in the economy and consumer confidence greatly affect the wholesale industry. The business environment is changing and so must the industry. The external customer demand and strategic moves of innovative wholesale distributors will steer this industry away from the traditional operations. Consequently, this has resulted in a move towards wholesalers taking a more active role in supply chain management and technical support. This has resulted in national wholesale operations which has encouraged industry consolidation. By expanding its service offerings, it provides an important link in the supply chain. Thus the industry can grow and meet the demands of the economic climate.

Industry Challenges

• Reduce inventory while maintaining customer service levels
• Manage inventory of a large number of product lines
• Improve speed and accuracy of processing and dispatching customer orders
• Co-ordinate order and distribution operations to minimize supply chain disruption
• Integrate e-commerce systems with ERP systems to improve efficiency and order turnaround time
• Improve electronic collaboration with distributors and customers
• Enable on-line ordering and configuration
• Manage customer relationships with a wide variety of customer types
• Reduce lead times
• Manage inventories in multiple distribution warehouses
• Manage order backlog
• Plan and manage distribution and goods in transit
• Improve forecast accuracy
• Manage cash flow
• Improve efficiency and accuracy of picking and packing operations
• Minimize obsolescence
• Optimize delivery loads and minimize transport costs
• Comply with safety regulations for transporting hazardous goods
• Reconcile customer deliveries to contracts
• Reduce the number of product returns
• Manage distribution fleets and delivery contractors
• Integrate IT systems with GPS tracking systems on fleets

How SYSPRO Can Help

Forecasting
The SYSPRO Forecast Module is a systematic method which uses historic demand to predict future sales. It uses a set of well tested and understood mathematical algorithms. Forecasting is thus able to assist the enterprise in the following important areas:

It looks at past sales and matches the algorithm which would have had the best chance of success in estimating previous sales. That algorithm is then utilized to predict future sales. The method described is the Competition method as it competes for the least or smallest forecast error possible.

The algorithms used are:

• Mean
• Median
• Moving average
• Exponential smoothing with trends
• Six Period weighted average
• Annual seasonal profiles - unsmoothed
• Holt-Winters additive
• Holt-Winters multiplicative

The forecast can be manually edited, where required, taking cognizance of market intelligence and thereby improving accuracy and accommodating unusual demand. Thus organizations are able, through exception processes, to identify stocking items by location which require manual correction.

Trade Promotions Management
The SYSPRO Trade Promotions module enable consumer good manufacturers and distributors to manage and control various company-specific rules concerning pricing, promotions, special offers, rebates, etc, when supplying the market through brokers and retailers. The module enables the easy processing of any promotions that are available to a customer, and any deductions they may take.

Multiple different promotion types are available per order item, including temporary price reductions at invoice; accrual for later redemption, such as rebates and advertising bill-backs; and free goods program such as 'buy-ten-get-one-free' programs. Lump sum fees which the manufacturer pays to the retailer, such as slotting and pay-to-stay charges, are catered for.

During customer order entry SYSPRO automatically calculates the relevant prices using threshold quantities from multiple line items. Promotions that qualify are presented in a review style to the operator for selection, or applied automatically as line items are added or changed. The system maintains the promotions separately, generates charges off the invoice and tracks accruals. Accounting transactions are generated at each stage.

Promotions can be viewed, adjusted and paid by a customer credit or an accounts payable transaction and detail files are kept in the system for reporting.  Deductions are entered with cash application, at a single point of entry. Adjustments for funds exceeding the check amount are generated by the system, so there is no need for separate credit memos to be entered.

The Deduction Review shows all open and closed deductions, enabling operators to select many factors. Deductions can be reclassified, resolved, written off, or automatically matched against accrued promotions with matching deduction codes. Debit notes can be generated for unauthorized deductions and notes and follow-up dates can be maintained.

Inventory Control
The Inventory Control module forms the core of the accounting, distribution and manufacturing facilities. It is designed to integrate with all the major functions of the systems and to provide timely and flexible reporting on inventory holdings. Features include multiple warehouses and bin numbers, multiple costing methods, a full Kardex facility, a stock take system and extensive reporting.

Requirements Planning
The 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. Features of this module include variable planning horizons, dynamic capacity profiling and load leveling. This is a bucketless system. The calculation is regenerative and infinite, and can be fed into Forward Finite Scheduling.

Purchase Order
The SYSPRO Purchase Order module enables you to monitor the quality, accuracy, lead times and costs of purchases, while providing comprehensive supplier performance analysis

The Purchase Order module provides:

• Detailed screen queries, including graphical purchase order commitment
• The ability to choose inventory cost, last price paid or contract pricing when creating orders
• Analysis of vendor performance for delivery times, quoted prices and quality specifications

• Goods Received Note (GRN) suspense facilities for accounts payable invoice matching and variance posting and reporting
• Streamlined purchase requisitioning and authorization processes
• Automatic purchase requisitioning via linked customer orders
• The option to fax or email purchase order documents when used with the Office Automation module
• Free-format stationery setup for local and foreign purchase orders, requisitions and blanket contracts

Product Configurator
The SYSPRO Product Configurator enables manufacturers to differentiate their product offerings through the ready customization of product to meet customer specifications. The Product Configurator module provides a rules-based configurator that will primarily help companies efficiently process products that are manufactured-to-order, assembled-to-order or sold in many configurations. It can also help reduce configuration errors, while reducing the involvement of experts in routine transactions.

Pre-defined user configurations are set up to control the configuration process and eliminate invalid product options and options relationships. The configuration can be set up to create a stocked parent part, non-stocked parent or both. Once the parent has been defined, non-technical people can use the Product Configuration Wizard to create a viable customized product for a bill of material, job, sales order, estimate, quote or a combination of these. You can also retain libraries of commonly configured items.

In this way you can offer multiple configuration options to customers in a controlled, cost-effective and user-friendly manner in order to maximize customer service and operational efficiency.

Customer Relationship Management
The SYSPRO Customer Relationship Management (CRM) system lets users track and manage all customer and supplier touch points. Customer correspondence, status, vendor relationships, marketing campaigns, service issues, product returns, warranty and repair histories, quote and sales order information are monitored and recorded, providing a 360 degree view of internal or external business relationships. SYSPRO CRM enables sales, marketing and customer support operations to work collaboratively to achieve total customer satisfaction.

SYSPRO CRM enables manufacturers to increase revenues and client satisfaction through optimal client management. In addition it enables the manufacturer to decrease order cycle times and deliver product when required. Real time information in CRM enables you to proactively anticipate your client’s requirements.

Blanket Sales Orders and Releases
The SYSPRO Blanket Sales Orders and Releases module provides an effective method of setting up, tracking and reconciling Release System contracts and releases between Original Equipment Manufacturers (OEM's) and their customers (particularly the Motoring Industry).

These contracts, which govern blanket orders placed for the supply of material over time with multiple deliveries, have historically been managed manually. This has made it difficult and time consuming to provide an accurate means of tracking cumulative release quantities and converting them into deliveries. The underlying problem for suppliers is that it takes so long to action a new release that management cannot examine the ramifications of any changes. The process is inherently difficult and error-prone, often resulting in the supplier incurring penalties for stopping the OEM's assembly line. The supplier is neither able to check timely that the OEMs are adhering to the contract, nor do they have time to establish their own capability of meeting the new requests. This results in missed delivery dates, emergency purchasing and production control in a permanent state of expediting. The Blanket Sales Orders and Releases module is designed to address these problems.

It enables the easy capture or import of a new release and provides the necessary tools to manipulate the release and advise the customer of what has been accepted or changed and why. It enables updating of existing scheduled orders automatically, and provides an audit trail of deliveries so that disputes over quantities supplied to date can be resolved. It also enables the various tasks to be split up so that the appropriate level of staff can be employed for each function.

Return Merchandise Authorization
The SYSPRO Returns Management Authorization (RMA) module is designed to assist you in managing the return or exchange of products from your customers. Once the customer notifies you of the intent to return a product, you can issue an RMA with the applicable reason for the return and/or invoice numbers that pertain to that product.

At the point of issuing the RMA, SYSPRO enables the operator to cross-ship a replacement item to the customer. This may be used in the case where the customer cannot return the defective item without first having a replacement item. Once the customer returns the merchandise, during the receiving stage operators may choose various courses of action, such as creating a work order for the faulty product to be repaired, receiving the product back into the warehouse and crediting the customer, or exchanging the product. If the item that the customer is returning is part of a bill of materials, on exchanging the product the operator can choose to restock the components.

Counter Sales
The Counter Sales function within SYSPRO is used to sell stock directly to a customer. Stock allocation and payment is immediate, where the payment can be cash, credit card or on account. Deposits can be entered and applied as payments at a later date.

Lot Traceability
The SYSPRO Lot Traceability module is designed to provide full traceability at transactional level for items which could cause loss of life or limb if conformance to quality standards is not adhered to. This enables you to maximize quality control through the tracking and replacement of any defective materials and manage product recalls efficiently and effectively. You can choose between numeric or alphanumeric lot numbering and if numeric, whether the numbers must be assigned manually or automatically.

Companies in highly regulated industries for safety or health compliance such as electronics, aeronautics, defense, food, pharmaceutical, medical devices and motor vehicles would typically benefit by using SYSPRO's Lot Traceability module. It facilitates tracking material movement through the receiving, manufacturing, assembly, inspection, stocking and final dispatch stages. Integration with SYSPRO's other modules permits full upward and downward traceability through all inventory transactions.

Landed Cost Tracking
The SYSPRO Landed Cost Tracking module is designed to assist you in the tracking of imported goods, the establishment of an ETA and the establishment of a reliable estimate of the overall cost of imported goods. It also aids the calculation of a more accurate actual cost at which to receive the goods. It provides an actual cost comparison to the various estimates made during the procurement cycle and enables the archiving of completed shipments and associated costs.

SYSPRO Analytics
SYSPRO Analytics provides the tools to help you gain multidimensional insight into your organization enabling you to make accurate strategic management decisions. It facilitates quick and easy access to the information you need to make decisions that impact your customers, sales, profit, growth opportunities and business operations.

You can create multi-dimensional views of your financial and operational data to determine patterns and underlying trends, gauge performance, leverage opportunities and outmaneuver the competition.  SYSPRO Analytics is an easy-to-install, easy-to-configure and easy-to-use metric based application. An in-depth knowledge of SYSPRO data structures is not required as this powerful tool provides a series of intelligent analysis objects and metric templates that intuitively build the required processes for the information needed. This allows you to access information promptly instead of wasting time learning the intricacies of BI technologies before they can be of any use.

SYSPRO Reporting Services
SYSPRO Reporting Services is the next generation reporting tool that forms part of the SYSPRO Enterprise Reporting suite. It incorporates an embedded version of Crystal Reports XI to provide a single, cost-effective solution that simplifies operational effectiveness. You would use SYSPRO Reporting Services to design custom reports to virtually any level of complexity, complete with tailored reporting options, preferences and layout features such as graphs. You would also use it to share reports between users and companies, protect access to information and publish reports in multiple formats. SYSPRO Reporting Services enables you to produce professional-looking reports quickly and with minimal cost and effort. It enables you to significantly reduce the costs typically associated with the creation and design of reports as well as increase productivity by allowing for the scheduling of multiple reports that can be run simultaneously in the background. Cost savings are realized through the inclusion of built-in drivers (to bind to optimized SYSPRO e.net solutions business objects); report archiving (reduces the consumption of office stationery); quicker development time (no need for external report designers); and protection from changes in technology upgrades (no more re-engineering of existing reports with each new version). SYSPRO Reporting Services is based on the .NET framework, and has support for Windows and UNIX. Standard SYSPRO e.net solutions Query Business Objects are used to interrogate the information from the SYSPRO database and XML messaging is used to communicate between the client and server of SYSPRO Reporting Services.

SYSPRO e.net solutions
SYSPRO e.net solutions enables you to extend beyond your enterprise using the SYSPRO open interface. SYSPRO e.net solutions provides you with the technologies to:

• Utilize SYSPRO as a development platform for creating custom business applications based on existing business logic
• Integrate SYSPRO with disparate business systems, both internal and external to your organization

SYSPRO e.net solutions provide:

• A suite of web-based applications written in ASP.NET
• Powerful business logic component architecture for rapid application development
• COM or Web Service based Application Programming Interface
• An XML-based framework for standard data interchange format
• Document Flow Management for intelligent document routing with dynamic transformation

With SYSPRO e.net solutions, you can:

• Integrate SYSPRO and existing enterprise applications both internal and external to your business
• Support business application and process collaboration within your business eco system using Service Orientated Architecture (SOA)
• Implement the backbone architectures to support Demand Driven Supply Networks (DDSN)
• Provide information access and delivery using any Internet, cellular or wireless transport technology
• Leverage the power and flexibility of Internet and mobile technologies for competitive advantage and cost savings
• Utilize SYSPRO business logic as a platform for rapid development of generic or proprietary business applications
• Automate the flow of business processes between disparate enterprise applications and support systems

Document Flow Manager
Business-to-business is about sharing data between trading partners. For example, a sales order arriving via e-mail into your back office system may prompt a request to purchase goods from your supplier. Thus, you have a sales order document coming in and a purchase order document going out.

The Document Flow Manager (DFM) enables SYSPRO customers to exchange documents, such as sales orders and purchase orders, more easily than ever before: it forms a key part of collaborative commerce. The Document Flow Manager enables you to automate the document flow because documents can be retrieved automatically and instantly as they arrive electronically at a company.

The Document Flow Manager provides a powerful way of automating your business processes. Incoming documents that are defined using XML data can be tracked and posted directly into SYSPRO. Documents can be transformed from one format to another either using the Document Flow Manager itself, or more sophisticated products such as BizTalk.

• Documents are automatically and instantly retrieved when they arrive electronically
• Documents are automatically routed and processed
• DFM can automate any of the available SYSPRO business objects. For example, you can set up an automated response via e-mail to request for inventory information.

• XML documents are copied to 'failed' or 'processed' folders
• XML documents can be translated using an XSLT translator
• Email notification can be sent to the originator or processed and/or failed documents

Quotations
The Quotations module enables the entry and maintenance of quotations, the printing of free-format quotations and, upon confirmation of the quote by the client, the confirmation of the details into Work in Progress, Sales Orders and Requisitions/Purchase Orders.

The Quotations module generates quotes, which emulate sales orders, with up to five quotation quantities/offers per line. While quotation may be as simple as a listing of stock parts, the power of the module becomes evident when one or more stock items must be specially made. In these cases, a supporting estimate can be created. This, in turn, may have one or more special parts, which again can be supported by an estimate, and so on, similar to a bill of materials. This process can be extended to fourteen levels, which are then rolled-up to complete the quotation's top level costing. Prices are calculated through price mark-ups based on a % of individual Labor/material costs, and/or using a specified Rate indicator for Labor, and/or using an entered price for material. In addition three global markup percentages can be entered all labor, material and the total.

When the quotation is accepted, it can be used to record a sales order and, where necessary, a chain of master and sub-jobs to support it. Purchase requisitions and purchase orders can be created for special bought-out items or when shortages exist for bought-out/sub-contract items anywhere in the Sales Order/Job chain.

Besides using the Quotations module for quoting, SYSPRO has a simplified quoting system that can be used within Sales Order Entry, called Quick Entry. You use the Quick Entry function to enter quotes in a rapid and effective manner without having to enter all the details associated with the entry of a normal order. It is ideally suited to a telesales environment, where speed of entry is important and the facility to enter a quote rather than an order is vital. The quote can be stored for retrieval at a later stage and then converted into an order for a specific customer.