Do You Know Where Your Inventory Is? TRACEABILITY IN THE MANUFACTURING INDUSTRY

2Do You Know Where Your Inventory Is?

Today’s Manufacturing Industry Is ChallengingAs a result of increasingly stringent industry regulations, more

demanding customer expectations, and a dynamic marketplace,

manufacturers today face many challenges.

Manufacturers that want to maintain market leadership

must go digital. With the help of digital solutions,

manufacturers can:

• Reduce and eliminate manual processes

• Increase productivity with automation

• Provide access to end-to-end analytics

• Connect shop floors, supply chains, people, and

systems all in one unified platform

As manufacturers embrace digital platforms, one thing tops their list of

desired capabilities: the ability to trace inventory quickly and accurately.

3Do You Know Where Your Inventory Is?

Traceability and the Reality of Using Outmoded ProcessesMany manufacturers still rely on manual — even paper-based — methods of

recordkeeping that are time-consuming, are error prone, and make data difficult

to find. Even those using digital tools often remain on legacy systems that are

disconnected, are expensive, and lack visibility.

These manual and legacy systems create the following problems:

Manufacturers need a better solution.

Lack of data transparency

Inefficient audit preparations

Inventory oversupply or undersupply

4Do You Know Where Your Inventory Is?

“The automated, paperless system saves time and effort, and helps with ISO compliance.”

MARK WILLIAMS,SENIOR STAFF ENGINEER,NEWMAN TECHNOLOGY

5Do You Know Where Your Inventory Is?

The Benefits of TraceabilityWhy is accurate traceability a critical capability for manufacturers? Because it simplifies

recall management and improves inventory visibility.

Recall Management

In manufacturing, the word “recall” is bound to incite panic. This is understandable.

Recalls can be costly and painful. They create unforeseen demands on time,

burdensome replacement of parts and products, and even brand-reputation damage.

Accurate traceability mitigates the effects of recalls. It allows a manufacturer to follow

components and products from end to end, starting with the supplier and progressing all

the way through to the distribution chain. If a manufacturer can pinpoint exactly where an

error or malfunction was introduced, it can then trace down the line to see where faulty

products were produced and distributed. Rather than spending time and money recalling

all products, the manufacturer can focus its efforts on just the faulty ones.

While mitigating the impact of a recall is important, it’s better to avoid quality issues

altogether. When combined with integrated quality management, a good traceability

system lets manufacturers monitor parts as they flow through the supply chain. Rigorous

documentation for all operations makes it easy to quickly prove compliance. And with

the ability to keep an eye on everything from inspections to production to shipments, a

manufacturer can identify and deal with most problems before faulty products leave the

building and have a chance to impact end customers.

Save Time with Traceability in Recall Management

After years of using a combination of paper-based processes and DOS to manage recalls and trace inventory, contract packaging company Aaron Thomas decided to switch to Plex. One of the major benefits that it gained from the Plex system was in improving recall readiness. Mock recalls — which once took several people several days to perform — can now be executed by a single person in as little as seven minutes.

6Do You Know Where Your Inventory Is?

Inventory Visibility

Track and trace go hand in hand to capture the complete genealogy

for inventory accuracy. When tracking is applied rigorously across the

organization, the result is a clear view of inventory at any point in time.

This allows manufacturers to properly manage inventory to ensure that

they don’t suffer from either an undersupply or oversupply. Undersupply

can create production shortages and unfilled orders that result in unhappy

customers. Oversupply, on the other hand, results in excess inventory —

wasted capital sitting on the floor accruing carrying costs. Manufacturers

need tools that give them visibility into the inventory they have on hand so

they can avoid the problems of undersupply and oversupply and instead

enjoy the benefits of accurate supply.

“We have realized tremendous process enhancements with the implementation of the Plex Cloud ERP solution. Improvements in communication, access and the availability of information have enabled us to be more competitive, efficient, and successful in the marketplace.”

JENNIFER MARTIN, IT DIRECTOR, CREATIVE FOAM CORPORATION

7Do You Know Where Your Inventory Is?

It’s Time for a Better Solution

As regulations grow stricter and the market becomes more dynamic,

manufacturers need:

A way to track inventory accurately and automatically that reduces

manual labor hours, eliminates errors, and simplifies paperwork

Tools to accurately assess how much inventory is on hand at any

time – even work-in-process inventory

End-to-end visibility to trace throughout the supply chain to see the

entire history of a product, component, or part

This is where the Plex Manufacturing Cloud comes in. Plex is a cloud-based,

modern, and unified Enterprise Resource Planning (ERP) and Manufacturing

Execution System (MES) made just for manufacturers. With built-in barcode

and RFID capabilities, serialized container and part tracking, and real-time,

end-to-end visibility, Plex makes traceability concerns a thing of the past.

Audit trails can be produced in minutes, inventory transparency is just a click

away, and for every action on the plant floor, there’s a recorded transaction

in Plex.

“We received a Superior Delivery Performance Award from our major OEM customer one year after implementing Plex.”

MANAGER, COMPUTER SERVICES GROUP, KAMCO INDUSTRIES, INC.

8Do You Know Where Your Inventory Is?

ChallengeWolverine Advanced Materials, a global supplier of vibration damping and sealing materials, needed a transparent way to trace its overseas inventory. (Wolverine had contracted with a Chinese warehousing company to store its inventory but, under the stipulations of the agreement, it remained Wolverine’s property until sold.)

SolutionWolverine didn’t have to start from scratch. As a current user of the Plex Manufacturing Cloud, the Wolverine team worked with Plex Systems to set up an inventory consignment solution that allowed Wolverine to trace its overseas inventory after it had shipped but before it had sold.

ResultsSince implementing the inventory consignment plan with Plex, Wolverine and its warehousing partner and customers have traced physical inventory with 100 percent accuracy. Additionally, with Plex’s easy delivery of inventory data, Wolverine has seen an 87 percent time savings in its monthly audit.

Plex in Action: Wolverine Advanced Materials Hits 100 Percent Accurate Inventory Tracking

“We maintain 100 percent accurate

inventory tracking without manual

processes. We know the status of inventory

at all times.” THERESA GEMUS,

MANAGER OF BUSINESS APPLICATIONS,

WOLVERINE

9Do You Know Where Your Inventory Is?

Don’t Wait — Get Plex and Discover a World of Easy TraceabilityThe Plex Manufacturing Cloud delivers versionless ERP and MES software

designed to empower manufacturers with configurable capabilities, cross-

operational visibility, and real-time insight into critical data.

Simplify audits, reduce the cost of recalls, and easily trace along your supply

chain.

To learn more about inventory management with Plex, visit us online.