ML 100 Awards
 
salco.png“Our business has changed dramatically since implementing Made2Manage as our operating software.” —Dave Oestermeyer, CEO, Salco Products

 

 

PROJECT


Company implements a new ERP system to improve consigned inventory management

Salco Products, a supplier of products and services to rail-related industries, and Consona Corp., maker of Made2Manage ERP software, worked together to streamline Salco’s consignment program accounting.

Consignment personnel are now supplied with an iPad containing a Microsoft Excel spreadsheet of last cycle counts and current physical counts. When the consignment representative enters the current physical count, a simple formula computes usage since the last count. When the count is complete, the consignment representative gives the customer a copy of the spreadsheet on a USB memory card that shows the before–and-after inventory counts and reorder quantity.

The consignment representative then launches a VPN connection, and the iPad communicates with Salco headquarters via a wireless 3G network. The spreadsheet links directly to the item master in the Made2Manage ERP software.

Made2Manage’s customization services group created a Visual Basic program that imports the count sheet data directly in Made2Manage, creating a sales order with all line items. Made2Manage also created a Visual Basic program that automatically detects buy items and generates purchase orders, replacing manual purchase order generation for each of the buy items.

These efficiencies streamlined head count and improved customer service, while increasing the timeliness and accounting of internal financial reporting.

Salco and Made2Manage have evolved a joint process for creating major customizations. Because they understand the business requirements and users best, Salco IT team members create forms using Made2Manage tools. In turn, Made2Manage consultants do the Visual Basic coding.

Made2Manage ERP helped Salco increase sales by more than 70% over eight years, while reducing staffing levels by 10% through attrition. The ERP software also reduced the time required to generate sales orders and internal sales orders from three or four days to 30 minutes, and drastically reduced the time required to generate purchase orders.

“Our business has changed dramatically since implementing Made2Manage as our operating software,” said Dave Oestermeyer, Salco Products’ CEO. “Now, more than 10% of our revenue derives from over 40 consignment locations where freight railcars are loaded and maintained, some inside the fence at major chemical plants. With our product line on the shelf at these sites, railcars can be kept operational in facilities where the timely loading of commodities is critical to daily plant operations. ”