East Bay Manufacturing Group (EBMG) hosted “Leveraging Technology & Data to Achieve Success” on Thursday, June 1 at Sensiba San Filippo LLP in Pleasanton.
Guest speakers with extensive experience on the topic led the conversation. David Ginsberg is the vice president of supply chain management for Sonic Manufacturing Technologies and has a Master of Business Administration, Certified Fellow in Production and Inventory Management (CFPIM) and Certified Sales and Operations Planning (CS&OP). Ginsberg examined the benefits of the real-time execution of the data-driven supply chain at Sonic Manufacturing Technologies and shared his personal experience and strategies for making data actionable, not simply reportable.
Frank Balestreri, CPA, is an audit & consulting partner for Sensiba San Filippo LLP who specializes in serving clients in the consumer products, manufacturing, distribution, energy and alternative energy industries. Balestreri explored ways to leverage your enterprise resource planning (ERP) in a manufacturing environment to achieve strategic goals.
Optimize Supply Chain
Ginsberg began the event with a presentation on “Real-Time Execution: Autonomously Driving the Data-Driven Supply Chain.” He discussed how dollars are the effort required to convert data into parts asserting that least total effort equals least total cost. He then explored components of supply chains, including agility and responsiveness; demand and response; data pipes and data problems; data automation; and more. The supply chain veteran warned that “MRP will process bad data into wrong decisions faster than ever before.”
According to Ginsberg, the Keys to Success for the most successful supply chain include accurate data, predictable processes, speed of execution and integration with suppliers. He recommends using a self-correcting database for creating actionable data, such as:
- Zero cost/change of cost
- Zero lead time/change of lead time
- Primary supplier
- Responsible buyer
- MRP date ranges
- Inventory accuracy
- PO expediting/rescheduling
- Aging of actions
“Why report data and analyze data when the data can action itself. This is the next level of business automation,” said Ginsberg.
Leverage Your ERP
Balestreri focused on tips and tactics to “Work Smarter Not Harder to Achieve Your Strategic Goals.” He walked attendees through the ERP evolution, as well as various software challenges.
According to Balastreri, manufacturing companies using less sophisticated ERP systems risk the following common issues:
- Time-consuming manual effort for planning and information requirements
- Manual output that is not efficiently entered or effectively synchronized to accounting software
- Processes that are prone to errors
- Potential inventory control and costing issues
- Reasons for differences between estimated costs and actual costs, which are not easily determinable
- Poor communication between departments
He emphasized the importance of aligning a company’s strategic goals with the ERP, as well as considering your key performance indicators (KPI), which define and measure success at reaching goals; offer guidance on future results; improve performance over time; and are important to lenders and investors who are interested in product line gross margin, cash flow, revenue growth and EBITDA (earnings before interest, tax, depreciation and amortization).
Overall, Balestreri recommended that each company first perform an assessment and then explore its options.
“Embrace technology and change, set strategic goals and leverage software to help you work smarter not harder,” concluded Balestreri.