Entries by Bizowie

Replacing a Homegrown or Custom-Built ERP System

Many successful distributors and manufacturers run on software they built themselves. It started as a sensible decision: nothing on the market fit, a talented developer was on staff, and the system grew alongside the business. Years later it knows every quirk of how the company works, and that is exactly the problem. It depends on […]

Warehouse Picking Methods: Discrete, Batch, Zone, and Wave

Picking is usually the most labor-intensive job in a distribution warehouse, and often the largest single share of warehouse labor cost. How you pick, one order at a time, many orders at once, by zone, or in scheduled waves, decides how far pickers walk, how many errors reach customers, and how many orders ship on […]

Make-to-Order vs. Make-to-Stock vs. Assemble-to-Order vs. Engineer-to-Order

Every manufacturer has to decide when production starts: before the customer orders, or after. Make-to-stock builds ahead of demand so products are ready to ship. Make-to-order builds after an order arrives. Assemble-to-order builds components ahead and finishes on order. Engineer-to-order designs the product after the order. Each choice changes lead time, inventory, cash, planning, and […]

Engineering Change Management: ECRs, ECOs, and Controlling BOM Changes

Every manufacturer changes its products. The question is whether changes are controlled or simply happen. A controlled engineering change has a reason, an approval, an effective date or quantity, and a plan for everything it touches: open work orders, inventory of the old part, open purchase orders, routings, and documents. An uncontrolled one shows up […]

Reorder Point Formula and Min-Max Replenishment, With Examples

Every replenishment system has to answer two questions for every item: when to reorder, and how much. The reorder point answers the first. Min-max, economic order quantity, and order multiples answer the second. Get them right and you stop running out of fast movers while carrying less of everything else. Get them wrong, or set […]

Cycle Counting: How to Set Up a Program That Keeps Inventory Accurate

The annual physical inventory has a predictable pattern: the warehouse shuts down, everyone counts, adjustments are posted, and within a few months the numbers drift again. Cycle counting replaces that with small, frequent counts throughout the year. Done well, it keeps inventory accurate all the time, finds the causes of errors while they are still […]

How MRP Calculates Requirements: A Step-by-Step Example

Most explanations of MRP stop at the definition: material requirements planning determines what to buy and make, and when. That is true, and not very useful if you are trying to understand why MRP just told you to release a purchase order today for material you will not use for three weeks, or why it […]