Business Management Supply Chain Software – Restructuring ERP Solutions With Direct Product Supply

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Introduction

Direct Supply is the process whereby the supplier ships goods directly to the dealer without having to transition the goods through the distributor’s warehouse. This enables the distributor to be the conduit between the supplier and the dealer. The delivery process can be streamlined without directly handling goods.

In the normal supply process, a dealer purchases from a distributor. The order is processed and the goods sent to the dealer. If the distributor does not have the goods in stock, an order is sent to the supplier who then sends the goods into the distributor’s warehouse. The goods are unpacked, checked and stored; the dealer’s backorder is processed and the goods are picked and sent out.

Direct Supply, by sending goods directly to the dealer from the supplier, eliminates additional handling, storage and repackaging but maintains the logical interaction with the distributor. The order processing time is dramatically reduced, the goods are delivered faster to the dealer and the overall supply chain costs are reduced.

Cost reductions

Cost reductions are the result of the distributor not directly handling the stock, and using the supplier as a virtual warehouse. For the distributor, the logistics costs of handling and continual movement of goods is removed, as are any storage costs, which remain with the supplier. This becomes more important when a third party logistics operation is being used by the distributor as each transaction in the warehouse attracts specific costs.

Furthermore, local suppliers often have multiple branches and the cost of either supplying to a dealer directly, or to the distributor’s warehouse, is about the same. Transportation costs are decreased because there is now a single transportation process, as opposed to two.

Transportation times are reduced because goods do not go through an intermediary warehouse at the distributor level, and as a result, delivery times are far more predictable. Where the supplier has multiple branches the delivery times are improved again, for example, interstate dealers for the distributor are being supplied by their local state branch.

However, not all goods are suited to this process. Those that are a perfect fit for the strategy include locally supplied parts and consumable goods. For example, in the automotive industry this might include high turnover items such as tyres, oil and batteries. These can be supplied directly using local authorised suppliers. In addition, some automotive dealers have expanded that process within the network to incorporate services such as the fitting of tow-bars, sports kits or spoiler kits. Large components are an example of goods which may best be handled through a distributor. For example, it would not be cost-effective for engines to be shipped from an overseas supplier directly to a dealer, with the transportation and logistics costs being too great.

How it works

The operation of the Direct Supply system is relatively simple once it has been correctly set up. The order is placed through the distributor and then passed to the supplier with a delivery instruction – please deliver to customer. The supplier can then make use of local warehouses/branches. The distributor plays a pivotal role in the overall business. The distributor is able to negotiate volume based pricing and sets up the primary agreement with the supplier. This may even allow direct ordering from dealer to supplier, via a unique customer identification number. The distributor receives all notification statements and invoices from the supplier and in turn invoices the dealer. Without the distributor, the supplier’s financial systems would become very complicated, with numerous transactions with many dealers. Additionally some suppliers are not interested in trading directly with the retail outlets due to their low volume. The distributor therefore is required to negotiate with the supplier and manage the financial process with individual dealers.

Advantages for distributor, supplier and dealer

For the distributor, the stock is virtually passed through the warehouse, and the supplier maintains control and responsibility over all of the physical supply chain process, just as they would when supplying to the distributor’s warehouses. The cost of additional warehousing is eliminated and this benefits both the distributor and dealer. Another important benefit is the reduction in the number of goods with expiry times in the distributor’s warehouse. Generally, a distributor would incur a cost of continually reviewing and checking goods with respect to expiry and shipping dates. This is largely eliminated for high demand items that can be supplied directly.

While the benefits for the supplier may not be as obvious one significant advantage is that the time to meet distributor supply requirements is spread, potentially, over several branches, which eases pressure on the supplier’s distribution network. This also results in higher levels of customer satisfaction for the distributor and their dealers. Forecasting is also improved because direct supply provides an indication of the real usage of goods. The supplier can compete more effectively and as such, encourage the use of genuine/authorised components.

The advantages for the dealer include significant cost reductions, which are passed from the distributor, and the delivery of goods is more predictable without the additional distribution process. The dealer can implement a more cost efficient and streamlined ordering process that addresses actual, as opposed to expected, requirements and they also benefit from a simplified ordering system and reduced pricing of parts. Direct Supply, by removing one complete step in the traditional supply chain, streamlines the process – the goods are sent directly from supplier to dealer. The distributor still plays a pivotal role, managing the process, undertaking price negotiations, handling financial transactions and maintaining the communication channel. The result is a more efficient supply chain with reduced warehousing, transport and administrative costs, increased efficiency, faster delivery of goods and greater customer satisfaction.

Summary

Supplying products directly from the supplier to the dealer significantly enhances and streamlines the supply chain process. Direct benefits across the board to the supplier, distributor and the dealer include reduced delivery times that are more predictable as well as reduced costs in product handling, warehousing and transportation. The successful management of the entire direct supply process, maintaining control of the products through administration, financial, warehouse and inventory processes can be achieved with a well structured supply chain management system. The benefits are:

  • Increased efficiency
  • Cost reduction
  • Faster delivery
  • Increased customer satisfaction
  • Reduced handling of goods
  • Reduced transportation of goods

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Bike Helmets As Life Saving Accessories

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Anyone who spends a lot of time riding a motorcycle or lists biking as his passion will recognize that his life is on the line whenever he devotes time to his mode of transport. As a result, not only should he spend time learning the finer points of riding a bike and all the related aspects of maintaining and fine tuning the vehicle, he should also spend as much effort and money ensuring that the right motorcycle accessories are used to protect his life and longevity. Many riders experience the thrill of high speed rides with the wind blowing in his face and are hooked on the adrenalin rush that comes with it, but the dangers and risks associated with such joy has often been ignored by just as many motorcyclists, who opt to gamble with their lives in a bid to taste the thrills or are eager to save time.

What are the accessories that a motorcycle enthusiast should have that would provide an additional layer of protection that could potentially save his life? There are many accessories which help achieve that aim, such as bike jackets, gloves, pants and of course, the ever essential bike helmet. However, it is surprising how many riders choose to ignore these items either because they prefer to save some money or time. Some of these essential biker apparel are admittedly expensive, but with better quality comes a tradeoff of cost. Bikers are also impatient individuals, and many would rather choose to save a few seconds of getting in gear, than to spend a few minutes changing in and out of their jackets, pants and helmet which could in turn be a life saver.

One of the most important bike apparel that a motorcycle rider should own is the bike helmet. It is interesting how this would seem to be the most essential accessory in any biker’s arsenal, but many choose to ignore it. You would be hard pressed not to find at least a handful of such individuals on the road who choose to partake in a gamble with death when all it would take to protect themselves in a motorcycle crash could just be that high quality bike helmet that cushions his fall or prevents a neck break should he crash head on into an obstacle. The cost of such helmets today is feasible and affordable for those who choose a bike as their main transportation mode, and is often a must with regards to transport regulations in many countries.

It is strange that the same motorcyclists would actually be willing to fork out a huge sum to modify their bikes or beautify it with a trendy new paintjob, but are hesitant in a fraction of the sum to ensure their lives are protected. With the advent of new technology, there are many high quality bike helmets from trusted manufacturers such as the Bell helmets and Scorpion lines which boast material and make that surpasses the standard for maximum protection and those who demand a fashion sense along with their bike accessories. There are also helmets which are now built with lightweight carbon fiber, resulting in surprisingly light but increasingly sturdy headgear. The streamlined look of modern helmets has also allowed bike racers to view them as necessary in their search for that extra speed advantage in races.

As a rider, you are also continually exposed to the weather elements such as sun and rain. Wearing a bike helmet will allow you protection against this. In fact, they can often increase the comfort level you will experience riding a bike. Imagine how the helmet visor can be a heaven sent against the glare of the sun or the pelting rain, which might actually be a potential safety hazard during your journey. A moment’s distraction due to the reflecting glare of the sun can lead to an unwanted accident and a regretful loss of life. The helmet also contributes directly to better health as it prevents you from getting sunburn or ending up wet and susceptible to colds when riding through a rainstorm.

With so many advantages from using bike helmets, it should be one of the first items motorcyclists choose to purchase when they walk into a bike shop. No matter what, convenience and cost should never be prioritized over one’s safety, and this bike accessory could be crucial to enjoying many more years of riding joy.

Monitoring Your IT Infrastructure With Vulnerability Severity Ratings

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Monitoring your IT infrastructure with vulnerability severity ratings sounds complicated, but once you understand the process, it’s easy to implement into your business. By utilizing a rating system that helps determine where the gaps are in your infrastructure, you can find them, close them, and get on with business.

Your IT infrastructure is the hardware used to connect computers and users in your company. Cables, servers, routers, etc. are all part of the infrastructure. There’s often a large focus on securing the software end of a system, but overlooking the hardware infrastructure can leave your company at risk. Imagine what would happen if your network slowed to a crawl or crashed due to a spike in volume. Your company may not have access to vital systems and resources, and business could all but shut down. Not only is this bad for your reputation and customers, but it’s bad for your bottom line.

Benefits of Vulnerability Ratings

The first step in monitoring your IT infrastructure is to assess which pieces are the most vital to your operations. The vulnerability severity ratings can help you to determine which aspect of your hardware to address first. If you have a hardware failure that is affecting the performance of your firewall, is this more or less important than network issues causing data loss? How do you store your data, and are there ways to store it more securely and that allow for quicker access to it? What if some data is lost-how easily can it be recovered? All of these are questions that can be addressed with vulnerability severity ratings.

Another way that vulnerability severity ratings can help you monitor your IT infrastructure is through helping you find potential gaps that could cause cascading failures. The risk of one piece of your infrastructure failing may, in itself, not be critical, but if it causes a domino effect of network failures that crash your operations, your business will come to a halt along with your network. Using these ratings to determine which pieces of your infrastructure need additional space, or which ones have simply become obsolete, can help reduce the likelihood of a critical system failure due to a cascade.

Assessing and monitoring your IT infrastructure with vulnerability severity ratings is an important step toward ensuring that your network will run smoothly and securely. Finding gaps and closing them can reduce downtime, speed up your network, and keep your data safe – all of which impact your bottom line. By knowing what pieces are the most vulnerable and how to address them, you are in a better position to keep your systems stable and get down to business.

Trip Mess Up? Travel Insurance Can Save Huge Money

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For the last few years, we have been witnessing a boom in tourism industry all over the world and as our workload consumed most of our time, vacation gains its relevancy and presence.

So,traveling becomes one of the greatest pleasures of life, which makes it long-awaited and expensive. It becomes sad when things go wrong before or during your vacation. Because of your illness or personal reasons, you might suddenly need to cancel or postpone your travel plans.

There are such other things as cancellations, trip delays, loss of luggages, damage to luggages, emergencies, travel agent’s fraudulent act etc. which could lead you to huge financial loss or put you on risk.Now,what do you do in this situation? The best option would be, you have to have a travel insurance for those potential risk.Isn’t it?

Travel insurance provide you protection against these unseen challenges and compensate you of the monetary loss you suffered because of cancellation of your vacation. Some of you may want to enjoy driving during the vacation, in this case you can think of advantageous car rental insurance as because your own (cheap?)auto insurance policy may not cover your car in a different country.

It does not matter what country you are in for your trip, your belongings, your luggage, or your health, the right kind of travel insurance policy will save you tons of money and harassment and give you the opportunity to enjoy trip and greatest pleasures of life to its fullest.