Brittany Meeks, Dynamics GP Sales and Marketing Assistant

As a newbie sales and marketing assistant at Custom Information Services, I kept getting thrown technical terms that I was unable to grasp.  That is until I did some research and discovered the easy way to understand and implement such terms or questions as, “What’s the difference between virtualization and cloud computing?”  Originally, I couldn’t even tell you the meaning of virtualization or cloud computing, let alone what the differences were.   Since we implement and support these technologies I had to understand the definitions quickly!

Virtualization is a computing technology that enables a single user to access multiple physical devices.  Another way to look at it is a single computer controlling multiple machines, or one operating system utilizing multiple computers to analyze a database.  Virtualization may also be used for running multiple applications on each server rather than just one; this in turn reduces the number of servers companies need to purchase and manage.  It enables you to consolidate your servers and do more with less hardware. It also lets you support more users per piece of hardware, deliver applications, and run applications faster.  Follow this link for more detail on virtualization VirtualizationWhitePaper.pdf

Cloud computing offers scalable infrastructure and software off site, saving labor, hardware, and power costs.  Financially, the cloud’s virtual resources are typically cheaper than dedicated physical resources connected to a personal computer or network.  With cloud computing, the software programs you use aren’t run from your personal computer, but  rather are stored on servers housed elsewhere and accessed via the Internet.  If your computer crashes, the software is still available for others to use.  Simply, the cloud is a collection of computers and servers that are publicly accessible via the Internet.  Here is something else I found online which may be helpful in better understanding cloud services Microsoft Cloud Services.pdf

One way to look at it is that virtualization is basically one physical computer pretending to be many computing environments whereas cloud computing is many different computers pretending to be the one computing environment (hence user scaling).  Virtualization provides flexibility that is a great match for cloud computing.  Moreover, cloud computing can be defined based on the virtual machine containers created with virtualization.  Virtualization is not always necessary in cloud computing; however, you can use it as the basis.  Cloud computing is an approach for the delivery of services while virtualization is one possible service that could be delivered.  Large corporations with little downtime tolerance and airtight security requirements may find that virtualization fits them best.  Smaller businesses are more likely to profit more with cloud computing, allowing them to focus on their mission while leaving IT chores to those who can do more for less.

Plainly, virtualization provides more servers on the same hardware and cloud computing provides measured resources while paying for what you use.  While it is not uncommon to hear people discuss them interchangeably, they are very different approaches to solving the problem of maximizing the use of available resources.  They differ in many ways and that also leads to some important considerations when selecting between the two.  Not only do we offer Dynamics GP, but we also offer services for cloud and virtualization for your business applications.   Our new website set for a September go live will have more information on this subject.

Give us a call or drop us an email at bmeeks@customis.com or call 817-640-0016 and ask for Brittany or Nancy.

Custom Information Services is a Microsoft Dynamics GP reseller in North Texas and has specialized in selling and implementing network services, manufacturing and accounting software to mid-sized companies for over 20 years.

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Choosing Microsoft Dynamics GP is a good business decision for just about any company across all industries.   I am probably a bit prejudiced since I sell Dynamics GP and its associated products.  GP solves not only accounting, manufacturing, distribution, but niche business processing issues.   My job is also a lot of fun; I meet new people everyday, I learn about many business processes and industries.  In my sales process I discuss our implementation process in detail, but often the prospect and I are so focused on getting the software decision made that we don’t talk about what happens after go-live.  I admit it, I am not perfect, and I forget to tell our customers about all our service offerings.   Custom Information Services has network services, servers, phone systems, managed services, hosting, report writing with SQL Reporting Services (SRS), Crystal, SmartConnect, SmartList Builder, Integrations, GP customizations (rarely needed), etc.,  and of course our GP support team.  I don’t like bringing the whole ‘truck’ with me on a sales call, I think it confuses my real focus; solving the prospect’s issues with new business software.  

It is important for resellers to notify the buyer of what they are buying including the annual maintenance and support plans.  Custom Information Services strongly recommends that customers stay on maintenance.   Paying your annual maintenance ensures you have access to CustomerSource which includes: payroll updates, software updates and patches, FREE online training for GP, Knowledge Base , paid support calls (the number of calls varies based on the maintenance/support plan you purchase).  Keeping your initial investment supported also ensures you can upgrade and stay on a supported version of your software.  Why make the investment and then not keep it current?  Customers should upgrade at least every other version. 

Ask your reseller what you can expect to pay in annual maintenance so you can include it in your future budgets. You should also expect your reseller to charge you for support calls.  Keep in mind that our goal is to get you self sufficient during our implementations.  However we are available when you need us -  we don’t desert you after go-live.

Hire someone new?  Use the tools you purchased from GP.  Have them go through the GP Orientation eLearning and then if desired, have them go through the eLearning for the module (s) they will be working with.   I am confident you will have fewer questions on how they should be doing their day to day work.   By the way, I use the help functions in GP all the time in preparing for a demonstration.  I have also gone through the eLearning. 

Our certification requirements for GP include classes, eLearning and then testing at Prometrics.   But there is value from the training; it helps us support our customers better.    

When you buy your new GP software you have access to CustomerSource.  Please use it!  I recommend that you get a Windows Live ID, if you don’t have one, as soon as you sign the sales order.  You have to have this to login for access to CustomerSource.  Add @microsoft.com to your safe domain email list.

Custom Information Services also offers the following for supporting our customers after implementation
For post go live support issues please use our support request email address:– srq@customis.com or call 817-640-0016 and speak to our customer service team that notifies our consulting team.   This should be the way you request support assistance after you go live.  Emailing the consultant directly is best during the implementation. Sending email to srq@customis.com connects the sent email address to your company records in our service management software.  The email becomes a support ticket so it is important to include a summary of your issue in the subject line, i.e., GP New Hire Setup Needed.  The customer service manager then schedules the appropriate consultant or tech to take care of your issue.  

Going through the customer service department allows for more visibility of your issue to our team upon receipt of your call or email and until the ticket is closed.  You also receive emails updating you on your ticket status.  

CIS has completed implementations for 20 years and has many active customers.  We make every effort to assist our customers and welcome feedback at anytime. 

 If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 109 or by emailing me at nphillippi@customis.com. 

Custom Information Services is a Dynamics reseller in the Dallas, Fort Worth area of Texas.

by Custom Information Services, a Microsoft Dynamics GP Partner in Texas

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Microsoft Dynamics GP offers strong accounting, intercompany, manufacturing, and distribution functionality.  Dynamics GP can be set up with  simple processing steps for small offices or for large offices. GP can be set up with multiple processing steps and workflow for high volume transactions.  Either way, the software offers the checks and balances needed to ensure that mistakes are not made or can be easily corrected with a full audit trail. 

The last promotion Microsoft offered was the 3 users for a $1 which ended on June 25^th.  This promotion greatly expanded the visibility in the marketplace including companies with a small accounting group.   I recently met with a small two user company that will utilize Accounts Payable, Fixed Assets, General Ledger, and Bank Reconciliation.  The controller is concerned that the AP clerk will make mistakes in the new system since he is not an accountant.  We encounter this issue with most of our customers.  Clerical staff does not have to have strong accounting skills.   The software can be set up to default GL accounts based on the vendor, customer, item, service, and / or site specific.  Therefore your clerk does not even have to look up accounts if that is your preference.  This controller can also place security on the posting function and even at the account level so the controller or manager can run an edit list first, make corrections if needed, and then post.  The controller can make corrections on posted transactions easily with security access. 

Which brings up another feature; the controller has the ability to close a period for data entry with a click of a button.  Perhaps you don’t want your staff to enter transactions in July for June transactions.  All you have to do is close June for processing.  If you need to make adjustments then you open the period and enter anything you need to for the last period.  You can also close June for Sales / AR processing, but keep Payables and GL open. 

Whether you have 2 or 200 users Dynamics GP can be setup to work efficiently with ease and with full view of transactions and the security with audit trails to make corrections to ensure your staff does not need to be accountants!  One of our customers told me that she liked GP because it was so hard for her staff to make mistakes and that when they do the software is forgiving…

If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 109 or by emailing me at nphillippi@customis.com. 

Custom Information Services is a Dynamics reseller in Dallas, Fort Worth Texas.

by Custom Information Services, a Microsoft Dynamics GP Partner in Texas

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By Scott Driggs, Custom Information Services

I once worked with a client who had a rather interesting story to tell. The company was a family owned business that had been running a custom application for years and years. The owner retired and passed the reins of the company to the next generation. The new owners did as any new management team would do and they started learning all that they could about the parts of the business they were less familiar with. When they began to dig into the home grown accounting and financials they were surprised to receive a great deal of resistance from the controller. Eventually they brought in an external auditor and discovered that the controller had been creating fictional entries and pocketing a great deal of cash that belonged to the company.

The right decision was made to begin implementing changes including GAAP/Accounting Standards. Unfortunately that meant that the company was forced to retrench to about half of their previous size. In their post-mortem analysis they concluded that one of the primary reasons the management team was unsuccessful at discovering that this was going on was that they were using a custom solution that had inadequate financial controls and auditing capabilities built in. Also, because the solution was custom, the few that knew the most about the solution were able to manipulate the program without others discovering what they were doing.  The client determined that it was time to put a system in place with robust financial controls and audit trail functionality.

The client decided to implement Microsoft Dynamics GP. Some of the reasons for this include:

• A rigorous system of internal controls
• A pessimistic security framework
• Role based security
• Built in audit trails that make fraud easier to detect
• Integration to other business operational software packages – NO need to customize!

In my experience, companies often feel that they do not have the option to select an industry standard solution like Microsoft Dynamics GP because they have a “unique” business. “We have looked at other packages and nothing does things the way we need it to” is often what I hear from those on the management team. They feel that they needed to develop a custom solution from scratch to handle their business processes.   This is simply not true in most cases.  Dynamics GP is a very robust accounting, distribution, and manufacturing solution.  If the core package does not meet a company’s needs we always research and find an ISV or Independent Software Vendor that has already developed the business process solution that integrates seamlessly with Dynamics GP.  Then we prove it to the company through references and a product demonstration.  

 If a company truly has a taste for custom programming and has the need, the client invariably will be developing the solution with industry-standard software-development technologies, such as the Microsoft .NET Framework, for integration with other systems and development of new functionality. In addition, developers can use development languages such as Microsoft Visual C++ and C#, along with Microsoft Dynamics software-development kits and other developer documentation to ensure efficient configuration and development.

• You can develop a custom application that meets the unique requirements of your business AND still have the core financials of a product like Microsoft Dynamics GP with all the audit trails and security framework already in place.
• Your programmers can focus on only building the business processes that are unique to your business and not reinventing a general ledger and inventory system.
• Doing it this way has the potential to cut your development time in half and greatly reduces the risk of project failure. 

Either way you go, using  Dynamics GP with out of the box functionality, an add-on from an ISV, or customer code, the flexibility of a Dynamics GP allows you to leverage the foundation of Microsoft Dynamics GP.

Want to find out how much your custom solution is costing you? Give us a call or drop us an email at sdriggs@customis.com or call 817-640-0016 and ask for Scott or Nancy.

Custom Information Services is a Microsoft Dynamics GP reseller in North Texas and has specialized in selling and implementing manufacturing and accounting software to mid-sized companies for about 20 years.

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Food, Chemical, and Pharmaceutical distribution and manufacturing companies along with anyone that has government contracts all know that quality control and lot traceability are paramount in the procurement and manufacturing process.  With the current state of the Gulf of Mexico I am confident that companies who produce products for the oil industry are going to come under close scrutiny.  

I must say on a personal note that I love Gulf shrimp (it is the only kind I buy) and I am from Louisiana so these events have impacted my family, friends and my dinner table.   I am very concerned and unhappy about the environmental and economic impact of this tragic event. 

First and foremost operational controls are the first step to ensuring your products are of the highest quality and that in the event of a recall you as a business owner can quickly access the information needed for a recall.   However if you are operating your company with a big chief tablet and a number two pencil then you may be in for a challenge in locating the manufacturing work order and/or purchase receipts for the product being recalled.   I am not saying that it is impossible, however it will take a lot more time to research and hopefully your staff has good penmanship.

One major problem that we encounter is that SOME companies that lot/serial track run into problems if they do not have good inventory controls (see my article on this subject). If you don’t have good inventory controls then lot/serial tracking is going to be a nightmare for you.  Your first step is to make sure you are solid operationally and you have good inventory controls.

Good personnel are essential in an industry that has compliance concerns.  A solid materials receiver is of the utmost importance.  They see the products coming in the door and if you don’t have Quality Control (QC) review all products then items can get in inventory that are not up to par.   

Production personnel should also pull the correct lot/serial numbers or record the right lot/serials after use.  QC should also occur during or after staging, then at specific points in your manufacturing process. 

It goes without saying that the only fast and good way to document lots, serial numbers, quality control and be able to complete your products’ history is with a good business software system that you can record the following for compliance and traceability.  Notice that I did not say cheap… business software is an investment in your company’s future.  Get yourself a good vendor that really understands your business needs and that you can trust.  Of course I fit that bill and always look out for the best interest of my prospects and customers. 

Lot track vendor materials.  If lot tracking is not the norm for your business you should start lot/serial tracking with only your top materials then add a few more each month.  Your best bet is to use the vendor lot number.

Enter the lot number into your ERP system like Dynamics GP when material is received.  Don’t worry at this point about paying the vendor or checking costs; that is why we have accrued receipts in GP.  Your Accounts Payable clerk will take care of updating any costs when they get the invoice.

Have QC review any high profile or all products and have a pass/fail QC program in place that can track specific attributes.  Programs like Vicinity Manufacturing and Horizon’s Manufacturing that integrate to Dynamics GP have great tools for this activity.  It is usually a good idea even in smaller companies to have someone other than the receiving staff complete this task.  Have an area set aside for products that require QC.   Keep in mind that the QC results will follow the purchase order/purchase order receipt through the lifecycle of this product.  And if you are lot/serial tracking the same is true for the lot/serial number.

I realize that a lot of times you are waiting on a raw material to come in so you can start production, however I would not skip the QC test or review.

Some companies want the production staff to pull raw materials without having to specifically pick a lot/serial number then record the information during work in process (WIP).  This is fine and probably the most common practice.  However other companies tell the staff what to pick either on work order or on their handheld device.  Either way is fine depending on your business processes. 

I have recorded my lots/serial number and I have attached my QC results throughout the receiving and manufacturing process.  I sold the product AND recorded the lot/serial number on the order.  I relieved the right item when I picked the product for shipping.   (I didn’t even touch the distribution side or BOM/ECO revisions of business! Maybe another day…)

Now what?  Your customer calls and says that you shipped them an inferior product. 

If you use Dynamics GP you can-

• Find all transactions for a serial number (shown below)
• Find all transactions for a lot number
• Find serial numbers shipped to a customer
• Find lot numbers shipped to a customer
• Find serial numbers received from a vendor
• Find lot numbers received from a vendor

And

• Recall serial numbers shipped to customers
• Recall lot numbers shipped to customers
• Recall serial numbers where stocked
• Recall lot numbers where stocked

 

There also similar reports you can run within Dynamics GP to get the same data.  Vicinity Manufacturing and Horizon’s Manufacturing also offer these features.

I will follow-up with tracking quality control and BOM/ECO revisions in another article.   

Custom Information Services is a Microsoft Dynamics GP reseller in North Texas and has specialized in selling and implementing manufacturing and accounting software to mid-sized companies for about 20 years.

If you care to comment on the information above or have any questions please feel free to contact me by phone at 817-640-0016 ext 109 or email me at nphillippi@customis.com.

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I was asked last week to participate in a roundtable discussion on the state of the Manufacturing Software Industry.   I found that the questions provided by SoftwareAdvice.com were extremely pertinent to the current state of the  manufacturing industry – as I see it.  I would welcome your feedback on the same questions.  I always want to learn more about the manufacturing industry.

What is your perception of market activity (buying activity) levels relative to historical levels?

I am seeing movement in the manufacturing sector in making technology infrastructure investments.  Pre 2009 manufacturers were purchasing industry specific software at a steady rate; no significant deviation in buying patterns.  However in 2009 I continued to see the need for such investments, however purchases were deferred.  This has changed in 2010 due to several factors, one being that the need to improve processing is still there and in fact the urgency of procuring software and hardware to reduce redundant overhead processes has increased since companies did not spend budget money in 2009.

Does this activity vary between the enterprise market and the small and medium size enterprise market?

Since I focus on mid size companies it is hard for me to gauge the variance.  However, we do have some enterprise and smaller customers that use our IT services, and we have seen an increase in IT managed services.

Does this activity vary by industry? For example, is there more activity in basic CPG and food processing relative to high tech and electronics?

Chemical manufacturing and distribution seems to be the industry that has sustained the most growth through the slow economy.  Chemical companies are buying or adding functionality to their existing software to improve their business software and processes which often includes server hardware, software and network services.

For deals that are getting done, what are the main reasons people are buying (e.g. cheaper total cost of ownership, vendor reliability, proven experience with similar buyers, etc).

Purchases of new technology is typically based on a couple of factors; technology upgrades with the ever improving products from the Microsoft stack and to reduce overhead processes.  Basically do more with less resources and redundancy.  Manual redundancy/date entry in processing is not only labor intensive it also is very error prone.  Microsoft Dynamics GP offers a plethora of add on products for just about any industry with a solid inventory and financial package.  There is no need in this day and age to not have a totally integrated system with no home grown software.   Customers are very technically savvy these days and know the value of a good software package on a good server and network.

Do you see increased adoption of SaaS? If yes, why? If not, for what reasons?

I am not seeing an adoption of SaaS by manufacturers.  Clients still want control of where their server is located and the apparent ease of access, even though this is not a real issue, just a perception.  We do have some customers that are hosted by CIS, however at this time they are not manufacturing customers.  I have had some interest in this solution, however no matter how savvy the customer is, the issue of secure formulas and bill of materials is still at the forefront.  The mind set will need to change to trust the SaaS model just as if the server was in their building.

A growing number of manufacturers are moving offshore. Do you find manufacturers implementing modern systems just to be able to communicate with and manage their offshore plants and partners?

Overseas plant communication can be an issue for parent companies located in the USA.  Often times the ERP package the USA company is running is not offered in a localized language for the overseas company so they will run separate systems.  However importing financial data into Dynamics is not a problem; the issue is getting the data exported and sent to the parent company in a timely manner.

How are vendors adjusting prices to compensate for the state of our economy?

Vendors have reduced pricing to spur sales at the cost of profits.  Product specials is the primary way vendors facilitate price reductions.  Specials allow vendors to state end dates to the pricing therefore customers do not have the mindset that this is a permanent price change.  Hence the need for complex pricing structures in their application software or the vendor has a lot of manual entries to accommodate the customer and mistakes will be made, credit memos generated and a whole lot more work is the result, further reducing profits.  I recommend a good specials module for order entry staff such as Compass, Item Price Matrix from Horizon and of course GP Extended Pricing.

Are more manufacturers implementing integrated ERP systems or best-of-breed applications? For what reasons?

Manufacturers are implementing integrated systems since they understand that when you have a best-of-breed you don’t always get what you want.  Let me explain.  If you buy an integrated system you have the options of buying the core accounting and distribution that works best for your company.  You then can buy the manufacturing package that best fits your industry and processing; food, chemical, widgets, etc.  You don’t have to compromise with functionality or integration points purchasing an integrated system.  Best-of-breed in most cases has one good set of functions; either it is financial, or manufacturing or distribution.  If you are buying a best – of-breed for a manufacturing company then I will bet that the financials and distribution are weak at best.  Most of the integrated products that work with Dynamics GP are so integrated that the end-user does not even know they are using a different product window.

Custom Information Services is a Microsoft Dynamics GP reseller in North Texas and has specialized in selling and implementing formula based software to mid-sized companies for over 20 years.

If you care to comment on the information above or have any questions please feel free to contact me at nphillippi@customis.com.

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Why now may be the best time to consider replacing your legacy application

Article by Scott Driggs, Custom Information Services

When making the decision about Investing in a new solution vs. maintaining an existing legacy application there are many factors to consider. You need to weigh all of the costs of maintaining the existing application against the costs of implementing your new solution. What are the new benefits that you would hope to get out of a new solution?  Of course the inherent assumption is that at some point you will need to replace your legacy solution. The question is how expensive is it to maintain and what is your tolerance for risk.   

How can you tell if you are running a legacy application?
As a rule of thumb, if you are running any of the following you are probably on a legacy system: Mainframe applications such as those that run Cobol on an AS/400, MS Dos based applications, Green screen terminal emulators, or outdated midmarket solutions that have been sold multiple times to different software owners who have not invested in improving the solution.

What are my Risks?
Before we even start talking about cost… it is important to first talk a little about Risk.  There are a number of risks that you should keep in mind when thinking about your legacy solution. The risks of solution include hardware risk, software risk, security risk and support risk.

Hardware Risk: In general, the risk of a hardware failure increases with the age of the hardware. Through the use of regular backups, failover systems and redundant hardware this risk can be reduced.

Software risk: Many software companies support multiple products. Not all of these products receive the same amount of love and care when it comes to reinvesting in the solution. Be particularly careful if your legacy application is one that the software company is not making additional investment in.

Security Risk: The security risk for legacy applications is typically rather low. The hardware and software that run them tend to be isolated from the outside world and have little opportunity to succumb to external threats. From an internal security perspective, adequate procedures and controls have usually been worked out years ago. As long as those are still in place and are periodically reviewed you should be good. There is one risk to watch for however. As the number of system experts decreases within a company the risk of internal financial fraud increases. There have been numerous examples of financial and IT executives in recent years who thought they could get away with financial fraud because they were the only ones who knew the legacy system.

Support Risk: Whether you are supporting your legacy application with internal staff, through the software manufacturer, or through a value added reseller of the solution I think we will all agree that for legacy applications, each year there are fewer and fewer people that could support your solution. Anyone who has had to go through this recently can attest that it is harder to find and secure the right resources to support your application.

 Your Next Solution
Of course, putting in a new solution is not without risks either. The primary risks to consider when implementing a new solution are implementation risk, poor user adoption and security.

Implementation Risk: This is the risk that the project will fail to achieve the desired business goals within the stated budget.  Checking a partner’s references to see how they did with other companies is one way to reduce this risk. Careful planning with your implementation partner can also reduce these risks. A thorough implementation plan with clearly defined roles and responsibilities for implementation consultants and the internal resources is vital. This plan should have a time frame and milestones associated with it. It is also important to anticipate potential challenging situations to make sure you and your partner are on the same page about how to deal with those situations as they come up during implementation.

Poor user adoption: Often with legacy applications, your staff has been using the solution for 10 or even 20 years. They know it and have become comfortable with it despite the solution shortcomings. If not given an opportunity to provide input in the selection of and design of the new solution there is a good chance that there will be significant resistance to adopting it. There is nothing worse than making a significant investment in new technology only to end up going back to your legacy application because of poor user adoption.

Security: Newer enterprise applications like Microsoft Dynamics GP allow the business operations of the entire company to be managed from a single application and single database. They also make it easier than ever to share business intelligence and vital information within the company as well as with your vendors and customers. With these additional capabilities it is critical to take the time up front to correctly set up the security framework to ensure that information is only accessible to those who should have access to it. 

Will the new solution cost less?
To even begin to be able to ask this question, you need to first understand how much your legacy application really costs? Here are some of the major costs to look for:

• Employee Costs: Multiply the number of employees (can be fractional) by the salary + benefits of that employee
• Consulting Costs: Add up all of the money spent on consultants, programmers, and partners for your legacy system last year
• Hardware Costs: Divide the anticipated replacement cost of your hardware by the number of years of anticipated use… this gives a good estimate of the annual hardware costs.
• Energy Costs: A number of technologies including virtualization and processors that require less power have greatly reduced the energy requirement for newer hardware. Total energy usage can often be reduced between 3 to 10 fold. If you know your price per Kilowatt hour it can be easy to calculate your potential energy savings. Just look up the QuickSpecs for your server to find the energy consumption or pull out your electric bill.
• Software Costs: Annual maintenance paid to software vendor + custom development for the year
• Downtime Costs: If you have experienced any downtimes with your legacy application multiply the hourly rates of all employees effected by the number of hours of downtime to get an approximation of the internal cost. If revenue systems were affected by the downtime, estimate lost sales and add that number to the internal productivity loss.

Once you have a good understanding of what your current costs are for your legacy application  you are in a position to make a useful comparison between your current solution and a new solution you may be considering. Of course the inherent assumption is that at some point the legacy application will need to be replaced. The question really is when should you replace it. If all of your annual expenses on your legacy application are more than the implementation costs of a new solution then this decision is an easy one to make. More often, the numbers don’t work out quite so clearly. Your partner for the new solution can typically help in coming up with a realistic Return on Investment for the solution.  Armed with this, it is simply a matter of comparing that with other internal projects that are competing for the same capital.

So back to the question at hand, Why is now a good time to consider making a switch?
In general Projects take 3 things, time, resources and money. During the upswing of the business cycle businesses typically do not have the time or resources to tackle these type of projects. That is why it is often best to embark on these projects during a downturn. Not only are time and resources more available internally, you can also get a better value for your invested capital. Not only is the cost of borrowing still extremely low but you also have many hungry software companies and implementation partners who will give you a better deal. For all these reasons, now may be the best time to look at replacing your legacy application with a current ERP solution like Microsoft Dynamics GP.

If you want to find out how much your legacy solution is costing you, give CIS a call or drop me an email. sdriggs@customis.com, 817-640-0016

Custom Information Services is a Microsoft Dynamics GP reseller in North Texas and has specialized in selling and implementing business software to mid-sized companies for over 20 years.

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Most formula manufacturers that I encounter are constantly looking at ways to improve their inventory costs and reliability.  Nothing is worse for them than having a customer order and/or production ticket ready for staging only to find that the raw materials are not available.   During my review of  business processes for prospects many times the Material Planner/Purchasing Manager is doing a visual review of the raw materials in the warehouse to verify  inventory quantities to either complete purchase orders or create the production schedule.  They don’t trust their ‘system’ numbers.  Raw material inventory integrity is often one of the biggest problems that I encounter with prospects.  

There could be many reasons why inventory control is such a pervasive problem:

1.  The use of separate accounting/financial systems for the inventory and manufacturing systems. Raw materials are ordered on one system and manually updated in another system.
2. The purchase receipts are not completed in a timely and correct manner.  Raw material is received at the wrong cost or wrong quantity.  Human error.  By the time the vendor invoice arrives the raw material has been consumed. 
3. Raw material quantities are purchased on one unit of measure but consumed in another unit of measure with incorrect conversion methods.
4. Quality control is not tracked therefore inferior materials are hitting production causing production to use more than the formula or batch ticket calls for.  Production is not recording actual. 
5. Not inputting quantities used for production or staging in a timely manner to relieve raw material inventory.   Not having a work in process (wip) of the manufacturing process takes several steps and time. 
6. Cycle counting is not in place.  Physical inventories occur once a year.   Once a year is pretty extreme!  Some companies complete this task once a month due to poor inventory controls. 

The majority of the companies I encounter with these problems are using two or more systems to manage their business.   Sometimes one or more of the business tools is a spreadsheet.  I have nothing against spreadsheets as long as they actually tie back to a database that is driven by real transactions.  One system for accounting and one system for manufacturing  makes no business sense to me.  This use of disparate systems can cause many problems; one being inventory control.    If you are selling out of one system and manufacturing in another how do you know what your demand is for production?  Is someone taking the sales orders and then filling out a production schedule?   Then someone is updating one system with the finished goods to ship and invoice… I have to enter vendor invoices into the accounting system to cut checks, but I am purchasing in another system…  Confusing?  This scenario demands a lot of manpower just to function on a day to day basis. 

These problems of course point to operational and personnel issues, but they also point out to the need for an integrated financial and manufacturing system that is inherently designed to track items 1 – 6 and more.    A  production and material planner should not be spending his days looking for raw material in your warehouse;  he should be on the phone getting you the best price available for the items. He should be able to feel confident that your system data is accurate and so should you.

Custom Information Services is a Microsoft Dynamics GP reseller in North Texas and has specialized in selling and implementing formula based software to mid-sized companies for about 20 years.

If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 109 or by emailing me at nphillippi@customis.com.

Custom Information Services is a Texas Microsoft Dynamics GP Partner

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Written by Scott Driggs,  Custom Information Services

One of the joys of my job at Custom Information Services is the opportunity to interact every week with literally dozens of financial decision makers across just about every industry.  As a Microsoft Dynamics GP  salesman I am in a unique position to see a cross section of the economy and learn first hand what individual companies are doing to overcome the challenges they are facing in the current economic climate.  I would like to share some snippets of these conversations with you in a new blog series I will call investing in a tight econonmy.  Hopefully it can give us not only a sense of optimism about the overall state of the economy, but perhaps it can also give some practical ideas worth duplicating in your own business.

Controller for $50M Wholesale Petroleum Distributor has Invested into the Downturn:

“Business has certainly slowed down for us. We have gone from growing each quarter to having flat sales for the last couple of quarters. As a management team we took advantage of this slowdown to make two needed investments in the business. The first thing that we did was to bring on two additional sales associates. Next we started looking for new software to run the business operations. The current solution was a small niche application that the business was quickly outgrowing. We felt like this was a good time to make this investment. As a more experienced management team we knew that business would eventually pick up. We also knew that this type of project would take a lot of time and energy that we might not have in the busy times.  I am happy to report that we are now live on our new ERP solution.  We anticipate that as a result of these investments that we made we will be in a better position to benefit from the upswing of this economic cycle.”

Ideas to consider:

• Move up the time table on large projects such as ERP implementations to take advantage of downtime
• Rather than cutting headcount, hire more sales associates because your competition is not

 $20M Chemical distributor and Water Treatment Services Company Diversifies Services:

“Business has actually been up for us this last year” according to their Controller.  “We attribute that to an increase in the demand for our products and services from more environmentally conscious consumers and businesses. We also think some of our success has come from increasing the percentage of revenue we derive from services.  We have expanded our service offerings for our oil field customers and have also brought the majority of the local transportation services we offered in house.”

Ideas to consider:

• Unable to raise prices? Increase the number and mix of services offered instead
• Bring a business process in house that you are currently contracting for
• The green spin: Highlight environmental differentiators between you and your competition

More to come next month:

If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 124 or by emailing me at sdriggs@customis.com

By Scott Driggs, Custom Information Services, a Dynamics reseller in Dallas, Fort Worth Texas. Texas Microsoft Dynamics GP Partner

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I am constantly surprised by the amount of interest we receive from the document management page of our website.  Folks from all over the world contact me for more information on the Altec doc-link document management and workflow solution.  The business needs are often based on the desire to reduce the redundant paperwork that floats around the office and ends up in file cabinets and then boxes for storage.  What most don’t realize is that the solution is really a lot more than paper reduction and storage.  The real savings is in the workflow and streamlining processes and in eliminating data entry errors. 

Typically our customers use the doc-link system to streamline accounts payable processing.  However there is also benefits in the sales order processing workflow.   I  am going to address accounts payable in this article since it was the top problem for our customers that have since implemented doc-link.

doc-link brings greater financial control of managing payables processing from receipt of vendor invoices to voucher entry. With doc-link users can match purchase orders, receivers and vendor invoices directly from the desktop for quick reconciliation and resolution. Users are also able to electronically view the invoice and supporting document from their desktops, streamlining paper matching processes.

1 Receive supplier invoices

Receive AP invoices from suppliers or remote offices by email, fax, electronic file transfer or mail. All mailed invoices are scanned.

2 Assign to AP processor queue

All captured supplier invoices are electronically distributed or assigned to an AP individual’s processor queue. Invoices can be pre-indexed for easy retrieval during the approval process.

3 Electronically authorize invoices

Through workflow, supplier invoices can be sent to a manager’s desktop electronically for approval. The authorization process is configured to resemble a company’s paper process. Approvers “electronically stamp” the invoice with the appropriate action (i.e. Approved, Disapproved, etc). The approval stamp is a permanent notation applied directly on the invoice image providing an unalterable audit. Once authorized, the invoices are sent electronically through workflow to the appropriate processing queue in AP.

4 Enter supplier invoices

Each accounts payable clerk receives authorized invoices electronically from managers. A side-by-side view of the invoice entry screen and the invoice image enables AP clerks to easily and quickly enter invoices. Users can also review all supporting documents such as purchase order, receiver, etc. from the invoice entry screen. (see image above)

5 Automatically index and electronically file entered invoices

Once the invoice is entered within Microsoft Dynamics® GP, the invoice image is automatically indexed with the invoice data and can be retrieved using any of the index values, eliminating the need to file multiple copies (i.e. by supplier, date, account or project). (see image below)

6 Review invoices for payment from the desktop

Payment is easier and faster with doc-link. The check signer or authorizer can review invoices and the corresponding EFT or check. When the payments are approved, doc-link automatically captures the remittance advice or check and stores it in doc-link. At the same time, the invoices are automatically indexed with the appropriate payment information (number and date).

Companies experience a significant productivity increase with their AP processing as the clerical and paper-intensive tasks are eliminated. With doc-link, users can:

• Get invoices and purchase orders to authorizers’ desktops without mailing, faxing, copying or manually moving documents.
• Electronically “rubber stamp” invoices and purchase order approvals.
• Email or fax documents requiring resolution directly from the desktop to suppliers and purchasing managers.
• Easily track all invoices currently in the authorization and resolution process.
• Drill down from the Microsoft Dynamics GP accounts payable screens to view invoices, purchase orders, checks and delivery receipts.

If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 109 or by emailing me at nphillippi@customis.com. 

Custom Information Services is a Dynamics and Doc-link reseller in Dallas, Fort Worth Texas.

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