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Who owns the stock, Sage ERP X3 system or warehouse management system?


Johannesburg, 29 May 2015

This question is one that many sites looking to implement a warehouse system forget to ask. It is a subtle question and can make the difference between a successful joined up system and two silos of information with users looking at different versions of the truth!

The answer to where should the stock information be held will be different, depending on the size of the business, yet in most cases the Sage ERP X3 system should own the stock and must be the master record.

The logic behind this is that for a business or the ERP system, stock in the warehouse is only one facet, and while important to the warehouse user, someone in the accounts office would be more interested in the value of the stock as opposed to being aware of its location. However, both want to accurately know how many products are in the business.

An accurate stock holding and where that stock is held will be used to guide others to define what should be manufactured; what should be purchased; and what should be moved between regions to meet the business demands.

In Datalinx's experience, many suppliers of warehouse systems do not consider the business as a whole, but concentrate only the warehouse and how to get the physical stock in through and out of the business.

This question of stock ownership is often forgotten or not appreciated, and Datalinx has seen many sites, six months into implementing a warehouse solution, find the stock records that the warehouse has, and the stock level the rest of the business thinks it has, are very different and that no one trusts the figures in either system.

The result of this is that the business is only a small step on from where they hoped to be when the warehouse project was conceived. Therefore, getting the two systems reliably interfaced is often larger than the implementation of the warehouse system.

So, who is at fault here? For the company making the choice of systems and ultimately the one who has the most to lose in this discussion, as the famous quote from Donald Rumsfeld said: "This is one of the unknown unknowns," as it is one of the items that a business does not know it does not know.

But, should the suppliers of the system not highlight this? Why should they? After all, their warehouse system, in a closed environment, will show the right stock holding; therefore their systems will not be at fault. It just shows a different stock holding to the rest of the business.

If you are considering a warehouse system, add this to your list of questions; it may just make the difference between a project success and a project failure.

Integrated warehousing

The Datalinx Warehouse Manager X3 application is a warehouse management system embedded within the business processes of Sage ERP X3, allowing operatives in the warehouse to be wirelessly connected to Sage ERP X3 via dedicated Warehouse Manager screens, and utilise the latest mobile devices within the warehouse environment.

The Datalinx Warehouse Manager X3 application provides the Sage ERP X3 user with the latest in warehouse management systems and is designed and developed to deliver the key warehousing functionality that today's businesses require, yet achieve this without compromising or taking control from the Sage ERP X3 system at the core of the business.

Datalinx has been providing the Sage market with embedded warehouse solutions for over 25 years, and has in excess of 400 Sage sites, all utilising its Warehouse Manager applications. In line with other Datalinx systems, the company analysed the functionality within the core Sage ERP X3 package against the values and requirements of the Sage ERP X3 user to enable Datalinx to deliver a system that is warehouse centric and fully Sage ERP X3 aware.

The result of this is a warehouse management system embedded within the business processes of Sage ERP X3. This allows the operatives in the warehouse to be wirelessly connected to Sage ERP X3 via Datalinx's dedicated Warehouse Manager screens and utilise the latest mobile devices within the warehouse environment.

Quote

"With the growing demands within the supply chain for quick turnaround times, shorter delivery lead times and better management of returns policies, efficiency is key to success. The beauty of the Datalinx ethos for warehouse management systems embedded within Sage is that an organisation achieves one place of truth that everybody works to and where more informed decisions are made, which ultimately delivers a stronger, more efficient business."
Melvin Fletcher, Director of Sales and Marketing

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Sage ERP X3

Sage ERP X3 is Sage Group's global ERP solution for mid-sized companies and subsidiaries of large groups with international demands. For over 10 years, Sage ERP X3 has been a proven and comprehensive ERP solution addressing mid-market companies' specific requirements and challenges in industries from manufacturing and services, to distribution and many more. Its 5 100 customers in 100+ countries worldwide have chosen Sage ERP X3 because it helps companies grow forward with faster, simpler and flexible ERP. For further information, please visit www.sageerpx3.com.

Sage ERP Africa

Sage ERP Africa is a provider of business management solutions, including financial, distribution, service management, retail, warehouse management, project costing, manufacturing and CRM, to the mid-range market. Sage ERP solutions are delivered to 130 countries exclusively through a global network of solution providers, including over 150 throughout Africa. The Sage ERP Africa product line includes: Sage ERP X3, Sage 300 ERP (formerly Sage ERP Accpac), Sage CRM, Sage 300 ERP Retail and Sage ERP X3 Retail as well as Sage third party partner solutions. With a choice of languages, currencies, locations and legislations - Sage ERP offers efficient multi-company and multinational solutions.

The Sage Group

The Sage Group provides small and medium-sized organisations, and mid-market companies, with a range of easy-to-use, secure and efficient business management software and services - from accounting, HR and payroll, to payments, enterprise resource planning and customer relationship management. Its customers receive continuous advice and support through its global network of local experts to help them solve their business problems, giving them the confidence to achieve their business ambitions. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has millions of customers and circa 13 000 employees in 23 countries covering the UK and Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil. For further information, please visit www.sage.com.

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