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0 comments on “Traceability”

Traceability

Traceability is the ability to trace all processes from procurement of raw materials to production, consumption and disposal. Product quality and the rise in safety awareness are making traceability a very important asset into a lot of fields and industries, such as automotive, electronics, food, health and pharmaceutical. Traceability has been defined in the ISO 9001 standard from the International Organization for Standardization.

Today companies need to be up to the task to ensure continuity throughout the flow in the supply chain and quality control, that is why end to end business traceability is gaining a lot of recognition.

The effective management of quality and traceability information has become critical to the strategic and competitive success for a lot of companies.

The Problem

Traceability is widely utilized for preventing recall problems, minimizing damages, and especially to ensure quality management.

Without traceability, it is not possible to provide solution strategies that positively impact their indicators. Food and health industry, for example, is going through an increasing customer and legislative emphasis on both quality and safety, the regulations and the mandate for traceability systems, are creating pressure and set the bar very high on the performance of companies.

Therefore, the deficiencies related to inventory management prevent companies to make efficient integration of the factors involved in the supply chain. It also hinders the correct application of the processes to which the products are subjected, ranging from the assortment of raw materials to the warehouse, to delivery to the final consumer; making the related information unreliable.

The Implications

Traceability is a major factor for companies today; so a poor control and a bad management of the supply chain causes direct economic losses, as well as having an effect on the rest of the logistics chain, as it generates significant decreases in productivity that end up interfering in business processes and thereby subtracting the competitiveness of their economy, by not being able to identify where the problems or the opportunity areas are in the process and do something about it.

For some companies, the lack of traceability has an impact on their operational costs, increasing the lead time by making it harder to make well informed decisions due to the decreased availability of real time data; it also affects stock visibility that can influences the control of inventory volumes, which in turn can alter the value of insurance premiums, among others, because of control and quality issues which ultimately make products more expensive and less attractive.

The Solution

With LOVIS EOS companies have adequate traceability of their transactions and inventories, as well as the processes that impact the supply chain, having the ability to track and generate performance analysis of each movement of the products through the various stages, both in a forward and backward way. 

This is possible thanks to the ability to assign and identify lot numbers with all their attributions, such as, the supplier’s reference number, certificates of origin, expiration, location, purity of products, documentation, among other lot specifications, which results in being able to trace the processes that each of the products went through or in which status they are.

The Benefits

LOVIS EOS provides a solution to control material losses, manage waste, facilitate product localization, optimize inventories, maximize sales, measure supplier performance, increase productivity, and decrease production errors.

This way you can have the full story that helps to have an efficient decision-making in terms of quality, materials, process and even marketing, to guarantee the highest possible standards of product safety.

In addition to having other advantages, such as:

• Improved inventory management and control of product evolution.

• Allows analysis in product performance.

• Allows you to detect problems quickly and make decisions.Evaluate suppliers and materials.

• Evaluate suppliers and materials.

0 comments on “Mammoth Hunters”

Mammoth Hunters

A few weeks ago, during a lunch, the talk revolved around the Information Technologies and its impact on employment growth. One of the diners simply stated that IT not only inhibited but rather reduced it, so companies should not invest in “those technologies” as he called them. I pondered for a moment my answer and told them this imaginary version of the history of mammoth hunting.

In the beginning the tribes that hunted mammoths only had lianas, a bit of strategy, a lot of courage and, above all, a great need to bring food to their families. Every incursion into mammoth territory implied the loss of some members of the tribe, usually because of the wounds received in the heroic battle against the beast. Of course, the survival of humankind justified the high cost. The woman resignedly received the news that her partner would not return.

One day, one of the most creative members of the tribe, frustrated by the loss of human life during the long and difficult hunting of such tremendous beasts, and after much thought, discovered that scraping a long branch with obsidian or something similar produced an artefact much more effective and efficient than the liana to reach the proposed goal: the spear.

Almost immediately he realised that the skills developed to hunt with lianas were not the same as those developed to hunt with spears. He also discovered that members of the tribe began to take three different positions in relation to his invention.

The first was formed by what today we call the pioneers and early adopters, made up of 15% of the population, who are eager to try new technologies and willing to pay for the costs of their maturing process in exchange for being the first beneficiaries of their use. They soon learned that the combined use of lianas and spears produced better results. Also, that a smaller number of hunters was not only enough, but better at achieving the result. Both strategy and tactics had to evolve and adapt to the use of this new technology. Soon, their success rate increased and the loss of lives reduced, resulting in greater productivity. Some hunters lost their jobs. However, this group was able to exchange his surplus meat with other members of his tribe and other tribes. This generated opportunities for members who no longer participated in the hunt to develop their skills and other satisfiers and exchange them. So, this first group took the lead in the generation of wealth.

The second group is made up of about 35% the members of the tribe who wait to see a new technology at work and decide to use it. Their wait is based on the “cost savings associated with the maturing process” that the pioneers have had to pay for, but they pay the cost of their wait by always going after those who took the lead. They certainly get the benefits associated with the use and exploitation of the new technologies and generate wealth for their group, so the sooner they do it, the better.

The rest of the tribe’s population resists the use of “these technologies” as they are seen to be a threat. Harmful, perverse or much worse. They explain their rejection of the tradition of the use of lianas in hunting, of the mammoth and the high honour of losing one’s life this way. Also, in the loss of jobs in the hunters and any other explanations they can find. Typically, their rejection comes from the fear of being out of your comfort zone, pushed by these new technologies. They forget that at one time the lianas were a new technology, or in words of Carlos Castillo Peraza, “every tradition was born from innovation”.

Eventually all the members of all the tribes ended up using spears to hunt mammoths and they saw it as something perfectly normal, the pioneers in its use generated greater wealth, faster, the rest was doing so to the extent and to the degree that they adopted the new technology.

It is clear that new technologies reduce jobs, but only in the short term and do so typically in tedious, arduous, risky or plainly dangerous tasks for human beings. In in the medium and long term, information technologies generate wealth, which in turn generates less tedious, less risky and usually better paid jobs.

Information technologies are a clear example of this. I remember a picture I saw at some large corporate offices with a full room with several dozen desks, each one with his chair and his typewriter: the company’s billing room at the beginning of the last century. Today sales are made with fully automated information systems and invoice requires a very small number of people, which could well be zero. However, today this store chain generates several thousand more jobs than it did a hundred and fifty years ago.

Surely many competitors of this company were born by the same decade of the nineteen century and disappeared on the way. Some for lack of business or timely adoption of new technologies, others by the combination of both. The closure of those companies generated more net job losses over time than did investments in productivity and competitiveness that Liverpool, like many other companies, have made in a timely manner.(The world)Mexico needs more productive and competitive companies that can beat the battle of the (“beasts” In the manufacture Industry.) Asian, European and American manufacturers. Information technologies are a key element. Do we want to be hunters with spears or with lianas? Will we continue importing surpluses from other countries allowing them to accumulate wealth, or we want to export our production surpluses and generate greater wealth for our own? Always new opportunities are born to be pioneers and take the lead, let’s do it.

0 comments on “Logistic costs distribution”

Logistic costs distribution

Within the procurement process of a company, different aspects are involved that must be considered for its correct control and management.

A purchase involves logistical costs, which are the expenses incurred to place the product either local or imported, in the possession of the company, such as freight, insurance, duties and taxes, transport, hauling, storage, among others.

The expenses involved in this procurement process are transformed into costs as they are incorporated into a company’s operating process. Therefore, knowing the real cost is of great importance for making decisions and perform financial analyses in terms of measuring yields, as well as operational analyses for the correct valuation of inventories.

The Problem

Companies have different approaches in term of cost distribution which leads to incorrect accounting records. Regardless of the costing methodology, an improper allocation of costs directly affects the value assigned to the product.

The Implications

Not being able to rely on your accounting records may cause a wrong decision of strategies and does not reflect the real financial situation of the company.

The Solution

With LOVIS EOS companies can integrate all those expenses that are incurred in getting the goods to their warehouses, using the distribution factors that best suit their operation. Examples of these distribution factors are volume, weight, value of the goods, etc. or combination of them using formulas editable by the end users.

The Benefits

LOVIS EOS performs the proper distribution in such a way as to affect proportionately the product that is consumed without over-costing any other, in this way, having the appropriate costs per unit will help to improve decision-making.

This leads to the correct record of costs and valuation of inventories, in addition to giving companies the ability to carry out transactions in real time and thus avoid reclassifications or mismanagement.

0 comments on “Agile imports”

Agile imports

We currently live in a globalized world, in which interaction between countries has become indispensable. Factors such as new technologies, trade agreements, product innovation, as well as continuous improvements in international freight transport networks, among others, drive the process of internationalization of companies.

To cope with the irrepressible advance in international markets and increasingly competitive economies, companies create foreign trade strategies where exports and imports are increasingly relevant, entering different markets, with different regulations and requirements.

Foreign trade involves numerous and delicate customs procedures to be able to conclude a transaction, such as the tariff classification, which consists in assigning a numerical code created by the World Customs Organization to goods, this way companies can identify the goods that are imported and exported to set taxes, obligations and duties.

The Problem

Every time a company commits an import/export of goods, a tariff classification has to be made even if it’s the same good, which involves a lot of time spent resolving the paperwork.

Also, there are divergent opinions on the tariff classification leading to varied interpretations and applications within the legal framework.

The Implication

The classification of tariff fractions is very important for companies, as they are an instrument for planning their marketing logistics including the payment of taxes, checking the origin of the goods and applying preferential treatment. However, misclassification can result in sanctions, supplementary tax payments and in extreme cases it can lead to the destruction of the goods or their return to the country of origin.

The Solution

In LOVIS EOS these classifications are preconfigured so that before making the acquisition of the imported goods, companies can work with the forwarding agent to establish the most appropriate tariff fraction.

By doing this effort one time, LOVIS EOS will communicate the proper tariff code and description of the goods to the supplier and forwarding agency in subsequent imports, which helps to streamline and optimize customs and logistical procedures.

The Benefits

This results in companies making benefits such as:

  • Improving exchange of trade and information.
  • Simplifying description and coding of goods.
  • Schedule import payments, making the cash flow more efficient.
  • Streamline the import process and reduce time in custom duties.
0 comments on “Maximising Liquidity”

Maximising Liquidity

Maximising liquidity is one of the most important challenges for your company. The time, money and effort required to achieve it every day they keep you and your team in a permanent state of stress.

The problem

Knowing at all times and with total precision how much money the company has is essential to make intelligent decisions. This is not easy because the availability of cash depends on many variables:

  • Balances in banks and investments, checks or payments in transit, scheduled collections and the reliability of clients and debtors are some components of cash availability.
  • Collecting and updating this information every day requires an huge effort, the cost is very high and the possible errors generate great uncertainty.
  • The information generated by other areas, the necessary controls to ensure its quality and the total time necessary to have it available compromise the fluidity of the operation, while causing the loss of great opportunities.
  • Additional work to establish the degree of certainty of collection and the time and effort to
  • Communicate it and translate it into cash projections further wear down the organization.
  • Link the availability of cash and the scheduled collection with the Payment needs is another task that demands a lot of time and effort.

Deciding on each occasion what to pay based on the available cash, the degree of certainty of the collection, the expiration of the commitments and the opportunities for benefits for prompt payment, when the best tools are not available, makes this process laborious, complicated and subject to many errors with its logical consequences, both in financial costs and in additional operating costs.

Finally, having to repeat the work done due to constant changes, coupled with the lack of well-defined operating processes and aligned with the appropriate tools for optimal information management, make the cost increase exponentially and get lost even more. opportunities

The solution

At the precise moment when your Products or Services are billed, LOVIS EOS automatically creates the corresponding Accounts Receivable, with the balance in the original currency and its value in national currency.

In the same way, as soon as the Supplier Invoice is validated, the account payable record appears in the Cash Flow with its balance in the original currency and its value in national currency. Both types of transactions are internally linked to the bank account with which they usually operate your receivables and payments.

So, all the effort necessary to collect, link and present the Cash Flow, is carried out by LOVIS EOS immediately and automatically. Regardless of whether it is tens, thousands or hundreds of thousands of operations, the effort is practically nil.

At any time of any day, we can access the Programming of the Cash Flow, select a bank account and view or Modify the schedule of pending collections, which added to the available balance of the bank account, immediately calculates the availability of cash. Next, LOVIS EOS shows the corresponding pending payments and allows us to modify the dates and scheduled payment amounts for each case, obtaining in a totally dynamic way a feasible payment program ready to be processed.

Once we have a cash flow schedule, we can go to the processes of automatic generation of income and expenses that are responsible for creating bank transactions for the programmed amounts, partially or totally settle the accounts as appropriate and calculate the differences will change; all in a few milliseconds per transaction.

Subsequently, the Treasury of the company may generate the electronic files to upload them to the electronic banking system or, issue the corresponding checks and reconcile the operations of each of the bank accounts in a very simple way.

That is all.

At the end of the day, these transactions will be automatically counted, making the effects to banks, customers, suppliers, exchange differences and VAT and other taxes for cash flow, fully automatically and effortlessly by people.

Now you and your team of collaborators will be able to focus their energy and dedication to identify opportunities to improve the financial performance of the organisation, they will be much more satisfied with their work and their results will increasingly strengthen your company.