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 “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.