CoValence ERP System Challenge: Discrete vs. Process Manufacturing

From the CoValence Laboratories Manufacturing Department

Less than two years ago CoValence implemented a new ERP system that converted a discrete manufacturing database into a system designed specifically for the process manufacturer.  A discrete ERP system is designed to assemble “parts” to create a unit of 1 each.  However, we essentially sell formulas, which are a mixed relationship of ingredients that are brought together with a process.  We then fill our formulations into multiple types of finished goods.   Because the old system wasn’t able to fluidly work with our formulas and bill of materials, many side databases in applications such as Word and Excel had to be maintained in order for us to function in our day to day operations.  While the implementation of the new software was painful and at times appeared to be creating more work than it was saving, we can now “discretely” define the improvements to our company’s operating procedures.

The structure of our old system was inflexible and unforgiving, while the new system gives CoValence more control to comfortably define our manufacturing processes accurately.  We have perfected our weights to gallons, so now when a filling batch is created, we know exactly how much bulk product is needed for that Sales Order to be made.  It saves on time calculating each item that needs to be filled which is also more accurate than our employees doing it on a calculator and making a mistake.  Also, the new system shows exactly what ingredients or parts we are running low or critical on, whereas the old system didn’t show us this information at all. 

For the Marketing Department, immediate benefits were not straightforwardly seen, as the out-of-the-box software was tailored to the manufacturing side.  One of our most intensive projects when we initially went live was the INCI Customization created specifically for CoValence.  Historically, when a product was approved for production, the Marketing Department had to create INCI listings manually, which took about 30-40 minutes to create and at 5-20 listings a week, this was an average of 30 hours collectively for this department.  The INCI reports are a favorite of the Account Executives, because it saves so much time.  Prior to this they had to manually create our INCI listings using an Excel Spreadsheet to look up the ingredient and the corresponding INCI name and other information.  Now when a formula is approved, they can just run a report.

Our Shipping Department’s daily processes have also seen improvement with another adaptation created just for them, the Back Order Customization.  Our Shipping Clerks just run a report and the day’s backorders are printed which are then handed back to the Manufacturing Department.  Prior to this they had to look at the day’s shipping records manually, and reprint each order one by one.  Maintaining orders is a bit more intensive but from an inventory standpoint it is much clearer what is shipping, so mistakes are down to a minimum.

CoValence as a company is ingrained with a work culture that promotes it’s employees to always strive to improve our processes and overcome any limitations presented by our day to day operations – the ERP implementation and continued exploration of the potentials within our new software is an example of this dedication to delivering the best products and services possible.

Categories: CoValence Specific

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