The High Cost of Falling for Phishing

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Any employee can fall for a phishing scam. When the employee who falls for the scam is authorized to access and transfer large sums of money, an honest mistake can have significant costs.

$400,000 Sent to a Phisher

That’s what happened to Barbara Corcoran, of “Shark Tank” fame. A phisher changed one character in an email address and reached out to Corcoran’s bookkeeper. The email requested nearly $400,000 to be sent to a German company.

Of course, the bookkeeper didn’t just hand over the money. She replied back to who she thought was Corcoran’s executive assistant, and there was a legitimate-sounding reason for sending money to what appeared to be a legitimate business. The money got sent out, and it was only a later email to the executive assistant—not sent by hitting “reply” to the phishing message—that discovered the scam.

Business Email Compromise

The FBI calls these targeted phishing schemes business email compromise (BEC), and they’re a major risk to businesses. Once the money is wired, it is extremely difficult to get it back.

The scam Corcoran’s assistant fell for required some knowledge of how her business operated, in order to have a reasonable response when the bookkeeper questioned the request for the funds, but hackers don’t need to be sophisticated to implement the scam. Criminals can simply purchase templates that allow them to send these messages or break into an email account using passwords stolen in an earlier breach; if they’re not sure what they need to do, they can buy a phishing tutorial to learn. The overall costs of BEC in 2019 were close to 1.8 billion dollars, according to the FBI.

Defending the Business Against BEC

There are multiple types of phishing attacks, so there are multiple defenses needed, too.

Not all the attacks are as targeted as the one that hit Corcoran. Some attacks send generic messages to thousands of targets. Email filters can help block the messages from reaching employees, and training can help employees learn to report them rather than responding to them.

The more targeted attacks need to be handled through business procedures as well as technological fixes. When there are unexpected requests for large sums of money, businesses can require confirmation through a phone call in addition to an email paper trail.

Learn more about protecting your business against phishing emails.

To make sure you have effective phishing protections in place, contact CCS Technology Group. Our IT security services include employee training as well as the latest in technology to keep your business secure from phishing and other IT security threats.

Compare the Top 14 Cloud ERP Solutions

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If you’re considering making the move to cloud Enterprise Resource Planning (ERP) software, you will find IDC research useful in your vendor selection process. Last year, the technology analyst firm published a MarketScape report: “Worldwide SaaS and Cloud-Enabled Operational ERP Applications 2019 Vendor Assessment.” The report compares the 14 top cloud ERP providers, from IDC’s point of view.

IDC takes the perspective that cloud ERP is essential for digital transformation (DX). As they put it, “Smart DX businesses have turned their focus to SaaS and cloud-enabled software because they need flexible and agile financial applications that are relatively easy to implement, configure, and update.” The firm sees growing demand for cloud ERP for this reason. In particular, IDC felt that cloud ERP was necessary for accessing and analyzing large amounts of data in near real time. This is best accomplished in the cloud.

The report includes assessments of the major cloud ERP platforms: SAP, Oracle, IFS, Oracle-NetSuite, Microsoft (Dynamics), Infor, Plex Systems, Priority, Acumatica, Epicor, Ramco Systems, Syspro and Sage. As with all MarketScapes, IDC divides the vendors into “Leaders,” “Major Players,” “Contenders” and “Participants.” The placement is based on IDC’s evaluation of each vendor’s capabilities and strategies.

Acumatica ranked as a “Major Player” in the report. As an Acumatica partner, we found this to be an exciting and well-deserved development. Acumatica has been innovating and growing since its founding in 2008.

IDC praised Acumatica for being a “modern platform.” They liked Acumatica’s open (RESTful) APIs along with the platforms ability to automate business workflows. They characterized the Acumatica mobile application as “highly functional.” For IDC, the full integration of Customer Resource Management (CRM) into the platform helped position Acumatica as a major player. IDC also highlighted the value of Acumatica’s user interface (UI), dashboards and reporting.

The report lauded Acumatica’s multi-entity transaction capabilities. They said, “Acumatica has enhanced its offering significantly and is now able to support customers with complex global corporate structures, allowing the books to be closed independent of other subsidiaries or business units.”

Acumatica stood out for IDC for what they call Third Platform and innovation investment. The analyst firm expressed the view that Acumatica’s continued investment in Third Platform and relevant innovation accelerators would help with the company’s future growth. These included investments in data-driven functions like machine learning, natural language processing (NLP), business intelligence (BI) and data analytics.

The Third Platform is a concept developed by IDC that refers to blending of traditional IT with mobile, social, cloud and Big data. Third Platform innovators like Acumatica focus on the consumer and end user, rather than on the enterprise alone.

The IDC report is valuable because it allows you to compare the strengths and challenge areas for so many leading cloud ERP providers. The analysis is fair and even-handed. We recommend Acumatica for many of our clients, but there are certainly many good choices on the market today. At the same time, it’s worth paying attention to areas where certain vendors are struggling. Not all cloud ERP solutions are cloud-native, for example, as Acumatica is.

Get the full report here. To learn more about Acumatica, contact us to arrange a demo.

Additional ERP Resources

Why Growing Companies Need ERP Software

Position Your Business for Growth with Cloud ERP

How ERP Software Can Save Your Business Money

Multiple Clouds Make Mastering Cloud Management Even Harder

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If you’ve got cloud—and by now, everyone has got cloud—chances are, you’ve got multicloud. This can result from strategic decisions to obtain specific services from best-in-class providers or the result of not having a cloud strategy and allowing individual departments to make their own cloud picks. Whether multicloud is a deliberate decision or an accident, once you’ve got multiple clouds, you’ve also got additional cloud management challenges.

Multicloud Management Challenges

The multicloud management challenges include:

  • Cost. It’s difficult to get an overall picture of cloud spending when it’s split up over multiple providers with different billing cycles. It’s also difficult to determine if the resources you’re paying for are being utilized efficiently. Some cloud management tools can load all your usage and billing data to provide a comprehensive picture of total costs and utilization, while also allowing you to drill down and see the details of departmental spending.
  • Expertise. It takes time to become familiar with any new technology. Working with multiple cloud providers means your team will have to learn multiple ways of working in the cloud.
  • Migration. Getting to cloud can be difficult and creating migration plans is time consuming. With multiple clouds, you may need to develop different migration strategies for different platforms.
  • Security. Multiple clouds mean more potential security risks. There are more logs to monitor for suspicious activity. It’s hard to ensure policies are applied consistently across different cloud providers with different controls. Defining role-based access controls and leveraging single sign-on also become more challenging.
  • Performance. Because workloads are scattered across multiple clouds, it’s more difficult to monitor and ensure adequate performance. Using multiple clouds can also place more load on your network, especially if the clouds aren’t running isolated services but share data through APIs or other methods.
  • Visibility. Visibility is a problem to some extent even when you have just a single cloud. Visibility into your infrastructure and system status may be limited by the cloud provider and by your inability to access the underlying hardware. Multiple clouds often make visibility even harder because dashboards display only local data; it’s probably necessary to use a third-party tool to achieve consolidated view. In addition, different flavors of cloud—IaaS, PaaS, SaaS—require different levels of monitoring.
  • Automation. Automation and orchestration are key to efficient IT operations; it ensures necessary processes run on time and eliminates manual errors. Again, because multiple clouds have different ways of doing things, it can be complicated to develop a single automation solution across all providers.

Whether you have one cloud or many clouds, cloud solutions from CCS Technology Group ensure they’re managed effectively so your business experiences the benefits of cloud. Contact us to talk about your cloud challenges and how CCS Technology Group can help you solve them.

7 Critical Factors to Consider When Developing Your Backup Strategy

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Backing up without a strategy, or with an ineffective strategy, is likely to generate backups that don’t protect your business. After all, the point of backups isn’t to create the backup; it’s to create a copy of data that your business can restore from when the primary copy is damaged or unavailable. Creating a backup strategy to meet that goal requires identifying key backup concerns and selecting appropriate backup technologies.

Critical Factors in Developing Backup Strategies

When you start thinking about your backup strategy, keep these considerations in mind. You’ll need to balance these factors to come up with a strategy that truly protects your business.

  1. Cost. Like everything else, backups cost money. You may have to buy hardware and software, pay for a maintenance agreement, and train your staff.
  2. Backup location. Today, many default their backups to the cloud. However, you should still consider potentially keeping a copy of your data in another location as well. Cloud outages are rare but do happen.
  3. Backup method. You can choose from different kinds of backups. Each backup method requires a different amount of storage, impacting costs, and a different amount of time, impacting both the length of the backup procedure and the length of the recovery procedure.
  4. Backup (and recovery) flexibility. When creating backups, you generally want to backup everything, but that’s not true for recovery. Recovery needs to be able to scale from restoring a single file to restoring an entire server.
  5. Backup schedule. Your backups should be automated and run on a schedule, not rely on someone remembering to execute them manually. They should be scheduled to run frequently enough that you’ll capture data that changes often as well as data that changes rarely. They should be scheduled around production workflow needs. Your recovery point objective and recovery time objective come into play here; note those targets shouldn’t be global but should be tailored to the needs of each system. Your backup schedule may be unique to each system as well
  6. Scalable. You can expect your data to grow and your backup needs to grow along with it. Your backup process should be able to handle expected volumes of new data. You should have a process that ensures new servers, applications, and data stores are added to your backups.
  7. Backup security. Backups need to be accessible when needed, but they shouldn’t be accessible by just anyone. Making sure backups are safe from tampering is vital to protect your business.

Backups are part of a comprehensive business continuity solution. Contact CCS Technology Group to learn more about how these critical factors can shape your backup process.

Acumatica 2020 R1 New Features

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Acumatica 2020 R1 was introduced in Las Vegas on January 28, 2020. A few changes are being made to the Cloud ERP system, with several additions that will increase functionality. Acumatica is clearly committed to advancing technology and expanding the user experience. This latest semi-annual release of the software was discussed in keynotes and breakout sessions at the Acumatica Summit 2020. Some of the most important features of the new version were revealed, including:

Integration of Omnichannel Commerce with BigCommerce

BigCommerce integration provides omnichannel sales support, so organizations can integrate sales, delivery and customer service. This added functionality expands how a company can interact with customers and supports B2B and B2C models.

Integration with Adobe Document Cloud

Acumatica now works with Adobe Sign, so businesses can capitalize on cloud-based e-signatures. Documents can be sent, signed and tracked using a browser or mobile device. This new feature enables more streamlined document management and contract management.

Usability Improvements

Users can now create expense reports with a mobile camera. Additional mobile functionality includes recording travel and break time on service calls and attaching captured images to data records. A quick add button allows faster access to data entry screens. Dashboard caching and pivot table percentage calculations, along with distinct counts, have been added to simplify reporting,

Updated Modules

In addition to BigCommerce integration, Acumatica Payroll has been improved to minimize overhead expenses. You can run in-house payroll processes from the software to speed paycheck delivery. Added features include salaried and hourly workers, integrated taxes and tax forms, deductions and benefits, flexible payroll periods and timecard integration with overtime rules.

Updated Functions in a Single Business-Wide Software Suite

All industry editions of Acumatica have been enhanced with new features. Acumatica 2020 R1 expands sales and warehouse operations for fast generation, tracking and management of inventory-related items. Warehouse Management now supports rapid fulfillment with wave and batch picking. Acumatica’s new international depreciation enhancements have been added to support companies focused on worldwide expansion.

New project management tools allow users to manage more projects. For example, project balance reconciliation has been simplified, while you can track project progress with improved daily field reports. Weather data (available via the ClimaCell service), photo logs and other data can now be added to reports. You can now also track payments and retainage by lines in accounts receivable.

Acumatica 2020 R1 also lets users track production and costs with native shop floor data collection, which can improve manufacturing operations. The ERP now supports advanced planning with capable-to-promise and what-if scenarios as well. Also highlighted during the release event were Open APIs for integrating artificial intelligence and machine learning technologies to drive automation and efficiency.

About Acumatica Cloud ERP

Acumatica Cloud ERP is a complete business management solution that supports manufacturing, distribution, retail/e-commerce, manufacturing and construction industries. It provides a complete audit trail of changes and full CRM functionality to improve customer support.

We have worked with many companies in the implementation of Acumatica. The software scales with your business as it grows. To learn more or schedule a free demo, contact us.

Additional Acumatica Resources

Why Acumatica Outpaced NetSuite on the Most Recent G2 Survey

Acumatica Financial Management

Optimize Your Quote-to-Cash Process and Improve Customer Service

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Business isn’t that complicated. The customer wants his or her order. You want your money. The fewer complications the better. The sooner the customer gets the order, and the sooner you get the cash, the happier everyone is. Alas, things are not always so simple. More than few things can disrupt the quote-to-cash process. Software innovations, like Acumatica Cloud ERP for distribution, are making it easier to improve cash flow and customer experience, however.

The Quote-to-Cash Process

We all understand the quote-to-cash process intuitively, but it’s worth taking a closer look to see how many people, workflows and software applications it can take to execute. The process starts with a moment of customer contact where a salesperson gets information about what the customer needs. This could occur by phone, email or online quote request form. The salesperson then prepares a price quote, often using a productivity tool like Microsoft Word or a sales order processing application.

If the customer accepts the quote, the salesperson may then have to enter the resulting sales order, manually, into an order management system. From there, the warehouse or manufacturing operation has to fulfill the order. This may involve yet more manual rekeying of order data into a distribution management and logistics system. Once delivered, the order can be invoiced, which usually requires an invoicing system that may or may not be part of the company’s accounting software package. When payment comes from the customer, the cash deposit posts in the general ledger software.

Even when these separate processes and software packages are connected, the overall quote-to-cash process can still be cumbersome. A lot of people/hours get spent keeping on top of orders and their fulfilment through the final receipt of cash. There are also many opportunities for errors and confusing situations that can negatively affect customer service. For example, if one item out of ten quoted is out of stock, that will change the quote amount. This, in turn, may generate back-and-forth communications with the customer, adjustments to invoices, delays in order processing and so forth.

Improving the Quote-to-Cash Process

Modern automated systems like Acumatica Cloud ERP provide you with features, integrations and process orchestrations that streamline the quote-to-cash process. By connecting the various elements of the process and giving the different people involved a unified view of what’s going, the software helps improve cash flow while maintaining a good customer experience.

Now, with a single connected system, your people can take orders accurately, ship promptly and avoid billing errors. You get your cash faster. Reporting and data visualization tools give you insights into potential issues with slow payers, delayed deliveries and inventory control challenges.

Order automation enables order-taking over the phone, via websites and point-of-sale (POS) devices. The cloud ERP is able to display item availability and apply discounts automatically. It can be configured to show a variety of delivery options. The order then gets processed without any rekeying of information. The automation and orchestration continue through invoicing and accounting processes that complete the “to cash” step of the process.

We have worked with many companies on the implementation of cloud ERP to improve order-to-cash and the broader operations of a distribution business. Contact us to learn more or see a demo of Acumatica.

Additional Distribution Resources

Top Reasons for Installing a Warehouse Management System (WMS)

Recommendations for Selecting a Distribution ERP Solution

Looking at 2020 Distribution Industry Trends with ERP in Mind

Why Every Finance Executive Needs Cloud ERP

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It would be an understatement to say that finance executives have a lot of responsibilities. If you’re in charge of overseeing your company’s accounting operations, you need an ERP platform that supports accurate reporting, budgeting, auditing and tax compliance along with financial forecasting and bank account management. Tracking finances across an organization requires strong analytical capabilities, which are supported by the latest cloud ERPs like Acumatica.

Acumatica Financial Management is a full-featured accounting suite that addresses the most complex requirements for companies of all sizes. Plus, it integrates with Project Accounting, Customer Resource Management (CRM), Manufacturing Management, and other product suites offered by Acumatica. Here are some other compelling reasons why finance executives need cloud ERP to run their company’s accounting and finance operations:

More Informed Decision Making

Finance and accounting processes/systems can be implemented across an organization, increasing the insights and analytical capabilities available to you. Complete reports and dashboards provide real-time views of performance and important trends. Data can be analyzed from a centralized location, improving business intelligence. At the same time, cloud ERP lets you monitor key performance indicators such as revenue goals, profitability goals, equity and throughput. You can run recurring reports such as accounts payables aging and days-cash as well as customized reports that feature data-intensive analysis and data visualization.

Accurate Financial Records

You can use the integrated CRM, accounting and operations modules of Acumatica to track all aspects of your business as they relate to finance and accounting. In addition to ensuring regulatory and audit compliance, Acumatica supports accounts payable/receivable, payroll management, project cost tracking and tax management. It even supports multi-currency transactions and can be implemented by multi- and international companies. If multiple companies or entities in your organization are using Acumatica, each one can have their own books. Yet, each entity’s accounting systems can be quickly integrated to provide a full overview of the business.

Streamlined Operations

A centralized financial management solution lets you make well-informed decisions with fewer errors, while being able to close the books faster during each reporting period. Changes are made in real time, regardless of where—and on what device—they are made. All shared information is up to date. This provides a complete audit trail and full visibility into business operations.

Exceptional Functionality

As a finance executive, you can use Acumatica’s General Ledger to view charts of accounts and manage allocations, assets and liabilities. Accounts Receivable lets you generate invoices, collect and apply payments and track commissions. With Accounts Payable, you can manage cash flow, pay suppliers faster and improve supplier relationships.

Acumatica also automates deferred revenue calculations and lets you apply a subscription model for customers that automates recurring billing, payments and collections. Fixed asset management lets you add fixed assets from AP purchases, import a file or add items individually. In addition, Acumatica supports pre-defined and custom depreciation schedules to let you manage a wide range of assets.

The Solution to Streamlined Financial Management

Acumatica is suited for anyone in charge of managing a company’s finances. Whether you’re a Treasurer, Bookkeeper, VP of Finance or a Chief Financial Officer, Acumatica Financial Management provides complete visibility and control across your entire business.

Contact us to learn more or see a demo of Acumatica for financial managers.

The Metrics That Mean You Need Managed Services

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The time to consider managed services is when you realize you’re not getting the results you need by managing your IT yourself. How do you determine that? Assess yourself with these key metrics to determine whether managed services can help your business.

Infrastructure and Application Metrics

These metrics reflect the results you’re getting from your current infrastructure and your approach to support.

  • Are you getting the network and application performance you need? Assess performance details and performance variability, along with any user complaints about performance.
  • Are your resources under- or over-utilized, or are they appropriately sized to meet your demand?
  • Are you achieving acceptable uptime? Excessive downtime creates significant costs for your business.
  • Are your batch jobs running within their specified SLA? First make sure you’ve determined an SLA for every batch job—how long you expect it to take to run, and then determine how many batch jobs are actually completing within the required period.
  • Do you have frequent production problems? If you’re having daily, severe problems, that’s a good sign that your current approach to systems management is not effective.
  • Is your change process under control or do you need frequent, unscheduled fixes? Not only are unscheduled fixes disruptive, they indicate that routine maintenance isn’t being performed effectively.

Project Metrics

The infrastructure and application metrics reference deployed infrastructure. New infrastructure and changes to existing infrastructure happen in the context of projects. You should assess how effectively your IT is performing those projects.

  • Are projects being completed on time and within budget? Is the IT team overloaded with routine maintenance and upgrades, or are they able to handle the projects that provide business value?
  • Are the end users affected by the projects satisfied when the new technology is in place?
  • Are projects being completed with defects or with second phases necessary to complete items that couldn’t be done within the original schedule and budget? Additional phases are fine if they were part of the original plan, but if your team continually has to shrink scope to complete projects, you should explore other approaches to planning and delivering the work.

Human Resources Metrics

The IT work you can complete depends on how many IT resources you have, how skilled they are, and how long they stay with your business.

  • Do you have enough IT staff to complete the work you need done?
  • Does your IT staff have the skills needed to support the technology your business requires?
  • Do you have excessive turnover of your IT team?

User Metrics

IT is ultimately in service of the business employees and customers who use your IT resources.

  • Are the users happy with the level of technology they use or do you hear many complaints?
  • Do users receive help with their support problems rapidly or are there many delays?

To learn more about managed services and how managed services can help you improve these metrics, contact CCS Technology Group.

Additional Managed Services Resources

5 Reasons Managed Services Are Good For Your Business

Whatever Your IT Problem, There’s a Managed Services Solution

6 Big Benefits from Using Managed Services

Don’t Let Ransomware Destroy the Backups You Need to Recover from Ransomware

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Backups are the primary means a business can use to recover from a ransomware attack. It’s no wonder, then, that many forms of ransomware now attempt to destroy any backup files they encounter. Protecting your backups against ransomware is an important part of your defensive strategy.

The Ransomware Threat Against Backups

Ransomware is a form of malware that encrypts system and data files with an unknown encryption key. This encryption makes the files unreadable by their owner. The only way to recover the data is to pay a ransom and receive the encryption key or restore the files from an unencrypted backup.

Some malware implementations attempt to recognize backups by file extensions and will delete those files. On Windows systems, ransomware can detect and delete shadow copies that support file recovery. Ransomware will also attempt to spread through the network, accessing mounted file systems containing backup, and encrypt those files as well. Ransomware may even be able to reach and corrupt backup files stored in the cloud.

Ways to Protect Backups Against Ransomware

The methods to protect backups against ransomware rely on making multiple copies of backups and taking steps to make them inaccessible to any ransomware.

Make Multiple Backups

It’s a good idea to use specialized third-party backup software rather than (or in addition to) built-in backup solutions. Ransomware can’t know how to target every vendor’s backup files.

Keep multiple versions of your backups. There are good reasons for this that have nothing to do with ransomware, but if your latest backup is encrypted, you can restore an older version of your files from before the ransomware attack.

Keep Backups Inaccessible to Ransomware

There are several ways to make backups inaccessible to ransomware:

  • Store at least one copy of your backups in an offsite location.
  • Dismount backup devices after the backup process is complete.
  • Make backup files read-only, or store on write-once media.
  • Use access controls such as Windows Controlled Folder Access to prevent unauthorized processes from accessing backup files.

Note that backing up to cloud does not make those backups inaccessible to ransomware, unless the only access to the backup is via an API rather than mounting the cloud as a drive.

Test Your Backups

It’s important to test your backup files periodically to verify that the data is complete and that you know how to access it and use it to restore your data. You should conduct a full disaster recovery test at least annually and continuously monitor your backup process and address any alerts or failures.

CCS Technology Group helps businesses implement comprehensive business continuity solutions to protect against ransomware and other causes of IT outages. Contact us to learn more about implementing a backup solution that protects your backups as well as your data.

Additional Ransomware Resources

Take These Steps to Avoid Expensive Ransomware Recovery Costs

Don’t Lose Your Files to Ransomware

Ransomware 101: Keeping Your Organization Safe

4 Strategies for Smarter Inventory Control

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Inventory control affects a range of business outcomes, including profitability, operational efficiency, product quality and customer satisfaction. Despite its importance, inventory control is often neglected, perhaps due to the traditional difficulty of doing it well. With the advent of cloud-based Enterprise Resource Planning (ERP) solutions with dedicated inventory management features, this is starting to change.

Acumatica recently published a paper on the topic, highlighting four strategies for smarter inventory control: 1) Maintain accurate records; 2) Proactively plan to avoid shortages; 3) Focus on improvement; and 4) Reduce lead times and lot sizes by reducing fixed ordering costs. This article offers an overview of these strategies.

Understanding the Financial Impact of Inventory Control

Before getting into smarter inventory controls, it’s worth taking a moment to review three prominent cost impacts of inventory management.

  • Cash flow and the cost of capital—Inventory tends to use up cash, unless it’s being sold before the vendor’s bill becomes due. Most companies do not have such a fast cash cycle. Instead, inventory is ordered and paid for weeks or even months before it gets sold or incorporated into other products. In addition to diverting cash from operations or investment, inventory carrying costs show up as interest expense on the income statement.
  • Administrative costs of inventory management—Placing an order for products to be held in inventory carries an administrative cost. Someone, or some group of people, must do the work of placing the order, arranging for the purchase order, reconciling vendor invoices with purchase orders, authorizing payments to vendors and so forth. All of this costs money.
  • Storage and transportation costs—Inventory storage and logistics come at a cost, too. The warehouse facility has a cost to operate. Freight and logistics suppliers cost money as well.

Quality is an indirect, often intangible issue associated with inventory management. If a vendor ships defective inventory, that creates an administrative burden for returns and refunds. If customers receive defective merchandise, that magnifies the admin problem and adds customer relationship problems to the mix. Generally, the longer inventory sits on the shelf, the harder it becomes to locate the defective goods.

Strategy #1 – Maintain Accurate Records

Record-keeping is essential to effective inventory control. This is a well-known fact, but it’s still surprising how challenging it can be to implement good inventory records at many companies. The culprit is often systemic in nature, with manual processes and re-keying of inventory data from one system into another, e.g. from a warehouse management solution into ERP. Alternatively, record-keeping falls apart due to physical/digital handoffs. For example, if the warehouse receives a shipment of inventory and then places it on multiple shelves, the storage locations may get lost, or at least not tracked, by any central system. Accidental, unnecessary reorders or unawareness of defective goods may result.

Strategy #2 – Proactive Planning

Proactively planning for replenishment is a wise practice in inventory control. But, when is the right time to replenish? This is a simple but highly challenging question to answer. At stake are issues like the business risks of running out of an item, which can affect production and customer satisfaction. Per-unit costs, which may go up in smaller orders, can be a factor, as well as shipping lead times, shipping costs and so forth. Learn more about measuring warehouse productivity.

Material Requirements Planning (MRP) software offers a solution that enables proactive planning. It calculates replenishment quantities and optimal order timing—in alignment with the master production schedule. Distributors can use comparable Distribution Requirement Planning (DRP) tools. Both types of software work from a sales forecast and work backward in time through the distribution network (DRP) and Bill of Materials (BOM).

Strategy #3 – Focus on Improvement

Innovations in inventory management software also make possible an ongoing focus on improvement. Businesses that are successful at inventory control seldom sit still. They are always looking for ways to get better at the process. Plus, the dynamics of the business are always in flux, so the inventory control approach that worked last month may longer be optimal. Software for inventory control enables users to improve their inventory accuracy. Users can also get better at forecasting replenishment quantities and reducing order lead times.

Strategy #4 – Reduce Lead Times and Lot Sizes

The ideal inventory order lead time is zero. The instant the item is needed, it shows up on the shop floor or in the distribution warehouse. Of course, zero lead time doesn’t happen, though software can get a company pretty close. “Just in time” or same-day delivery of needed inventory are now common. The challenge is to predict variability. One day, a company might need 10 units of a particular SKU. The next day, it will need 12. If it orders 12 every day, it will start to accumulate a backlog, with carrying costs and all the other problems that come with inventory.

Control Your Inventory With Cloud ERP Built for Distribution

As these four strategies suggest, software and data analytics capabilities are at the heart effective inventory control. Making fast, smart decisions about inventory—and leveraging technology to automate inventory management processes across multiple systems, is only possible with the right software tools. Acumatica Distribution Edition embodies these capabilities. We have extensive experience working with companies on the implementation of Acumatica for inventory control. To discuss how this technology could benefit your business, or to see a demonstration of Acumatica’s inventory control features, please reach out to arrange a meeting.