Two-Factor Authentication Has Vulnerabilities as Well as Benefits

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Achieving information security is a never-ending challenge as bad actors find ways to get around every new protective layer. Like all other information security technologies, two-factor authentication can be bested by a determined intruder.

Two-Factor Authentication Means Users Need More Than a Password

The idea behind two-factor authentication (2FA) is that passwords by themselves are relatively weak security. Instead of users needing just a password, they need to prove their identity in two different ways. These ways include:

  • Something you know, like a password.
  • Something you have, like a cellphone that can receive a single-use token.
  • Something you are, like your fingerprints or retinal scan.

It’s important to note that a password plus security questions is not an implementation of 2FA; the security questions and the password are both “something you know.” In effect, the security questions are simply secondary passwords.

Two-Factor Authentication Is Vulnerable to Attacks

Although 2FA adds an extra layer to security, that doesn’t make it invulnerable. There are several approaches a hacker can use to get past it:

  • SIM hacking. In this approach, the bad actor effectively takes over the phone number of the mobile device used as part of the 2FA. This enables them to receive the single-use tokens and login.
  • Phishing. Phishing can direct users to malicious sites where single-use passwords are captured. A hacker watching the site in real-time can use the token to access the targeted site before the token expires.

Making Two-Factor Authentication Effective

These vulnerabilities don’t mean that you shouldn’t use 2FA to increase the security of your systems, but it does mean you need to be smart about how you implement it.

In particular, there’s an implementation of 2FA that is not vulnerable to SIM hacking or phishing. Instead of a user providing a token that was sent to them, this implementation requires a hardware key to be plugged into the user’s device. Because of the extra cost and potential inconvenience, this may be most appropriate when you have highly sensitive data to protect. It’s also important to note that at least one version of a hardware key was itself found to be improperly implemented and vulnerable to attacks.

Two-factor authentication should also be integrated into an effective overall information security strategy. Employees need to be trained to detect and avoid phishing emails. Your infrastructure should include firewalls, blacklists, filters, and other controls that help protect employees and their credentials from dangerous sites.

CCS Technology Group provides comprehensive information security services that protect your valuable data. Contact us to learn how to use 2FA as part of an effective information security solution.

Additional Information Security Resources

Everyone Is a Participant in Information Security

Discover the Dangers of the Dark Web

Different Kinds of Malware Need Different Kinds of Defenses

Key Questions to Consider When Migrating Data to the Cloud

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There’s a lot to think through when planning your cloud migration, including many aspects that are easy to overlook. Data is too obvious to be missed, and because it’s so important, you should expect to spend a significant amount of time thinking about the best migration strategy.

There are a number of questions you should ask yourself before migrating any data set to the cloud:

Do we need this data set?

Much data in any business is duplicate data that’s no longer needed, such as copies of data created for development projects that are complete. You may have multiple datasets housing customer information that could be combined. Some data may be old and rarely needed; consider migrating it to an archival storage tier instead of expensive, fast storage.

Do we need this database?

Distinct from the data itself is the database it’s housed in. Some data is stored in conventional SQL databases and you may want to migrate directly to that vendor’s cloud version. Other data is stored in homegrown systems and cloud migration may present an opportunity to transition to a supported platform. For some data, this might be the time to try out a NoSQL database.

Do we need this data model?

You may need the data and the database, but you may not need it in its current format. The data model may no longer serve your purposes, or the data may be incomplete, inconsistent, or incorrect. Depending on how well it fits your needs and the time you have available before migrating, you may want to invest in a database clean-up or redesign project.

How big is the data?

The size of your data determines how practical various data transfer methods are. For truly large databases, copying the data to another drive and physically shipping the device may be the only way to complete the transfer within reasonable time.

How do we validate the migration?

Once you’ve transferred the data, you’ll need to verify that it transferred completely and without any corruption. In addition, you may need a way to sync the migrated data with any changes that were made after the transfer process started. You’ll need to validate that process as well.

How do we protect the data?

Cloud increases the potential for third parties to access your data, whether by the cloud provider’s employees, hackers who access the malware, or accidental exposure of data to other users of the shared resources. All data should be protected both at rest and in transit to reduce the risks. Investigate how to implement this and whether you or the cloud provider will have control of the encryption keys. Learn about ways to keep your cloud secure.

Get help getting your data to cloud with cloud services from CCS Technology Group. Contact us to learn how to think through the important data migration questions and develop a strategy that succeeds.

Additional Cloud Resources

Calculating the ROI of Moving to the Cloud

Choose the Right Cloud Model to Meet Your Business Needs

Choose the Right Approach for Moving Applications to the Cloud

Is the Dark Web All Bad?

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Dark Web: (noun) – Part of the world wide web that is only accessible by utilizing special software, allowing users and websites to remain anonymous or untraceable. It exists on an encrypted network that uses masked IP addresses to maintain anonymity for users and site owners. This way, people who use the Dark Web for illegal purposes can’t be traced.

As you can see by the above definitions, the Dark Web can be a shady place where illegal transactions take place. Things like drugs, guns, counterfeit money, and credit card numbers can all be found, bought, and sold.

Chances are that if your business has been hacked, some or all of the stolen information is for sale on the Dark Web. This is why small to medium business owners need to make sure their security software is regularly updated against new and stronger threats.

But is the Dark Web only used for bad things? Surprisingly—no. It is estimated that only about a third of the people who visit the Dark Web do so for illegal activities.

Before we go any further, I’d like to bring up a little more info on the Dark Web and some of its misconceptions. Did you know that the internet you use every day is actually just the Surface Web? Also called the Common Web, Visible Web, or the Indexed Web, it is just the portion of the web that the general public has access to. We assume that it is the majority of the internet because we’ve labeled it the world wide web, right? Well, the Surface Web is only about one-third of the entire internet. Everything we have access to is, in reality, just the tip of the iceberg.

Underneath the Surface Web is the Deep Web. Also called the Invisible Web or Hidden Web. It is a portion of the world wide web whose contents are not indexed by standard search engines. 99% of the information on the Deep Web cannot be found through search engines like Google or Bing.

But are there positive aspects to the Deep Web and Dark Web?

The U.S. government uses both the Deep and Dark Webs to keep open channels to countries that are ruled by oppressive dictators, in case citizens of those countries want to send out news stories or ask for help. Media outlets, like the New York Times, host portals that allow people and whistle-blowers to send in news tips, anonymously.

That anonymity helps give people who are in bad situations or have no one in their lives to talk to, a means of expression and channels of help. There are groups for survivors of abuse that allow victims to name their abusers and also to get support from other survivors. There are groups for people with every type of addiction, anything from food, drugs, to gambling. Some countries punish their citizens arbitrarily, for such reasons as sexuality or religion. The Dark Web offers opportunities for people to create communities where they can share stories and tips or plan to meet in person.

You can even join a chess club and play with people from all over the world. There are chat rooms, dating sites, and gaming forums where you can talk about anything, anytime, without the fear of being monitored. People can freely share their feelings, express their challenges and even find help from these groups.

Freedom of expression is alive and well in the crevices of the Dark Web. If you’re an artist, you can share your passion with people who truly enjoy creativity and self-expression. The same goes for writers, poets, and musicians. There’s even a site where origami lovers post their beautifully folded ornate creations, and some of them are so intricate it’s hard to believe they started as a flat piece of paper.

You’re probably thinking, “With all the negative and scary stuff on the Dark Web, I’ll never even try to access it.” You want to stay safe and keep away from it, right? Well, sorry to tell you, but some of your daily excursions on the internet already access part of the Deep Web, and even the Dark Web, because of the anonymity they provide.

For example, your company’s intranet is on the Deep Web so search engines cannot see it. There are sites you may have joined that exist behind pay-walls or require special registration. Many databases and webmail pages are also tucked away below the Surface Net, so your personal information is not exposed.

If you belong to a Facebook group—guess what? Yes, that group is on the Deep Web. Otherwise, anyone can search for that page, read the posts, and request to join. If you use online banking, that information is also on the Deep Web. Sites that host medical information and legal documents are hidden there as well. As you can see, there is a need for the Deep and Dark Webs because of the security they offer.

If you choose to go to the dark side of the web, be careful. You just might find something beautiful, or you could accidentally stumble upon the worst aspects of human nature. Like everything else the world has to offer; when you’re exploring, be safe.

Get a Dark Web Scan to Identify Your Vulnerabilities

What you don’t know will hurt you. A Dark Web Scan can uncover if your data is for sale, and tell you if your personal or business data may be at risk.

Additional Dark Web Resources

Discover the Dangers of the Dark Web

What is the Dark Web and Why Should We Care?

Passwords – Outdated and Dangerous, But Necessary?

Passwords – Outdated and Dangerous, But Necessary?

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Here’s a quick test – what do these seemingly random alphanumerical groupings have in common?

  1. 123456
  2. password
  3. 123456789
  4. 12345678
  5. 12345
  6. 111111
  7. 1234567
  8. sunshine
  9. qwerty
  10. iloveyou

That is a list of the top ten passwords used in 2018. Recognize any of these? If you don’t, you’re not necessarily in the clear, but your chance of becoming compromised or hacked is far less than someone who uses one of these passwords. If you do recognize these, you’re certainly testing your luck.

These days, creating and remembering passwords has become increasingly more challenging. If we had only one device that required a password, we could probably manage it quite easily. But with every device we use, most programs we need to do our jobs, and sites that require you to change your password every few months, it is estimated that the average person must memorize up to 191 different passwords. No wonder we often choose to take shortcuts!

The problem is over 80% of hacks are due to compromised credentials, otherwise known as stolen username and password information that are often traded on the Dark Web. In fact, in one month alone in 2018, Microsoft blocked 1.3 million attempts to steal password data, which would have led to dangerous phishing attacks, and other hacking attempts.

These harrowing statistics are why you hear the recommendations:

  • Never use the same password twice (IT Managers report 73% of all passwords used are duplicated in multiple applications, opening up multiple avenues for attack)
  • Never write down your passwords
  • Never share your passwords with anyone else
  • Never use real words or known information about yourself in your passwords
  • Avoid commonly used passwords (50% of all attacks involved the top 25 most used passwords)

Pay attention to that last stat: 50% of all attacks involved the top 25 most used passwords. See what we meant when we said if you recognized anything on that list you’re testing your luck?

Following all these rules and regulations, you’ll end up with passwords that are about 16-characters long, impossible to memorize, and, unfortunately, are still completely hackable (much more difficult, of course, but where there is a will, there is a way). So, what do we do now?

Password Manager

The first shortcut is a password manager. You can store all your passwords in one place. This makes remembering all your passwords much easier, but there you’re not out of the woods yet. The password manager is also protected by a password. If you’re utilizing a software like this, make sure that this password is especially complex, so that hackers aren’t even tempted, especially in the case of a brute force attack. If possible, turn on multi-factor authentication, especially on your password manager.

Multi-factor authentication

Many sites utilize multi-factor authentication. This extra layer of protection connects to your phone, email, or other authentication source, rather than relying solely on a password. We recommend enabling multi-factor authentication wherever possible. The only caveat here is make sure your secondary authentication source is equally secured with a strong password. No sense in double protecting yourself with a wide-open source.

Random Password Generators

These sites come up with secure passwords for you, but are typically a random jumble of letters, number, and symbols that are darn near impossible to memorize. If you’ve got a strong memory, this might be a good starting point, but if you’re like most of us, this may be more challenging than it’s worth.

How to craft the best password

Use a “Password Phrase” in place of random letters, numbers and symbols. Create something that’s easy for you to remember, but has no meaning to anyone else. For example I<3Fh@ck3rs43v3r!. Breaking this down, you get:

  • I –                  I
  • <3 –               Love
  • F –                 fooling
  • h@ck3rs –   hackers
  • 43v3r –         forever

This would be easy for you to remember because you understand the phrase, but difficult for a hacker to decipher because it’s not made up of real words. There’s no time like the present to get started and change your easy-to-hack passwords to something safer, because it’s always better to be safe than sorry.

Work at creating passwords that will be difficult to hack. Make sure to change them regularly. Never write them down, (especially on a Post-it Note stuck to your computer!). But most of all, make passwords an important part of your life. Don’t consider them a nuisance or a thorn in your side. Make a game out of creating passwords. Challenge yourself to be more creative each time you create one. Beat the hackers at their own game by making your password too time intensive to try and crack, and you’ll reduce your chance of your information showing up on the Dark Web.

Worried about your information already being available due to past weak password use?

If someone breaks into your home, you can usually document what’s missing so the police can track it down. This isn’t as easy with data. A dark web scan can reveal what information may have been exposed to help you take actions to correct course. Register for a dark web scanand we’ll run a scan that reveals your vulnerabilities.

What Types of Software are Helpful for Growing and Large Businesses?

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The role of software in business has evolved from “what’s that?” to “nice to have” to “have to have” to today’s essential truth, which is that software is the heart of the businesses. It’s hard to imagine a business of any size or substance operating without multiple types of software running across the organization. The software industry has responded, offering a wide range of options for companies of different sizes. There are small business software packages, solutions for mid-sized companies and enterprise-scale applications.

If your business is growing, and we hope it is, what types of software are helpful as you grow? Having worked with many clients whose companies were in growth cycles, we have found the answer to this question is far from simple.

First, a growing company needs software in all of its operating areas. It needs Customer Resource Management (CRM) and sales management software in its sales and marketing departments. It needs HR software in HR. Accounting needs accounting software. Most businesses also typically need Enterprise Resource Planning (ERP), distribution management, field service management and warehouse management. It needs a relational database management system (RDBS) along with data visualization and reporting tools. These needs are in addition to desktop operating systems and productivity (e.g. Microsoft Windows and Office), file storage solutions and phone systems (VOiP) as well as any number of IT management solutions for running data centers, helpdesks, disaster recovery and on and on.

As you might see, a growing company needs a lot of software. The big issue, however, is management. For every piece of software, there needs to be (or should be) someone, or a team of people, responsible for supporting and maintaining it. In a large enterprise, there can dozens of people assigned to maintain a single application. There will be people tasked with keeping it running, securing it, backing it up, updating it and so forth. Software admin can be a costly, people-intensive area of a business. A poor choice of software tools can compound admin requirements.

Should you move to the cloud, with all this software? The maddening answer, as is so often the case in IT, is “it depends.” No two companies have the same cloud vs. on-premises dialogue. Sometimes, the best move is to leave an existing on-premises solution where it is. However, new cloud solution options are making the whole “should we move to the cloud?” discussion a lot clearer and simpler. With the advent of comprehensive cloud ERP solutions like Acumatica, it is now possible to run a wide spectrum of business software in a cloud/Software-as-a-Service (SaaS) model.

Acumatica is modular, with the ability to add functions like CRM and HR as needed. As cloud software, it can scale in huge increments, on demand. Admin requirements fall precipitously as the supplier’s admin staff takes over many of the laborious processes you used to have to do yourself. Without a solution of this type, growth will cause you to go through painful upgrades to software as you inevitably outgrow your earlier generation of business software.

If your business is growing and you want to think through the best software solutions to enable the smoothest possible expansion, let’s talk.

Additional Resources

Why Growing Companies Need ERP Software

How ERP Software Can Save Your Business Money

How ERP Software Solves Your Business’s Top Financial Management Challenges

Top Reasons for Installing a Warehouse Management System (WMS)

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It seems as if, for years, the warehouse was the site of rusting steel shelves and low expectations. Things have really changed. Today’s warehouse is an operational center, where customer-facing strategies come to life with services like same-day delivery and automatic stock-out notifications. These changes have not arisen out of nowhere. Competition from online businesses and customers’ demand for seamless, omnichannel experiences have transformed the warehouse. So has software. Warehouse Management Software (WMS) makes possible many of the innovations that put warehouse operations into your strategic planning toolkit.

With that in mind, here are some reasons to consider adding a WMS to your business.

  • Streamline processes—A WMS systematizes warehouse workflows like picking and label creation. The results include a reduction in errors and improvements in warehouse worker productivity.
  • Automate warehouse operations—With a WMS, you can automate operational processes and routines packaging, PO receiving, putting away, merchandise transfers and physical counts. The latter is accomplished with integrated barcode scanners. Customized workflows and forms eliminate the risk of people skipping important steps. They can also cut down on employee training costs.
  • EDI integration—Many suppliers still use Electronic Data Interchange (EDI), so it’s a good idea to be compatible with this mode of company-to-company order processing. A WMS should enable full EDI compliance, including the 856 Advance Ship Notice (ASN) standard. This makes it possible to use EDI to electronically communicate order and shipment details.
  • Track lot and serial numbers—The WMS gives you the ability to stay on top of serial numbers and lot numbers. They get scanned and then printed on the pick list and packing slip. This way, there is never a mistake about what was picked and shipped.
  • Operate hands-free—A WMS like Acumatica’s provides a pre-printed smart scan sheet that lets warehouse employees interact with the system using only their scanners. This is useful for people who have to wear gloves on the job. Scan sheets might include commands like “complete shipment,” “next/previous box,” and “remove item.” In addition, the sheet may contain audible and visual indicators as well as warnings that offer instant feedback if the wrong items are picked and so forth.
  • Generate useful operational data—The WMS can create data that’s useful for managing the overall business. For example, a WMS can report on on-time shipments, stock-outs, or “shrinkage” that might reveal a problem with theft. Warehouse managers can use data visualization and reporting to stay on top of the warehouse in real time.

Acumatica WMS is a module of the software’s Distribution Edition. As a part of the Acumatica system, it can easily integrate with your company’s ERP, finance, field service management and other software applications. Such integration helps make the warehouse a core part of business operations. It can also integrate Acumatica Commerce Edition. This helps you manage advanced warehouse functions for wholesale, manufacturing, retail and other businesses.

We have worked with many companies on the implementation of Acumatica WMS. If you would like to see a demo or learn more about how Acumatica WMS can benefit your business, let’s talk.

Additional Distribution Resources

Digital Transform in the Distribution Industry and How Cloud ERP Can Help

Looking at 2020 Distribution Industry Trends with ERP in Mind

Benefits of ERP Software for Distribution Business Management

6 Signs Your Business Has Outgrown QuickBooks

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QuickBooks is useful for basic accounting and is often preferred by small businesses for its affordability and user-friendliness. However, it is not suited for managing business processes other than financials. QuickBooks isn’t a full Enterprise Resource Planning ERP solution like Acumatica. If you’re struggling to run your business using just QuickBooks, or trying to keep the business running smoothly with a combination of QuickBooks and an ERP suite, you may have outgrown the solution.

Here are six signs you’ve outgrown QuickBooks:

1) Your Company Is Increasingly Reliant on the Cloud

While you can access QuickBooks Enterprise over the Internet, even Intuit will admit the product is not optimized for full cloud functionality. A lack of access to cloud data limits mobility and is thus less convenient than having a cloud-based system. No additional equipment or software are required to use Acumatica as an on-premises or cloud solution.

2) Your ERP Requirements Extend Well Beyond Accounting

Users can’t do much with QuickBooks beyond performing basic accounting tasks. If you’re using it as a check writer and reporting using Excel, it’s time for a more robust ERP solution. It’s also time to switch if your transaction volume is going up and you can benefit from CRM functions that integrate your business processes with those serving your customers.

3) You Require Full Relational Database Export

QuickBooks uses a proprietary database, so it’s hard to import data from payroll, billing, receivables and other outside systems. This can interfere with workflows and transactions, slowing your business down. You can better serve your customers and partners by updating to an ERP system that supports databases such as Microsoft SQL Server, Oracle or SAP HANA.

4) Your Financials Are a Mess

You can tell if your business has outgrown QuickBooks if it takes too long to bill clients or it’s difficult to determine your true cash balance. If meeting the new ASC 606 requirement or consolidating financial reports from multiple companies or divisions is a concern, it’s time to switch to Acumatica. It allows reports to be formatted the way you want. The ERP system also supports multiple currencies and multi-currency transactions.

5) You’re Entering Duplicate Data into Multiple Systems

The larger a business gets, the more data it needs to handle. If you’re spending time entering data into QuickBooks and then rekeying it into other systems, you’ve outgrown QuickBooks. Acumatica updates data in all systems when changes are made, so any user can see the latest document version or financial record, wherever they log in from.

6) There Are More Users Than QuickBooks Can Support

QuickBooks Enterprise supports up to 30 users. While this might suit a growing small business, at some point your company will probably need more people connected. Acumatica can be scaled as your company grows; it can even support multiple companies. Your business can therefore continue using a familiar platform without requiring a complete reimplementation (which can be costly and time consuming).

Next Steps After Your Business Has Outgrown QuickBooks

If you need a true cloud, full-function ERP platform that scales as you grow, you’ve outgrown QuickBooks and should consider Acumatica. The cloud ERP system offers flexible subscription and perpetual licensing options. Contact us to learn more about what this full-featured business management solution can do for your business or browse the additional resources below:

5 Disaster Recovery Disasters to Avoid

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No one likes thinking about bad news. Maybe that’s why planning for disaster recovery often doesn’t get the attention it requires. But without a solid plan that’s been documented and tested, your disaster recovery process can turn into a disaster of its own. Take the steps you need to ensure you don’t experience these disaster recovery disasters:

1. Recovery site not ready

There are two backup sites you need to think about when you create your disaster recovery strategy.

The first backup site is where your backups are stored. You need your backups to be stored securely, but also to be available quickly when they’re needed. It often makes sense to keep backups in at least two locations—one, onsite at your primary data center for use in small outages, and two, at your secondary location or in the cloud for use when the primary site is unavailable.

The second backup site is where you bring up your systems when your production site is down. Whether in the cloud or a secondary data center, it’s a good idea to keep this site relatively current with applications and data to allow the recovery process to happen more quickly.

2. Backups not available

You can’t restore systems to their production state without backup copies of systems and data. The problems go beyond potential inaccessibility of the site where backups are stored. Common backup problems include data that was never backed up or backup media that has been corrupted. Another potential problem is that the data backup doesn’t let you easily isolate the exact elements to be restored, forcing you to spend time restoring files that haven’t changed.

3. Recovery process not known

In the middle of a crisis is a bad time to discover you don’t know how to restore your systems. Not being documented at all is a worst-case scenario, but even a thick binder of recovery procedures doesn’t guarantee the process will run smoothly. This isn’t a process your staff is familiar with; maybe they remember it from a once-per-year test scenario, or maybe they didn’t participate in the test and have never executed the process.

In addition, no matter how detailed the recovery documents are, they may not be a match for your situation. Sometimes you’ll need to recover just a single file or a single server, not your entire data center, and comprehensive disaster recovery plans typically focus on the biggest possible outage. You’ll have to figure out a smaller-scale recovery process on the fly.

4. Recovery process takes too long

Every minute your business isn’t operational costs money, so restoring systems as quickly as possible is critical to minimizing the impact of a disaster. You should have a recovery time objective for every system, and conduct tests that verify you can meet those requirements.

5. Recovery process is error-prone

A manual recovery process is vulnerable to user error, and every recovery process is vulnerable to poor communication.

Take steps to avoid disaster recovery disasters before you experience a crisis. Let CCS Technology Group develop a disaster recovery solution that gets you through your disaster without creating new disasters along the way. Contact us to learn more about effective disaster recovery planning.

Additional Disaster Recovery Resources

Craft An Effective Disaster Recovery Plan

The Differences Between Backups, Disaster Recovery, and Archiving Matter

5 Changes to Make When You Switch to Disaster Recovery in the Cloud

IT Services that Meet Routine and Special Needs

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The vast range of managed services available means you can get help for every technical challenge you face. Managed services can help you handle the everyday support and maintenance your technology needs or address unusual special circumstances.

Managed Services for the Routine

Managed services shine in handling the routine tasks required to support technical infrastructure. Whether applied to networks, the cloud, desktops, or any other type of technology, the routine services handled by a managed services team include:

  • monitoring. No matter how much you wish it were different, technology can’t be left completely unattended. Problems develop, and the earlier they’re caught and corrected, the better. Managed services can ensure there’s appropriate monitoring of system activity and logs to trigger alerts that allow problems to be addressed as soon as they develop. Developing problems such as low capacity can be identified and handled before they create issues for users.
  • maintenance. It’s even better to prevent problems from developing than to fix them fast. Routine maintenance services ensure upgrades and patches are applied in a timely way.
  • backups. Every business should be routinely creating backups. Managed services can ensure they’re created reliably and stored where they can be accessed when they’re needed.
  • support. Users have questions every day; a managed services team can provide the answers they need to use their technology effectively.
  • security. Ensuring security is a critical IT function that’s made effective through execution of routine procedures such as installing patches, keeping firewall rules current, and reviewing log files.

Managed Services for the Unusual

Most of your IT needs are routine and they’re well-handled by managed services. One-off occurrences and unusual needs are also a good fit for managed services:

  • new technology. A managed services team can help you introduce new technology into your data center. No matter how much training you give your team, by definition they lack experience with a new technology. Managed services teams have expertise that comes from working with multiple clients, and they can smooth your transition to a new technology.
  • disaster recovery. No one want lots of experience with disaster recovery. Developing a solid plan is tough and executing it in the middle of true disaster is even tougher. Managed services can calmly guide you through resolution and restoration of services.
  • planning for the future. Staying competitive requires more than keeping your current technology operational; it requires assessing your needs and opportunities and developing a strategy for the future.

If you’re facing an IT challenge, managed services from CCS Technology Group can help you get on top of it. Contact us to learn more about how our range of services enable you to solve your IT problems.

Additional Managed Services Resources

5 Reasons Managed Services Are Good For Your Business

Choose the Right IT Service Type to Best Meet Your Business Needs

6 Big Benefits from Using Managed Services

Measuring Warehouse Productivity: Top 5 Metrics to Consider

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Warehouse management has a lot to do with balancing two competing needs: speed and accuracy. If you manage a warehouse, you typically want your people to work as quickly as possible without injuring themselves or causing damage to products. At the same time, if you achieve speed at the cost of accuracy, your business will experience customer complaints and costly restocking and re-delivery procedures.

Warehouse productivity is a measurement of how well you manage this conflict, together with factors like on-time delivery and warehouse utilization. The industry’s professional association, The Warehousing Education and Research Council (WERC) studies this issue, among many others, that affect distribution companies.

Their DC Measures 2019 annual benchmarking study highlights the importance of warehouse productivity. Here are the top five metrics from the report:

1. Order Picking Accuracy (percent by order)

This metric shows how accurately warehouse employees pick products for orders. Order picking accuracy can drop with multi-part orders, where the employee has to pick products from multiple bins. The metric is also a measure of the quality of order picking instructions. For example, if the order says “Product X,” but the employee finds two bins, each with Product X in a different color, this creates a problem. He or she can take a guess at what color is needed, and then have the company suffer the consequences of a return. Or, the employee can send the order back for confirmation, which creates churn and delay.

2. Average Warehouse Capacity Used

A warehouse is a financial asset. As a result, its rate of capacity utilization is an important number for senior management. If a company is only using 10% of its warehouse capacity, that’s a problem. It means they’re paying for the rent and upkeep of unproductive space. This may seem like an easy-to-spot problem, but with multiple sites and changing seasonal inventories, it can be difficult to measure accurately without the right software and procedures.

3. Peak Warehouse Capacity Used

It’s also helpful to know your peak warehouse capacity utilization. The number itself can be revealing, like if it’s too low. But, unless its 100%, then there’s room for improvement. Peak warehouse capacity used is a target, a basis for doing better. If the number was 70% last year, then maybe this year, it could be 75%.

4. On-time Shipments

Shipments reaching customers on-time is a critical success metric for warehouses. It’s important on its own, because it reflects if the warehouse doing its job right. However, late shipments also create hidden costs and difficulties elsewhere in the business. They cause customer service calls and complaints. They cause package tracking and other wastes of time. Ultimately, late shipments can damage your brand and cause customers to defect.

5. Inventory Count Accuracy by Location

Are the inventory counts accurate in each location? This is another stealth issue that is more important than it looks. If there are fewer items in a bin than the system says there should be, that might indicate theft or unreported damage. The results of miscounted inventory include unforeseen stockouts and fulfillment problems that negatively customer attitudes.

Strong warehouse productivity metrics arise out of good management overall, but also by means of software. This is especially true for business with extensive product catalogs and high rates of inventory turnover. Software and related technologies, like barcode scanners and RFID readers contribute to tight measurement and control of warehouse operations.

We work with many distribution businesses on the implementation of Acumatica Cloud ERP for distribution and warehouse management. This software solution enables you to measure the five key warehouse productivity metrics described above, along with many others. If you want to learn more about how Acumatica can help your distribution business function better, let’s talk.

Additional Distribution Resources

Recommendations for Selecting a Distribution ERP Solution

Looking at 2020 Distribution Industry Trends with ERP in Mind

Benefits of ERP Software for Distribution Business Management