Food and Beverage Mechanical engineering and Metalworking Forest Automative Service and Shop Floor Management

Food and Beverage

Food and beverage industry is the second largest manufacturing sub-sector and constitutes 22% of Latvian manufacturing output volume.

In the food industry, similar to pharmaceuticals, traceability, quality, regulatory compliance and rapid fulfilment are key requirements to fulfil. For each company the main objective is to maintain and control the recipes, to ensure control of raw material procurement, quality control of manufactured products and batch tracking handling both - the production costs and the pricing. Additionally, business management system should be able to support flow production and provide with tools for proper warehouse management. In this industry extended production batch control throughout the whole business process starting from raw materials till output is of crucial importance. Date of expiry, quality control data register, customer delivery control, damaged goods control and withdrawal option is the most critical requirements that ensure viability of food industry.

viaPro has long years of experience in designing and implementation of ERP solutions in manufacturing and sales processes in food industry.

Mechanical engineering and Metalworking

Mechanical engineering and metalworking sector is one of the leading industrial sectors in Latvia. It produces about 20% of total manufacturing industry output and value added, more information here.Manufacturing of fabricated metals area holds more than one third of the share and delivers the highest value added rate in the whole sector. Opportunities to maximize profitability and competitiveness in today’s global marketplace drive many metal fabricators to invest in new technologies that move their businesses forward and increase profits.

From a business management point of view, the industry's major and most critical tasks are two: to be able to determine the cost of the product upon receipt of the order to set the correct selling price, and be able to determine whether the delivery time will be as expected by customer. Quite often manufacturing is run as made-to-order or combination of made-to-order and made-to-stock.

viaPro consultants have seen in practice that implementation of ERP system helps enterprises to optimize and run material flow control, cost control, material and procurement batch control, quality control and warehouse management. High value added can be achieved by integrating material supply planning with suppliers in just-in-time delivery model.

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Forest

Forestry sector plays important role in Latvian economy being the only sector with positive export/import balance, key numbers here.

Also, forest industry is one of the most regulated ones across the whole supply chain. Certain activities are controlled by respective regulatory acts of Cabinet of Ministers, including round wood measurement regulations. There are also specific requirements set in the industry, e.g. Round wood measurement regulations developed by JSC Latvijas Valsts meži. Most complicated and at the same time most important task for companies in forestry sector is to determine the availability of resources and production costs at any stage of production in a real time. Although cost structure in logging and woodworking is different, methodology is similar – each cost of the object should be allocated to the self-cost and systemized for real time analysis in its place of origin. As a result, not only production processes become clear for financial purposes, but also companies are able to react quicker on price or demand fluctuations in the market. But how to do that effectively if trees are cut in the forest, not office, board from saw is placed directly into plywood instead of moving it through the warehouse?

In practice this can be solved with placing a strong enterprise resource planning (ERP) solution in the core that helps manage and control financial flow and takes real-time information from electronic devices involved in the production process – cutting and sawing equipment, forestry machines or simple mobile devices that employees use for data input. For Instance, saw log measurements are carried out by scanning each log which generates a huge amount of data to be processed daily. Business critical becomes capability to transfer these metric data into accurate quantitative and financial data according to regulations and contracts, settlement of accounts with suppliers and data transfer to business partners. To gain efficiencies viaPro is offering RounLink.

viaPro has accumulated experience in implementing integrated solutions in all logging and wood processing stages, starting with growing forest development and sale of saw logs till lumber processing and production.

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Automative

When speaking about automotive industry in Latvia, we mainly refer to car, machinery, equipment and spare parts import and trade.

From business perspective in machinery sector the most complicated and critical tasks are purchase-supply process control, serial number control and after-sales or service process. At the same time in spare part sector the most important is auto market inquiring, integration of manufacturer’s catalogs, warehouse management and supply chain management.

viaPro has gained rich experience in implementing integrated solutions for supply chains in automotive industry. Each technical equipment, for example, harvesting machine or road construction machine, can be referred to as individual project with its own activity plan, cost structure and service function, which requires integration with spare part management. This is unique process that needs specific ERP system setup. At the same time, spare parts wholesale process is different and it has to serve whole range of automotive industry not just one specific machinery unit. In this case one cannot prepare far in advance for specific spare part demand and wholesaler should ensure that customer can find and order the spare part in an easy way – by car model. Here wholesaler’s task is to react quickly and deliver the required part in requested address, which depends a lot on the ability to communicate properly with manufacturer’s business management systems.

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Service and Shop Floor Management

Service is a specific business activity. Traditionally one perceives service as repair workshop; still the activity is much wider. Each company that sells equipment or cars – both, industrial and household – has to ensure service functionality. Each manufacturer has to provide equipment maintenance. Each company who is renting equipment has to maintain their lease objects. When looking at it systematically, there are three tasks related to service function – after-sales service or warranty service, car and equipment repair works, preventive maintenance.

From business perspective this involves many tasks difficult to supervise, which without access to systematic data can create extra losses for the company: serial number tracking; term and customer control in case of warranties; warranty agreement control; invoicing or payment control (manufacturer or customer); preventive maintenance timetable and tasks and spare part lists for specific maintenance task; on-site repair control; cost of work activities; self-cost and others.

viaPro has long experience in ERP system implementation for service processes. Practice has shown that system implementation can bring huge improvement for service cost and revenue control and reduce percentage of redundant service tasks that are being carried out in favor of customer when one cannot properly track serial number data of specific part.

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