Material Yield System Meets Specialized Long-Standing Needs of the Plastics Industry
Even with the growing contribution of the Plastics Industry to
the economy of the
United States – and the
world – relatively few major
supply chain vendors have
chosen to target this indus-try
systems and/or modules.
Rather than focusing on
the special requirements of
the plastics industry, the
majority of ERP/supply
chain vendors develop soft-ware
that addresses the
needs that plastics manu-facturers
have in common with other industries.
Plastics suppliers must speed order fulfillment, enhance
inventory visibility, further channel relationships, maintain
operational flexibility and maximize profitability. Addition-ally,
they need the ability to leverage business to business
commerce. Plastics suppliers require a solid financial sys-tem,
one that provides powerful financial and cost account-ing
functionality with drill down capabilities.
Plastics suppliers need complete inventory visibility to
meet fulfillment commitments and enhance customer satis-
multiple locations, plastics
industry planners can
reschedule in the event of
problems, sales people can
determine product avail-ability
and delivery expec-tations
can be met.
Plastics suppliers have
to move product along the
supply chain and into the
hands of the customer.
They need insight into
alternatives to select the
most expedient methods.
They must engage in
proactive channel analysis,
including sales analysis for marketing planning, demand
analysis for replenishment planning and cost/revenue analy-sis
for profitability, decision purposes on contracts, quotes
and channel product mix.
Plastics suppliers need the ability to trace items back to
their sources, track them from source to current location,
arrange multiple drop shipments and identify all cost ele-ments
associated with the movement of the products.
All aspects of channel relationship management, including
Customer Relationship Management (CRM), Partner Re- lationship Management (PRM) and Vendor Relationship
Management (VRM) are important. Contract management;
demand replenishing; cross-reference labeling; and returned
merchandise authorization (RMA) are all vital considerations.
Plastics suppliers may also require software for multisite
operations, including multi-site engineering change management,
multi-warehouse/multi-bin sourcing and costing,
accurate landed costs for importers, purchase order options
(sales orders, including blanket S/Os and releases), quoting
and estimating and lot traceability. Additionally, they need
the cost- and time-saving abilities to consolidate orders on
one invoice or multiple deliveries on one order or across
Many plastics suppliers also want to leverage the advantages
of the web with Internet buy and sell-side solutions.
They look to web-enabled software to provide customers with
access to information, order visibility, on-line self-services and
greater communications: all integral to the critical concept of
value-added fulfillment. At the same time, they want the ability
to take advantage of fulfillment cost savings via trading
exchanges for on-line RFQ bidding, Internet transmission of
purchase orders and production schedules and electronic
procurement using supplier catalogs.
Primarily, as with all suppliers, those involved in plastics
seek to remain competitive in a dynamic marketplace. They
therefore need tools that will enable them to level the playing
field in the short-term and emerge as leading suppliers
over the long run. This objective is the promise of
ERP/Supply Chain software systems.
One major ERP/Supply Chain vendor, SYSPRO, is broadening
its focus on the Plastics Industry. SYSPRO enterprise
software is being successfully utilized by plastics manufacturers
who employ processes such as injection molding and
vacuum forming. SYSPRO has also expanded the applicability
of its enterprise software. This new solution allows plastics
suppliers to leverage all the advantages of a proven and
integrated ERP/Supply Chain solution.
New System Meets Specialized Needs
In a large segment of the plastics industry, namely cut-shape
suppliers, material is typically sold according to customer
specific dimensional requirements. Rather than ordering
standard size sheets, rods, tubes, etc., customers typically
purchase custom sizes, requiring the suppliers to cut
materials from existing inventory. These custom cuts typically
result in remnants, which, depending on the type of
material used, may have value. Good business dictates that
remnants be valued and returned to inventory, so they can
be considered for future order fulfillment. The re-stocking of
remnants, however, imposes additional burdens on sales
personnel who must calculate yields for the purposes of pricing
and order fulfillment. These calculations, which must
take into account the widths of the blades used the cutting
process, can be extremely time consuming.
SYSPRO has augmented its enterprise software with a
system that not only enables plastics suppliers to gain the
full benefits of a total ERP/Supply Chain solution, but which
also solves a long-standing problem for manufacturers and
distributors involved in the production and cutting of plastic
sheet, tube and rod.
“Custom” cutting typically creates remnants. Since suppliers
cannot justify the time and effort necessary to measure,
value and assign inventory numbers for the return of
remnants to stock, many consider these remnants “waste.”
Tri-Star Plastics Corp., estimated that the plastic scrap generated
by the cutting process amounts to nearly 40% of the
total produced. In fact, Tri-Star, was central to SYSPRO’s
development of a solution to alleviate the nagging problem
of time-consuming yield estimations and excessive scrap.
SYSPRO applied its software expertise to develop a solution
— the Material Yield System (MYS.) MYS successfully
eliminates nearly all of the waste due to scraps, reduces
estimating time and enhances customer service by speeding
the turnaround of custom cut orders. Equally as important,
MYS supports the environment through the possible
elimination and reclamation of material remnants. Perhaps
more significant, the SYSPRO Material Yield System can be
a major contributor to profits.
Custom cut orders require suppliers to determine how the
cuts can best be made from standard size sheets, rods or
tubes in order to maximize yields and minimize scraps. It
can take many man-hours to gauge:
- If the order can be filled from existing inventory;
- If additional materials must be secured from another
branch’s inventory, made or purchased in order to satisfy
- How to make the required cuts to maximize yields;
- How to allow for blade widths.
The Material Yield System “automates” this process by
making yield calculations from full sheets, rods or tubes
and/or stock remnants and facilitating the return of scraps
to inventory. The system automatically creates new part
numbers and pricing for the scraps returned to stock.
Further, the Material Yield System then attempts to fill custom
orders from existing inventory, inventory at another
branch, purchasing material, or a combination of each.
With the system’s ability to make yield calculations automatically,
training time for new employees is minimized.
Sales professionals no longer need to be involved with yield
calculations; they are free to devote time to what they do
best – sell. In fact, savings can be easily calculated based
on the number of inside sales professionals, the average
number of yield calculations done per day per sales person,
the average time to calculate a yield and the average inside
sales persons yearly salary.
Highlights of the Material Yield
Yield Calculation – when processing a quotation or a
sales order for cut sheet, rod, or tube products, resulting
yields are automatically calculated and displayed from
existing inventory and inventory master items based upon
customer-specific dimensional requirements. A cutting
workflow is created if any cutting operations are required
with blade widths taken into account in
yield calculations. The sales person is in
complete control of the actual items
selected for order processing.
Inventory Part Creation – The
system creates the inventory part. Each
inventory part includes information pertinent
to material type and dimensional
Remnant Put Back – The last step
in the cutting process is the remnant
put back. This feature encompasses the
issuing of raw material to the job,
receipting the cut item and placing
remnants back into stock, automatically
creating new inventory codes and
updating the cost of goods sold on that
line item. Furthermore, remnants
returned to stock can be put back at
zero cost or have a value placed according
Because the system integrates in
real-time with other selected SYSPRO
enterprise software modules, such as
the Sales Orders, Purchase Orders,
Inventory Control and Work in Progress
modules, among others, all users work
with the most current data.
The SYSPRO enterprise application
provides the data capture and presentation
requirements needed for efficient
and effective enterprise and supply
chain management. In fact,
SYSPRO software enables suppliers to “customize” a system
without resorting to changing code. The ability to call up
specialized applications while operating within SYSPRO
software gives management the flexibility to “customize” a
solution to meet any unique requirements. Additionally,
SYSPRO e.net solutions enable SYSPRO software to communicate
with disparate systems along the entire supply
chain, greatly enhancing efficiency.
The capabilities of SYSPRO software extend to both short
and long production runs in manufacturing environments
that characterize the plastics industry: make-to-order;
make-to-stock; configure-to-order; assemble-to-order and
The SYSPRO enterprise solution is a fully integrated,
modular enterprise system and the engine that drives an
extended enterprise. SYSPRO software optimizes the abilities
of single and multi-site manufacturers and distributors.
It offers outstanding price/performance and balance of functionality.
Application modules cover integrated financials,
sales, purchasing, inventory, MRP/production, forecasting,
distribution, Advanced Planning, Scheduling & Execution
and CRM and enable a company to tailor a solution specific
to its requirements.
For more information, contact Stan Goodrich,
SYSPRO, 959 South Coast Drive, Costa Mesa, CA 92626,
714-437-1000, Fax: 714-437-1407, E-mail: stanley.
firstname.lastname@example.org , Web: www.syspro.com.