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Reducing Demand Volatility through the Adage ERP and CRM System.
The Adage ERP and CRM System directly addresses this problem by reducing such variability and enhancing a firm’s monitoring capabilities on its business processes.
In the fast-moving business environment of the process manufacturing industry, only the very competitive firms survive. Those who know the ins and outs in this industry are quick to admit that it is demand-driven. The Adage ERP and CRM System is a business solution software that specifically caters to the needs and challenges of process manufacturing firms. It is also the only ERP and CRM System that uniquely caters to this industry.
Infor Global Systems (Infor) developed the Adage System for firms involved in high-volume and repetitive processing. It specifically applies to the manufacture of food, beverage, chemicals, and life science. The Adage software enables process-manufacturing firms to automate all its functions and manufacturing processes for easy tracking of products and fast implementation of changes in the market. As a result, process and demand variability are reduced through the execution of pro-active solutions from the moment that production starts until the receipt of payments. The solutions address problems encountered in the automation of functions and workflows, tracing and validating batch production, adherence to industry regulations, and customer support. As such, the Adage System balances the need to manage production while maintaining the customer-centered approach. The emphasis on customer service makes it possible for a firm to manage its promotional activities effectively.
At the beginning of the manufacturing process, the Adage System captures information related to requirements of raw materials and other relevant resources. Demand information is incorporated to determine the volume of production at a particular time. Based on inputs for every process, the time and resource conditions for every batch of the product are estimated. The computation of required resources from distribution to sales is also done by the System.
In 2005, Infor released an enhanced version of the Adage with the enhancements in key stages of production. The Item/Lot Characteristics allows a firm to assign characteristics of every lot or batch of output. These characteristics define the quantity of output and inventory. As such, production conditions are adjusted to allow such conversion. A classic example provided by Infor is the production of alcohol, which is characterized by temperature and percentage proof. Since alcohol can be measured in wine gallons and proof gallons, the conversion from one measurement to another entails an adjustment of the characteristics and implemented in the production process. If the firm decides to increase the production of low-proof alcohol, then it process would entail higher temperatures. Hence, the levels of inventory based on demand are adjusted in a timely manner.
Other demand-driven solutions in the 2005 Adage version includes Blending, which enables a firm to create a new lot or batch of product based on the existing lot; Least Cost Formulation, which facilitates the temporary creation of a production formula when constraints in prices, raw materials, and industry requirements arise; Regulatory Compliance, which aids the firm in calculating and locating lots to meet the requirements imposed on process manufacturers, such as Trade Identification Number (GTIN) and Bioterrorism compliance.
Overall, the Adage ERP and CRM System imparts a very significant degree of freedom to a process manufacturing firm. Firms can now effectively manage inventory, pricing, and risks within a demand-driven industry.
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