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October 28, 2015

Atro Engineered Systems Says Bye to Year End Sage 100 Physical Cycle Counts

Atro Engineered Systems
Family‐owned and operated, Atro Engineered Systems (Atro) is a recognized leader in polyurethane suspension parts and bushings for heavy‐duty vehicles and equipment.

Challenge
Atro was spending about 2 hours every day manually counting inventory. According to Melissa McGinnis at Atro, the process was relatively slow and unstructured. “If a customer called because of a shipping error or late delivery, we’d jot down the items, send the list to the warehouse, and count that particular inventory later in the day.” But customer complaints and inventory variances were becoming an issue. Melissa recalls, “The numbers in our system weren’t reliable. We were promising to ship products to customers that we’d find out later we didn’t have on‐hand. And then when we had to make a $150,000 inventory adjustment at the end of 2013, we knew it had become a real problem.”

Atro was spending about 2 hours every day manually counting inventory. According to Melissa McGinnis at Atro, the process was relatively slow and unstructured. “If a customer called because of a shipping error or late delivery, we’d jot down the items, send the list to the warehouse, and count that particular inventory later in the day.”

But customer complaints and inventory variances were becoming an issue. Melissa recalls, “The numbers in our system weren’t reliable. We were promising to ship products to customers that we’d find out later we didn’t have on‐hand. And then when we had to make a $150,000 inventory adjustment at the end of 2013, we knew it had become a real problem.”

Solution
That’s when Atro discovered Automated Inventory Cycle Count (AICC) for Sage 100 ERP. This add‐on module works hand‐in‐hand with Sage ERP to streamline inventory cycle counts, making the process easy and efficient. Melissa says, “We’re running quite a few add‐on solutions for our Sage software and Automated Inventory Cycle Count is one our favorites for Inventory Management. Beyond the fact that it’s saving us a ton of time and money, it was easy to set up and simple to use with little to no training required.”

Results
Atro now has a proactive and systematic approach that no longer relies on randomly chosen inventory items. AICC automatically generates a daily list of items to count based on pre‐defined cycle parameters and then sends an email to warehouse staff. “We just about cut our cycle count time in half compared to our old manual spreadsheet method,” says Melissa. “But more importantly, we’ve been able to maintain 98% inventory accuracy. That alone saved us about $80,000 because we did NOT need to shut down production for the typical year‐end physical count in 2014.

With 98% accuracy, inventory variances and adjustments are now a thing of the past. Melissa is happy to note, “Our inventory variance at the end of 2014 was just $5,000 – compared to $150,000 in the previous year.” And even though you can’t put a number on it, the peace of mind that comes with inventory accuracy is important. She adds, “It feels good to tell a customer we can ship products on time and deliver on that promise. Now when we say we have it in stock, we actually have it thanks to AICC!”

Contact Us
Contact CertiPro Solutions to resolve your Inventory Challenges.

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