North American Recycling Company (NARC)
Textile & Clothes Recycling with $2 billion annual revenues
North American Recycling Company (NARC) faced a major challenge. It was to gain visibility & traceability into their inventory. Specifically, the existing IT solution lacked the traceability at the sorting station to know the number of category carts by vendor. Though the company was using Microsoft Dynamics but it required the customer to tailor a lot of processes according to the ERP requirements.
This frustrated the customer. Instead of tailoring their existing business processes to Microsoft Dynamics, they decided to make a tailor made ERP that especially incorporated their existing workflow.
The inventory and sales were closely tied in the existing process. The workflows to which the current software lacked visibility included inventory receiving ( Raw materials received from vendor), sorting (Raw Materials sorted into categories), inventory management/Sales order assignment (Inventory is managed at the item level), Sales order management, shipping, and reporting.
Allied Consultants implemented a comprehensive solution and a new ERP was developed ground-up. The technical team was able to implement separate modules for receiving, sorting, inventory management/Sales order assignment, shipping, and reporting.
The receiving module was enabled to have the ability to enter a new PO for a vendor to log receipt record. Additionally, it had the ability to scan a paper PO received from the vendor and to log receipt record and to generate a bar code and paste it on each bale.
The sorting module was developed to track the total weight sorted by the staff by category and sorter’s system identity. The new inventory and sales modules allowed that the process of inventory capturing and assigning to sales order happened at the same time.
The customer was able to decrease the DIO (days inventory outstanding) by implementing the solution. The outstanding inventory was rationalized in each item category. The management immediately gained visibility into the most important categories of inventory/person activity such as:
- Total pounds/weight sorted at each sorting station by person, number of premium carts made by sorting station/by person
- Pounds by sorting station
- The sum total of all inventory captured by date, by item, and by category.
The solution also gave the operations managers the traceability to track total inventory by item by category shipped vs not shipped. This helped the customer’s end clients to decrease their average time to procure and the number of invoices disputed as the new solution allowed NARC to trace the inventory that was captured and assigned to sales order but not shipped yet thereby eliminating the chance of misreporting.
- Visual Studio