Cengen Mobile Solutions (CMS)
"Building Profit Margins Back into Your Business"
Today more than ever before your profit margin is being squeezed out of your business from every direction. Customers want to buy for less and vendors are constantly increasing their prices due to rising fuel costs, foreign competition, higher interest rates, and the list goes on.
So, how do you build profit margin back into your business without slashing heads or eliminating the things that made you want to be in business for yourself in the first place? Everyone knows the answer to that question, you have to cut costs, but how?
The easiest way to cut costs is to eliminate mistakes. Most of you know where your mistakes are made but you can’t seem to eliminate them. In addition, most of you probably don’t realize the magnitude of lost profit due to the mistakes committed by your employees. Let’s examine one area that most mistakes are made in a typical stock keeping distributor (Picking and Shipping):
| Invoices per week |
200 |
| Avg. working days per year |
240 |
| Credits and Rebills per day (5%) |
10 |
| Errors out of your control |
5 |
| Total errors per year (5/day*240days): |
1200 |
| Average cost of an error: |
$75.00 |
| Total cost of picking and shipping errors per year: |
$90,000.00 |
If the distributor is earning 5% pretax profit, this is the equivalent of a $1,800,000 a year customer.
Ok, now that we’ve identified an area of pain, what do we do to stop the bleeding? You could police your employees better, threaten them with termination, or you could provide a tool to help them eliminate their mistakes. CenGen Technologies, Inc. has developed the CMS application to help stop the bleeding. The CMS system is designed to provide complete integration with your Enspire Distribution software system in the areas of receiving, put-away, picking, packaging, and cycle counting. These business processes are the core of your distribution warehouse operation. Enspire provides a great many features to help you manage your inventory but if your inventory accuracy is being impacted by 5 mistakes a day, your margins are eroding at an ever increasing pace. The CMS application extends the functionality of your Enspire system by providing these functions in a wireless smart device environment. CMS provides your employees with the tools necessary to ensure inventory accuracy.