Full Version of PalMate ERP Released

Pallet Enterprise, May 2010

PalMate v1.0 Provides Streamlined Communication and Real-time Inventory
By DeAnna Stephens

PalMate v1.0 is a revolutionary step forward in smart management and IT integration for pallet and lumber companies. It brings all the various aspects of managing a company into one system.

Have you ever looked for a better way to facilitate the flow of information between all areas of your company? How would you like to have real-time inventory information available to everyone in your pallet plant and office while actually saving money at the same time?

The newly released PalMate v1.0 can help you do all this and more.

Built by Automated Machine Systems (AMS), the first full version of PalMate, an Enterprise Resource Planning (ERP) system designed specifically for the pallet industry, is the result of extensive research and testing. AMS put a strong emphasis on making the full version more intuitive and user-friendly. New features of PalMate v1.0 include a new overall look and an improved layout for the navigation screen. The navigation screen now groups areas by department, making finding everything quick and easy.

“The new version is stable, fast and features a new layout that is more intuitive for users,” said Jamie Doyle, solutions manager at AMS.

PalMate can take the place of a disjointed system of record-keeping and tracking by linking all information needed by a pallet company, from ordering lumber to the delivery of completed pallets, in one central database.

Ed Healy, production manager for John Rock, Inc in Coatesville, Penn, has been using PalMate since the end of 2005 when his company became one of the first beta test sites. John Rock first started looking into PalMate because they wanted a smoother information flow, according to Ed. Before PalMate, they used a number of disjointed programs for different needs – from handwritten orders to Excel spreadsheets to a separate accounting program.

“Our old way of doing things was really similar to a lot of other pallet companies… piecemeal,” said Ed. “One of the main reasons that we even looked into an ERP package like this was to try to integrate all of our resources into a smoother flowing information stream.”

In the more than four years they have been using it, PalMate has become an integral part of John Rock’s work flow, according to Ed. They now have 10 work stations throughout the plant that can access the central database. Real-time communication flow is by far the best part of the program, Ed said. When used in conjunction with the Pallet Track software from Innovative Data Systems (IDS), real-time inventory is available to all users throughout the plant and offices.

Pallet Track provides easy-to-use bar coding, scanning and touch screen kiosks to gather data on inbound raw material, saw line production and inventory, new and recycled pallet production and inventory and more. These rugged kiosks are built to withstand the environment of the plant floor and integrate completely with PalMate for a comprehensive business management system. IDS is the exclusive supplier of all plant floor data collection systems for AMS, including IDS’ kiosk systems, wireless hand-held devices, and forklift mounted terminals. The IDS software sends all of the plant floor information to the PalMate software used for administration by managers and supervisors. This agreement was formed by AMS and IDS to avoid unnecessary and costly overlap of solutions in the industry.

Jim Honey, director of information systems for Universal Pallet Supply in Elkhart, Ind., also sees the real-time availability of information as a large benefit of using PalMate. However, Universal Pallet has taken it a step further by linking two of its locations together in PalMate.

“We have users on the other side of town, that hit PalMate through our private network,” said Jim. “So we can see real-time from here, what’s happening on the other side of town.”

Since PalMate allows all aspects of running a pallet company – customers, vendors, production, sales, inventory and more – to be managed and accessed in one central database, retrieving information is also easier. Jim said being able to go to one place for all of the information he needs is the most useful part of the program.

“It’s a one-stop-shop for all the info,” Jim said. “You can go in there and see sales orders, purchase orders, inventory levels, and the status of all those orders - whether or not a product has shipped. All the information is in one place.”

Being a comprehensive management system, PalMate includes functions to be used by every area of a pallet company.

“It does everything. I use it for purchasing lumber, inventory control, inventory for banking purposes, sales, invoices, and keeping track of customers. There isn’t a part of PalMate that I don’t use,” said, Kelly Bennion, vice president and COO of Challenger Pallet, which has locations in Montana, Idaho and Utah, and has used PalMate for about five years.

Production can be scheduled using the Assembly and Component Schedulers. In this window, each machine or work center can be entered along with their schedule capacity and orders can be dragged and dropped to fill the daily production time of each. This allows production crews to make efficient use of every work center. Every detail about orders, customer information, notes and pallet schematics follow the order through the system, allowing employees on the floor to pull up all the information, including drawings and component lists, of each order they work on.

“We have all the kiosks out on the floor and all of my men can see everything that’s going on, everything that’s scheduled to their operation,” said Kelly. “They can see it all.”

Drawings can be imported from AMS’s PalDraw software as well as IDS’s Click-Draw and the National Wooden Pallet & Container Association’s (NWPCA) Pallet Design System (PDS). When drawings are imported into PalMate, it also adds any components not already in the inventory list as well as the new pallet. Once a pallet is marked as built, the components used in it are removed from inventory and the completed pallet is automatically added.

In sales, it can be used to enter sales orders and track buying trends for each customer. When a new customer is added, all of their information is saved for easy future access. Sales order information is pre-filled based on a customer’s order history, but can be changed with the click of a mouse. This includes contact info, shipping addresses, billing address, shipping mode, delivery equipment, shipping charges, fuel surcharges and sales commission.

Having all the information stored in the system makes entering sales orders a simple process that anyone can do. At Challenger Pallet, salesmen sometimes call in and have a secretary or someone in the office quickly complete sales orders.

“That’s the beauty of it. Anybody can put the order in,” said Kelly. “As long as I’ve got everything in place, it doesn’t matter who they are, they can put the order in.”

In addition, salesmen can use past transactions to create order trending reports and estimate timing and sizes of future orders for each customer. They can even have reminders e-mailed to them if a customer is due for a new order, allowing them to keep in touch with each customer’s needs.

If the company runs an accounting program that is integrated with PalMate, the process of entering a sales order will additionally take the place of entering orders for accounting purposes. Currently, three well-known accounting programs can be integrated with PalMate – MAS90, Quickbooks and Peachtree. Accounting is a big area that can benefit from PalMate due to reducing the need for paper. All of the information needed for creating invoices can be accessed directly from PalMate, with no need to track down multiple pieces of paper. Before switching to PalMate, Universal Pallet had five different pieces of paper that had to be sent to accounting to create just one invoice. Now, only the signed shipper has to be returned.

“We cut it down from five pieces of paper down to one,” said Jim. “You wonder where all the information from those other pieces of paper went? It’s all in PalMate.”

AMS made the decision to build PalMate to integrate with accounting programs, rather than including accounting within PalMate, to allow users to continue using familiar programs.

“We chose not to include an accounting component in PalMate because business owners are normally very tied to their accounting packages. They have a sense of security with them,” said Jamie Doyle. “We also felt there was no need to reinvent the wheel with all the good accounting packages out there.”

The purchasing and receiving departments can use PalMate to enter purchase orders, keep inventory updated, and check the status of orders. The integrated system makes it easy to track what has been ordered and received, eliminating over-ordering to contribute to a better cash flow. In addition this area provides a simple way to manage vender information. In Vendor Admin, product, quantities, pricing and notes can all be stored to enable quick orders in the future. This process eliminates another step in accounting as well.

Shipping managers can use PalMate to coordinate all drivers, trucks and deliveries. Each driver and vehicle are placed on a spread sheet style calendar, and orders ready to be shipped can simply be dragged and dropped under each driver. The orders are sorted by the delivery date entered when the order was received. The approximate delivery time of each order is calculated based on delivery addresses and all are totaled up to calculate how much time the driver will need to complete the deliveries. Load sheets, packing lists, delivery tickets and driver schedules are all automatically created and can be printed straight from the shipper screen.

PalMate’s ability to integrate information from all departments eliminates redundancy. Information only needs to be entered once for it to be available to all areas. A sales order automatically creates a production order, a delivery order and all the information needed in each step in between. This elimination of redundancy can save a pallet company thousands of dollars a year on labor costs. At Challenger Pallet, PalMate has taken the place of employees dedicated solely to entering orders and programming Excel spreadsheets, saving the company $50,000 a year, according to Kelly.

“I don’t think people realize what kind of savings they can have,” said Kelly. “I’ve got a program that pays for itself. It’s a good program for that reason; it’s able to earn its own way.”

Not only does PalMate reduce labor costs, but it also provides increased accountability and transparency. PalMate tracks all changes made to orders, when they were made and what user made them. Additionally, unique security settings can be set for each user, limiting access to just the information that they need.

Now that the first full version of PalMate has been released, the development team will be focusing on what new features to add each year.

“We’ve gone in and cleaned stuff up under the hood from years of development, stabilized and made the software faster,” said Jamie.” Now we’ll choose a number of features each year to add.”

With many features being planned for addition, the first few years will probably see the highest number of changes. Plans are also in the works to begin annual PalMate training seminars this year based on experience levels. This would help new users learn the system while giving more experienced users training on additional capabilities of the program.

Along with the new version, AMS released a new quick-start guide for users and unveiled a Website dedicated solely to PalMate, http://www.palmateerp.com, with more information on the software. Free web demos are also available for companies interested in trying the software. For more information on viewing a PalMate demonstration, contact Jamie Doyle at (616) 797-3268.

AMS Pioneers Next Wave of Pallet Company Management Software

Pallet Enterprise, January 2007

Managing all the details in a pallet business can be like juggling 50 things at once. Growth adds complexity as more people need to communicate. Old systems may not foster enough open channels of communication to keep everyone informed. Customers continue to demand more and more causing pallet companies to have to become more precise and better managed. All of these factors have created an environment where many medium to large size pallet companies are hamstrung by their information systems. There is too much going on for management to keep on top of it all.

Automated Machines Systems (AMS) of Jenison, Mich. has developed a solution to help pallet companies better manage their data, improve order processing, generate better management reports and overall reduce wasted administration steps while improving office communication. Palmate™ Enterprise Resource Planning (ERP) software covers a wide variety of office functions for purchasing, receiving, shipping, order processing, production scheduling, inventory management, cost monitoring and general management. Palmate ERP allows company leaders to make smarter decisions using real-time information. It helps keep managers on the same page as they share data across a centralized system.

Chad Hoffman, the project manager for Palmate software, said that prior to switching to a system like Palmate ERP, most pallet companies rely heavily on handwritten records, large production boards, or basic spreadsheet program to share information. This causes a lot of unnecessary work and can make it hard to find out certain things when key employees are gone for the day. Very few pallet companies have a centralized program that stores all key data while integrating various functions of the business together. That is exactly what Palmate ERP does.

While there are other generic ERP solutions out there, Chad said this is the first system he is aware of for the pallet industry that covers all aspects of managing the order and production process from initial order to delivery. Initially, AMS is targeting new and recycled pallet manufacturers as well as crate manufacturers with its ERP solution.

ERP Implementation –
Getting Started

The primary ERP system is currently in the test phase (Beta stage for the computer junkies out there). A number of leading pallet companies are putting the system through its paces and helping to refine the program.

Steve Yelland, president of Rohrbaugh & Co., Inc., Hannover, Penn. is one of the primary testers. His pallet company jumped right in and has begun using the Palmate system for a number of key business functions.

Steve said, “Our old system was very fragmented. It was very difficult to track the flow through the plant. I just felt that there had to be a better way.”

Rohrbaugh considered developing a custom program. But once Steve heard about AMS’ program, he decided to give it a try. Steve said, “Even if there was some trial and error as we went along, it couldn’t get any worse.”

Rohrbaugh’s problems resulted from significant growth in a short period of time. Basically, the company doubled over the past 2-3 years, according to Steve. He said, “It wasn’t my dad’s pallet shop any more. As we grew, things were getting confusing.”

Rohrbaugh started using Palmate ERP in early 2006. It has continued to use Business Works, an off-the-shelf program, for its general ledger and accounting functions. Given the number of quality programs on the market for accounting and ledger management, AMS decided not to develop its own accounting module. Instead, AMS has developed interfaces for most common programs, including: MAS 90, Business Works, Peachtree Complete and are working on Quickbooks Manufacturing Edition.

Currently, Rohrbaugh is using the Paldraw drawing program in addition to the customer, order taker, scheduler 1, shipper and inventory modules.

Steve said, “Palmate ERP has made the entire system run smoother. Now, it is a live-time deal. The software enables us to give our customer an answer right away
and allows anybody to check on loads at any given time.”

As new modules come on line, Rohrbaugh plans to use those including: scheduler 2, purchaser, and receiver modules. Steve said, “Keep in mind they are still developing the program. There have been some hiccups along the way, but we knew that going into it.”

Steve explained, “My job is to be the cheerleader and to go out and keep the troops positive. That’s one downside of our running the software live. I am not the only one checking. I do have other people using it.”

John Rock Inc. of Coatesville, Penn. is another major test location for the new Palmate ERP. John Rock took a different approach than Rohrbaugh.

John Rock is only using Palmate as side-by-side test for order entry, production scheduling, order flow, and pallet inventory. In fact, they started doing this at the beginning of November 2006. By the end of 2006, the company had begun scheduling the delivery drivers and nailing room with the Palmate system. Integration with John Rock’s accounting package, Peachtree, is in the final stages.

Ed Healy, operations manager for John Rock, has been the primary tester and project implementer.

Ed said, “I did not want to disrupt our basic operations while we were proving out the basics of this program and making sure it is functioning properly. We are taking baby steps. We have been getting the data in the system and working with AMS to alter the order entry and navigation to work well with our processes.”

In the past John Rock has used simple techniques to track much of its information including paper records and spreadsheets.

Explaining why John Rock is excited about the prospects of the ERP, Ed said, “The bottom line is our hope is to save time. The goal here is to have one point of entry to disseminate all the information. It starts with the order entry. The ERP ties everything together and will hopefully lead to better inventory flow.”

He added, “AMS’ system seems pretty unique to us. I have not seen anything tailored to the industry as deep as this thing is now or could be in the future. By saving time out on the floor, we are hoping to have better staff utilization, which will help us maintain a respectable inventory and keep everything running smoother.”

Ramp up time can vary depending on the company and how organized its data is. While the basic install can be done in a matter of minutes provided that the server and network meet the requirements, full implementation including the importing of user data and establishing best business practices can take months or even longer. Chad says, “It is very important that we develop a sound implementation strategy with each company.
Implementation has to be tailored around the needs, requirements, and time-line of the users.

The drawing module is where the whole process starts. Pallet drawings are the basis for entering inventory data for components as well as finished goods. These must be entered first before the system can take order requests. Companies can either use Paldraw or Pallet Design System (PDS) that is marketed by the National Wooden Pallet & Container Association (NWPCA). AMS is in the final process of creating an interface that allows its ERP to work with PDS designs.

The second major step is to get all your customer and business data integrated with the ERP system. AMS handles this process and has already developed a number of interfaces with major accounting systems.

Implementation usually takes place in stages with companies using the inventory and order modules first. Chad said, “For most pallet companies, it is difficult to keep even a semi-accurate perpetual inventory.”

Chad typically starts with finished goods inventory. He works with the customer to get accurate data then moves to precut pallet stock and finally to cants or lumber. In much the same way, scheduling starts with shipping, then pallet production, and finally the saw line.

Beyond using the program, AMS looks at how it can help customers gather accurate data. Sometimes companies have to change processes or begin capturing data that previously had been ignored. Companies must ask the following question:
• What business processes do we have to put in place to get valuable data?
• Who will enter the data?
• How can we gather it in an efficient manner that is usable and accurate?

Chad said, “The ERP system could be phenomenal, but if you don’t have the business processes in place to capture the data and enter it in a timely manner, it doesn’t matter how good the system is because you won’t have anything of value at the end of the day. Data collection is necessary, but it doesn’t have to be cumbersome. Our goal is to find the simplest, most efficient process for collecting data in a given situation.”

AMS has provided one-on-one training as it perfects the program. The software provider hopes to offer detailed training manuals in the future. Currently, it does a lot of Web-based meetings and training. AMS has a 24 hour technical support line with an expert on call at all times.

Chad said, “Our software is so user friendly. It is very intuitive.” Both Ed and Steve agreed that the ERP is fairly easy to learn for anyone with basic computer skills.

ERP Economics
The initial sticker price may shock some potential customers. But when you consider the efficiencies that the program can bring and its ability to improve overall management information, the software can be well worth the initial investment.

“You’re not going to find anything that can be considered an ERP program for under $10,000. It just doesn’t exist,” said Chad.

ERP software usually runs $30,000 to several hundred thousand dollars. The price all depends on the complexity of the software. The full Palmate ERP starts in the $25,000-30,000 range.” The price can vary depending on any customization done to the software, total number of users, total modules used, etc.

AMS has developed Palmate ERP where users can get started with a basic, one user inventory tool for as little as $1,500. Although this single module is far from a complete ERP system, the price point is a very reasonable investment to begin pulling together the tools that will help run your business. This could then integrate with PDS or Paldraw.

Chad said, “By modularizing the program, we made it easy for someone to get their foot in the door.”

The ERP system helps with many of the functions that would typically be handled by an office manger. When you consider what it costs to hire a full-time office manager, the software begins to make a lot of sense.

According to AMS, here are some criteria to consider whether or not ERP is right for you:
• How much data entry is your company doing for orders and transactions? Sit down and look at how many times employees are keying in or writing data in different places. This hurts efficiencies, can lead to more order errors and can generally cause chaos.
• Does your company struggle with keeping track of inventory?
• Do you spend so much time struggling with mundane data details that key managers can’t focus on improving or growing the business?

Chad said, “The ideal ERP customer is a company that is growing and it has a couple of key people in its organization who are juggling a ton of information. They are running around in circles all day long.”

Relating to what Chad described, Steve said, “Our old system could be good for maybe one person. But when that one person was not available, it was very chaotic here when a key person was off. It was a disaster waiting to happen.”

Steve added, “In my mind, I wanted a system where everyone was looking at the same thing. Now if everybody is doing what they are supposed to do, it will show you where you are as a company.”

There has been more than $600,000 invested in the development of the Palmate™ ERP software to date, which will exceed $1,000,000 by the end of 2007. It would cost a lot of money to tailor a standard package or develop a custom system that fits many of the unique requirements of the pallet industry.

The Palmate ERP did not require any computer upgrade or significant hardware cost for either John Rock or Rohrbaugh. Neither pallet company reported any surprises as far as the cost of the program.

The basic database architecture behind the ERP utilizes a MS Sequel database. The system can be accessed remotely using the Internet. However, most installations are designed to be used on a local network.

Key Features
Palmate combines primary business functions into one database. The key is how the system handles inventory. Everything is connected so that an action in one area triggers the appropriate response in other departments. This automated process reduces a lot of time required for data entry or account management.

Beyond a basic ERP, the system is tailored to specific challenges and needs facing the pallet industry. Chad said, “The inventory items and the properties the system has have are very specific. For example, the pallet type could be strap– notched, chamfered, or four way. You don’t record that kind of information with a standard inventory package.”

One example of how the specialized program saves time is the brokerage module. Pallet brokers may source one order from three different people. When a company creates a sales order, it will marry a purchase order associated with the order. This can help the pallet broker better calculate gross profit and find the best price. The system allows the user to easily create a freight purchase order. The system even remembers previous experience and suggests possible vendors based on pricing and availability.

Multi-level inventory analysis allows the user to track inventory through the system on a value added basis accounting for waste and processing costs. It tracks multiple levels from raw logs and cants to pre-cut lumber to finished goods. The system calculates actual cost on first in, first out basis.

The Palmate ERP helps improve the productivity of equipment and human resources, provides better data to reduce waste, and calculates actual cost to report true gross profit on a per item/per order basis.

Implementation Road Blocks
Anytime a company makes major changes, there will always be slow adapters or possibly even those within an organization that oppose the new program. Old habits can be hard to brake even for those who are excited about the new way of doing things.

Steve explained that some people just want to have a piece of paper. He tells his staff that once a piece of paper is printed it has become obsolete. Real time data allows people to know up-to-the-moment what is going on with the business.

Neither Rohrbaugh nor John Rock reported problems with employees accepting the new technology. While there have been some bugs along the way, everyone seems to be taking the process in stride. A key for John Rock has been upper management support. Ed said, “The owner and upper management strongly supports this new ERP system. They see the need to integrate all of these different functions.”

Getting one person to drive the implementation of the program and management support seems to be primary factors for project success.

Still in Development
AMS still has nine months of development left on a few of the last major modules. The Palmate Plant Floor Inventory Management System is in development. This module organizes production reporting off the plant floor. It ties in with your receiving of materials and plant floor inventory transactions. Data can be captured in the following ways: Bar-code scanners, wireless hand-held computers, touchscreen terminals mounted on a forklift, and directly from PLC’s of equipment. In the future, the system will be able to directly capture data from nailing machines without requiring data entry.

A customized reporting tool is in the works. This gives management greater flexibility to examine unique data key to any one business. Also, AMS is working on Scheduler 2, which covers the scheduling and production for the saw line.

Currently Palmate offers a variety of solutions for recyclers and supports specific inventory types such as recycled pallets and cores in the ERP system. However, a more comprehensive module for recyclers is in the early development stages. This enhanced module for recyclers will integrate on a deeper level with plant floor data collection as well as maintaining piece rate payroll. This expected to be released early 2008.

Ed from John Rock said that the process was going slower than his company expected. There is a lot more to successful implementation than they anticipated. But they believe the process will be well worth the effort in the end.

A problem with fixing bugs is that sometimes efforts to fix one problem actually cause another bug in some other aspect of the software. The integration of the various parts means that everything has to be just right for the program to work as intended.

Ed said, “This has been a learning process for me as they go along. In the beginning I was kind of skeptical, but in talking with some other technical people outside of AMS, I have learned that this is how it is when you are developing a new software program.”

Steve from Rohrbaugh said, “The software is still in development. If you think that you are going to go out and buy the AMS software, and all the questions in your business are going to be answered today, then you’re going to be disappointed. AMS still has some work to do on it. Keep in mind that in my opinion, there is nothing out there that works any better. AMS’ software is tailored to the pallet business.”

Palmate ERP Modules
Currently Available
• PalDraw – Drawing program
• Accounting Integration
• Inventory Management
• Inventory Type Editor
• Inventory Tags and MRP
• Sales Order – includes Ordertaker, Order status, Customers/Admin, sales reports
• Shipping – includes Shipper, back-orders
• Purchase Order – includes Purchaser, PO status, Receiver,
Vendors/Admin
• Scheduler 1 – includes production scheduling for nailing lines, production reporting, work orders, substitutions, cost reporting
In Development
• Brokered Order - Links Orders and PO’s together and supports brokered sales
• Scheduler 2 – includes production scheduling for saw lines, production reporting, work orders, substitutions, cost reporting
• Recycling Enhanced – Handles labor and management functions unique to recycling industry
• Active Reports – Custom report design tool
• Quoting – Generates custom quote based on projected costs and lumber pricing
• Plant Floor IMS – Enables real-time plant floor data collection

New Technology Unites Business Management Functions

Pallet Enterprise, June 2006

ERP The Instrument Panel and Navigation System For Your Business.
By Chad Hoffman

If you’re like most pallet companies that I have encountered, your business data is scattered throughout various software programs, spreadsheets, drawings, and hard copies on file in your office. Although time and experience have made all of these pieces necessary, you may be feeling that there is little to tie the information behind your business together. As the industry continues to change, many pallet manufacturers and recyclers are seeing the increasing importance of the role that information management will play in running a successful, growing business.

You may have the best equipment, staff, and location, but poor handling of business processes and information systems can cripple your potential for growth. If the business side of your company is running poorly, you could be losing money in places that you are not even aware a problem exists. A solution for such data disconnect is Enterprise Resource Planning (ERP) software.

For some of you, the information technology aspect of business is something you may prefer not to deal with because it can be a bit overwhelming to the novice. Others may be suffering from technology disenchantment caused by a solution that failed to meet your requirements or created too much overhead once it was implemented. Regardless if you are an avid innovator or someone who is a bit reluctant to embrace new technology, adapting to change is one of the inevitable parts of running a successful business.

My pastor’s wife once told me, “Change is good. Growing things change, and changing things grow.”

There is a lot of truth in that simple statement. Change is always an opportunity for growth. Some of the greatest changes in industry have been brought about by the rapid advancement of technology. Just 15 years ago, we were really pushing the envelope with the implementation of a fax machine and a desktop computer with a floppy drive. Now we are hard pressed to find a company that doesn’t depend daily on the use of their computer network, various software packages, PDAs, and cell phones to get business done. ERP is one such technology.

What Is ERP?
When we are talking about ERP (Enterprise Resource Planning), we should immediately think enterprise software.

• ERP is software that runs on your network and integrates every segment of your business (i.e. accounting, production, inventory, and logistics).

• ERP provides a platform to enter, share, arrange, and process data company-wide.

• ERP provides and integrates tools with business intelligence that will help with: costing and quoting, production scheduling, inventory management, materials requirement planning (MRP), human resource management, and asset management.

ERP – The Instrument Panel and Navigation System For Your Business.
A good ERP system provides instant insight into the key metrics of your business. Much like the instrument panel in an airplane, a good ERP system will tell you in a glance:

How much fuel do I have? What are my current inventory levels? How far will my current resources take me? Will I be able to fill my current orders? What do I need to purchase? What do I need to cut?

What is our current heading? What orders are we building today? What are we cutting today? What are we shipping today? What did we cut, build, and ship yesterday? Can I take this last minute order that my customer is requesting?

What’s my altitude? Are my profit margins maintaining a safe level?

How fast am I traveling? Am I maintaining a level of productivity that will get me to my destination? Why didn’t I cut or nail as many board feet as I did last month?

What is my orientation? What customers am I most suited to serve profitably? Where am I positioned to gain larger market share? Am I best equipped to be a volume manufacturer or a specialty shop?

What Can ERP Do For A Pallet Manufacturer Or Recycler?

A good ERP system can tie the loose ends together. In most pallet companies, there is a mixture of solutions that has been implemented over time. Pallets are drawn and analyzed in PDS™. The pallet is then priced out in a customized Microsoft Excel™ spreadsheet and quoted from an accounting package.

In most pallet companies orders are entered or recorded in at least two different places (usually three or four). This includes the accounting package for invoicing, one or more spreadsheets for the production schedule (both nailers and saw lines), and the shipping schedule. A good ERP system can integrate these processes into a smooth flow from drawing to invoice and greatly reduce duplicate data entry and error resulting from last minute order changes, cancellations, or additions.

A good ERP system enables better data collection off of the plant floor. Many pallet manufacturers as well as recyclers have implemented various plant floor solutions such as:
• bar-coding or tagging to manage rough lumber inventory
• touch screen data collection on sort and repair lines
• industrial handheld computers to record production and inventory transactions
• electronic counters and measurement devices on a saw line
• data collection directly from the PLC of a nailer or sort line

ERP is a platform that can receive data from all these solutions and organize it in a timely and meaningful way that will provide the full return on investment for the time, money, and energy spent on data collection.

ERP technology helps establish best practices and business processes that are sustainable as a company grows. Regardless of changeover in management team or who might be on vacation, the establishment of best practices and business processes will insure that the company continues to run successfully. This allows the management team to build the business as well as building the pallets.

What Does An ERP System Cost?

The initiation of a good basic ERP system for a single location will start in the tens of thousands of dollars. Adding modules, locations, additional integration, and hardware can easily reach into the hundreds of thousands of dollars. Like all capital investments, it’s all about ROI (return on investment).

Most people that I talk to look for a 12- 18 month ROI on equipment purchases. At that point, it becomes a “no brainer”. Technology is a bit different. With software we like to see our ROI in 9 months or less. It is also important to consider the internal cost of implementation of a new system. There are real costs associated with deployment and training on the new enterprise system.

The final pieces that need to be accounted for when projecting your ROI are maintenance and updates. The industry standard is 15-20% of the original purchase price annually for maintenance, updates, and service on enterprise software.

After all the homework is done the question remains, “Can you afford not to leverage technology to your advantage?” Do some more digging if you are not convinced of the benefits that ERP software provides. Consider completing the checklist accompanying this article. You may just discover how the benefits of ERP can turn even the most ardent skeptic into a believer.

ERP CHECK LIST
You may need ERP if you…

✓ ...currently do (or plan to do) $3 million or more in annual sales
✓ ...record order information in more than 3 places (this includes whiteboards and spreadsheets)
✓ ...don’t have adequate tools or processes to maintain perpetual inventory
✓ ...have multiple delivery drivers on staff
✓ ...run multiple locations
✓ ...are using multiple non-integrated software solutions
✓ ...have a hard time adjusting to last minute customer changes
✓ ...are recording plant floor data on paper and are not able to organize or process it in a timely or meaningful way
✓ ...are dependent on the knowledge of a few key employees
✓ ...are struggling to maintain proper profit margins

AMS Beta Program Brings Enterprise Resource Planning to Pallet Industry

Pallet Enterprise, December 2004

Automated Machine Systems Inc. (AMS) is a full design and supply integrator providing complete pallet logistics from start to finish. The company provides component machines and equipment for pallet manufacturing and recycling as well as complete systems and also computer software.

AMS provides several ‘off the shelf’ programs for pallet manufacturers and recyclers. In addition, it has developed a much more sophisticated program for managing pallet businesses that it has made available in beta or test form to several customers. This new program, Palmate Enterprise Resource Planning (ERP), is scheduled to be made available in early 2006.

AMS offers a suite of software solutions for pallet recycling operations. The AMS Palmate™ Pallet Management System, which also can be integrated with accounting programs, is geared for tracking and analyzing production in pallet sort and repair operations.

Palmate Pallet Management System for recyclers can be customized to meet individual requirements in even the most demanding recycling operations. The program can utilize either bar code labels or optical recognition technology that ‘reads’ a sticker or colored crayon mark put on the finished pallet by a repair worker. When integrated with a company’s accounting program, for example, data can be transferred for payroll calculations.

Palmate helps companies capture and analyze data related to production, quality, inventory, and other aspects of its pallet recycling operations. It tracks production of employees and inventory, including various grades of pallets, as well as inventory cost.

AMS offers two software drawing programs: Paldraw is a drawing program for pallets and Cratedraw is a drawing program for crates and containers. A new release of Cratedraw is scheduled for 2006.

Paldraw has features for making a two-dimensional scale schematic drawing of the pallet, creating a three-dimensional image of the pallet, figuring the cost of the pallet, generating a quote proposal, and storing and accessing information for customers and vendors. All schematic AMS Beta Program Brings Enterprise Resource Planning to Pallet Industry drawings are printed to scale on a desktop printer. The program lets the user ‘drag’ and place boards on the pallet with the computer mouse or remove them with one click, change the dimensions of multiple boards at one time, and it automatically fits and distributes boards across the pallet. Cratedraw functions similarly and has similar features for producing scale drawings of crates and containers.

The AMS Paldraw program is currently the ‘front end’ of its Palmate ERP software. However, when it is made available next year, Palmate ERP will integrate with the newest version of the Pallet Design System, PDS 4.0, which also is scheduled to be released in the spring.

Enterprise Resource Planning (ERP) software is multi-module application software that helps a manufacturer or other business manage the important parts of doing business, such as sales, purchasing, managing inventory, scheduling production tasks, shipping and invoicing, and tracking the status of orders. It typically uses a single, relational database for storing information.

AMS developed a beta version of the Palmate ERP program, which has been in use by three customers since summer. It is a client-server program that is installed on a company’s server or main computer and networked to desktop computers. Although initially developed for pallet manufacturing, AMS plans to enhance the software to incorporate pallet recycling operations.

Palmate ERP has several modules for different operations and tasks in a pallet manufacturing company, such as taking orders from customers, scheduling production of pallet components, scheduling pallet assembly operations on machines or manual methods, purchasing raw material and other supplies, shipping and receiving, and invoicing. The program records the various operations in a business and creates accountability.

Security features permit employees only to access and use authorized modules of the program. An employee with authorization to use the system may only have access to one or a few modules necessary to perform their pertinent tasks. However, it also enables managers with greater access to have information on the company’s complete range of operations, to analyze operations and make more informed management decisions.

The software captures information in ‘real time’ and incorporates ‘drag and click’ features to move information from one window to another. The program also can work with companies that have multiple locations yet still manage information in ‘real time.’

No other software program offers such a comprehensive approach to overall operations, from buying raw material and taking customer orders to shipping and invoicing, according to Chad Hoffman, AMS software solutions manager.

The program incorporates the use of bar code tags that are attached to raw material – cants and rough lumber. (AMS is modifying the program to also incorporate the use of raw logs in manufacturing new pallets.) Tracking the raw material
through the complete manufacturing process can help determine waste factors of certain types of material supplied by specific vendors. “It’s about data collection,” said Chad. “Anybody can collect data in a simple, cost-efficient way if they are committed to do so.”

Information in the invoicing module can be exported directly into accounting software to automate bookkeeping. For example, when an order is received, the system can automatically generate an invoice and automatically send it via computer fax to a customer. It also can create a freight requisition and send it to the company’s trucking contractor.

Palmate ERP will generate a number of various reports for management in order to analyze various operations. Besides determining waste factors in raw material, it can figure yield of pallet components from raw material and other issues. The system has customer contact information and tracks data on current orders, including bills of lading, invoicing and shipping.

One of the most significant areas that Palmate ERP can help a company is in the area of inventory management, according to Chad. “There’s a real need for it,” he said. “People are searching for some way to manage their inventory. We are able to analyze lumber inventory on a real-time basis.”

Palmate ERP can tell a manager that he does not have enough stock in inventory to make the pallets to fill a certain order. It also can schedule the processes to make the parts and assemble the pallets.

Many pallet manufacturing businesses, Chad noted, have difficulty maintaining a proper inventory. It is a key aspect of successfully managing the business and its profitability, he added, because failure to properly manage inventory – having the correct volume of components on hand — leads to costly rescheduling of cut-up lines and nailing machines. “We are giving them the tools to make that happen,” said Chad. As the system acquires a history of data, it can be used to make projections, such as how much inventory is required at a given time.

Managing inventory is a complex undertaking, noted Chad – perhaps the most challenging aspect of running a pallet manufacturing business. Managers need to be knowledgeable about markets for raw material, their company’s pallet products and component requirements, and yield and production matters related to its cut-up operations. Palmate ERP can help them manage the various information yet remains flexible enough to handle lastminute changes. It can enable a company to be pro-active in managing its inventory instead of reactive, said Chad.

“Being reactive is costly in changeovers,” he said, whether it is changing over cut-up lines or nailing machines. Every unnecessary change-over can cost a company hundreds if not thousands of dollars, he estimated. Palmate ERP can eliminate the need for those costly changeovers, he said. That benefit alone, and the savings it would accrue, could enable a company to pay for the software in a matter of weeks, he estimated.

Overall, the most important benefit the program brings to a company is helping it to ascertain the true cost of goods produced, Chad explained. Because of the many variables involved, some pallet companies “find it hard to verify profitability” on certain orders, he said. “People have to be able to analyze that.”

In a typical Palmate ERP installation, anyone in a management position plus additional employees may be involved in using the program, Chad suggested – anywhere from 10-20 users. Not all users would have access to all the modules, however; most employees with access

Palmate ERP may be integrated with other business accounting programs, said Chad, such as MAS 90, Great Plains, Solomon, NA Vision, QuickBooks and Peachtree. may only work in one or two modules.

The base price of the AMS Palmate ERP is about $30,000. The projected payback for the program is 6-9 months, Chad estimated. It will be sold with a measure of customization for each customer. By comparison, AMS has worked with some customers that have spent hundreds of thousands of dollars on custom accounting programs, according to Chad.

Customers using the beta version are benefiting from having information in one place about customers, orders, invoicing, and production, said Chad. The program is helping these businesses maintain relationships with customers and keep up-to-date on the status of customer orders.

The beta process of fine-tuning the software will be finalized by the spring of 2006, Chad predicted. Some modules of the program already have been finalized.

AMS provides complete installation service and on-site training for customer employees. Its staff can evaluate a company’s computer network to determineif it has sufficient resources. It also can arrange for off-site, secure, remote access to a company’s network in order to perform trouble-shooting. AMS offers several different service contracts with varying levels of service.

AMS also supplies all hardware for use with its systems and loads it with the appropriate software, whether highspeed printers, bar code label dispensers, scanners, rewinders or other equipment.

AMS has developed significant resources to the software segment of its products and services. It currently employs five software developers and is adding another.

“We have seven people” devoted to this segment of the company’s business, said AMS president Kris Chayer. “That enables us to be a leader in the industry and to break new ground.”

“We’re here for the long haul,” he added “We’re investing in the future for the pallet industry.”

The use of computers in the pallet industry is still in its relative infancy, Kris observed, and he has assembled a team of employees to prepare for the future of the industry.

AMS also provides products and services to support pallet repair, sorting, handling, wood recovery, grinding, washer/dryer, palletizing, and painting systems. Its line of equipment includes pallet dispensers, stackers, tippers, flippers, prepping equipment, grinders, an extensive line of conveyors, heat-treating chambers, and more. The company can provide integrated solutions for new or existing equipment environments with small or large volumes of pallets.

In addition, AMS provides services for consulting, plant layout and design, maintenance and service, and supervised systems training.

AMS Introduces Palmate™ Pallet Management System

Pallet Enterprise, July 2002

Automation? Computerization? “The answer depends on our customer,” said Kris Chayer, president of Automated Machine Systems Inc. (AMS) in Jenison, Mich. “All of the product platforms within AMS are customer-need driven. Therefore, our customers make the decisions.

” Customers within the pallet industry are making decisions to implement automation and computerization every day. Faced with increased competition, rising labor costs, and greater demand for ‘just-in-time’ delivery of inventory, these businesses realize that they must implement technology like automation and computerization in order to become more efficient and profitable.

AMS is a major supplier of automation to the pallet and material handling industries. As a full service, design and supply integrator, AMS provides products and services that support pallet repair, sorting, handling, conveying, wood recovery, grinding, palletizing, washing, sanitizing, drying, heat treating, ergonomic handling systems and painting with the AMS Palcoat™ paint system.

AMS is committed to helping the pallet and material handling businesses operate more efficiently and effectively in areas such as labor savings and increased production. Its newest innovation is the AMS Palmate™ pallet management system with bar coding.

Since it’s inception in 1997, AMS has always had a simple philosophy: identify the industry and customer needs, then develop high quality products and services that will cost effectively meet those needs.

Though this philosophy remains the same, industry and customer needs continue to evolve and change. So AMS product offerings are never static but continue to change to meet customer and industry demands.

“Each and every customer is unique, so we must constantly be ready to listen to our customers and then deliver a product or service that fills those unique needs” said Kris.

Some customers have implemented full automation and technology, some have a little, and some have none. AMS works diligently to provide cost effective solutions that will fill the needs in each of these segments of the pallet and material handling industries.

The birthing of the solutions begins with a simple question: How can AMS help your business operate more effectively and profitably? “The answer to that question is sometimes interesting,” said AMS vice president Gary Curless.

“By asking questions and listening, we have identified a definite need to bring computer solutions to our customers — whether they have implemented automation or not,” Gary added.

AMS has received many requests from the industry relative to data gathering and tracking issues. This includes such areas as getting accurate data, time of inputting the data, controlling inventory coming in and going out, actual counts for piece rate work, quality control, productivity issues, and pallet grading — to name a few. The overriding request is to make the solution fit the customer’s specific needs and make it simple to understand and administer.

These common challenges facing both small and large businesses led AMS to develop the Palmate™ pallet management system. It was developed by Pat Lyons, an AMS staffer who is a microsoft certified professional and quickbooks developer partner.

AMS custom designs software applications for all areas of a customer’s business from inventory control to accounting and payroll. AMS can engineer software that integrates with existing systems, such as Peachtree, Quickbooks or other brands in accounting and payroll or various inventory programs. Palmate™ can also operate as a stand-alone, complete application designed specifically for each customer’s needs.

The basic Palmate™ system consists of a bar coding, inventory control and accounting system. It comes with a high-speed printer, bar code label dispenser, scanners (wireless or line), rewinders and software.

While the hardware is available from different sources, Pat is quick to point out that the software is the real key. If the software is not easy to use and understand, the customer will never take full advantage of its capabilities.

AMS simplified the Palmate™ solution to make it ‘user friendly’ so that the individuals who input the data and those who view and utilize it do not have to be computer whizzes. The system is custom designed for each customer, right down to customized bar code labels generated from the high-speed printer. The labels provide vital information about pallet size and grade and the employee who built or repaired the pallet. The capability even exists to produce RFID or Radio Frequency Identifications tags for more long-range tracking of pallet pools.

Wireless scanners can quickly store data for later download to the Palmate™ software. Line scanners can directly input the information for viewing. This ‘live’ data can be displayed on screen with fields for each worker to show inventory count, grades, hourly production, and even pay. The click of a button will display easy to read charts, bar graphs, spreadsheets or other modified data for more detailed information.

The software can be designed to then transfer this information directly to the customer’s accounting program for payroll calculations. In addition, the information flows to the inventory management program that shows on-hand inventory, ready to go inventory, grades — even total inventory cost. This dramatically improves accuracy, saves time and money, and positions a company to respond more quickly to the changing demands of its specific marketplace.

The key to the Palmate™ pallet management system is its simplicity of use and flexibility. “By simply consulting with our customers and finding out what information they need, we developed a system to help them more effectively and profitably run their businesses,” said Brian Williams, AMS director of sales and marketing. “AMS can custom design a ‘user friendly’ system that can easily and cost effectively be revised as those needs change.”

AMS realizes that the term ‘user friendly’ has truly been abused over the years. Therefore, it provides complete training with the Palmate™ pallet management system to ensure that its customers are able to use it fully to get the maximum benefits. Customer personnel are trained to use and operate all hardware, download inventory to the computer, and display the easy to use charts, graphs, and spreadsheets.

One of the hallmarks of AMS over the years has been its ability to custom integrate solutions for customers. Some customers had no automation at all and were just looking to begin with a few pieces of equipment — either new or used — that could help them operate more effectively and profitably. Others had some existing automation and were just looking to add a few pieces. Some desired a completely new automated system to help improve the bottom line. In all cases AMS listened, developed cost effective solutions, and then assisted in implementation. Along the way, AMS gained a wealth of experience.

The Palmate™ pallet management system continues to build on the product line heritage and philosophy of AMS. Its staff listens, identifies the needs and provides the solution to fill the needs. This is a work in progress, like all of the other AMS platforms, because industry and customer needs change.

Whether or not a customer has automation, AMS says it can design a cost effective pallet management system to save time and money. “After all, if you’re going to invest your company’s hardearned dollar in a solution to help increase effectiveness and profitability, it just makes sense to work with a company with years of experience that will listen and custom design a product or service just for you,” said Gary.

Whether a company is big or small, AMS has positioned itself to provide automation and computerization — either or both. It has years of experience and is committed to providing its customers with high quality, cost effective, and complete pallet logistics from start to finish. AMS can supply your automation and computer integration needs.

AMS is a member of the National Wooden Pallet and Container Association and the Canadian Wood Pallet and Container Association.