Equipment and Supply Distributors

With ERP FACTS you can track your customers equipment for them as an added value

Fluid Power Distributors Industry Overview

What is Fluid Power?

Fluid Power is energy transmitted and controlled by means of a pressurized fluid, either liquid or gas. The term fluid power applies to both hydraulics and pneumatics. Hydraulics uses pressurized liquid for example, oil or water: pneumatics uses compressed air or other natural gases. Fluid power can be effectively combined with other technologies through the use of sensors, transducers and microprocessors.

Fluid Power Distribution Definition

Fluid power distributors can be classified into two types; those who sell Original Equipment Manufacturer (OEM) applications, and Manufacturing, Repair, and Overhaul (MRO) applications. Fluid power distributors must be well versed in the tolerances and specifications of the products they sell; hence there is an engineering component to fluid power distributors. Fluid Power accessories are sold as individual components or as systems into OEM and MRO applications.

Infor ERP FACTS functionality:

· Production Orders and Light Manufacturing – Fluid Power distributors often assemble items like hydraulic pumps – or perform other light manufacturing tasks at their facilities.

o Allows distributors to keep assembled or manufactured items in their solutions with one price and one item code, eliminating the need to re-enter long lists of line items each time they sell and/or assemble the products.

o Makes it easier for the staff to determine how many items or kits they can assemble with what they have in stock by searching product data base to find all of the components necessary to manufacture a kit or assembly and by calculating the least common denominator of these pieces.

· Die Charge Outs – Fluid distributors crimp hoses for assemblies to meet customer needs. There is wear and tear each time a distributor uses this tool.

o Helps distributors recoup their losses by enabling them to automatically levy a charge for die cut assemblies.

· Flexible units of measure – While some distributors use the metric system to measure products, others use the English Imperial system. And, customers might use different measuring systems to request their products.

o Automatically converts different units of measure to the users’ company standard.

· Return Material Authorizations – To better serve customers – and make sure that they only accept good actually sold – many distributors want to automate return material authorizations (RMA) processes

o Automatically generating RMA slips for each product that moves off of a distributor’s premises.

o When customers return goods with RMAs, distributors can generate cash or credit refunds through Infor ERP FACTS, then return the stock to inventory or discard it, depending on the issue. If the distributor discards the stock then FACTS factors the cost of the item into moving average cost of the particular SKU, so distributors can recover any losses.

· Rebate Management – Top fluid power manufacturers --like Aeroquip Hydraulics—offer rebates that help distributors maximize profits and attract new customers.

o Tracking and automating vendor rebates electronically and reflecting rebates in General Ledger and pricing schedules

· Serial and Lot Tracking – Important for manufacturers warranties and product recalls, tracking serial and lot numbers on items like hydraulic pumps, manifolds, and end gauges is an important part of a fluid power distributors’ business.

o Allowing the users to record the serial numbers on everything in a warehouse while offering flexibility in how this information is tracked and recorded. For example, distributors can record item serial numbers as they enter their business to produce detailed inventory reports. Or, they can enter them into Infor ERP FACTS at point of sale.

o Allows users to track lots as they enter, move through, and move out of the warehouse

· Off-Site Secondary Processes – Fluid power distributors regularly send stock items out of the warehouse to be assembled or re-worked to meet customers’ needs.

o Tracking purchase orders, costing, and quantities, also monitors the amount of time the inventory is off premises for better inventory control.

o Also manages inventory sent for secondary processes through a Work-In-Progress (WIP) account that tracks inventory for the financial and inventory evaluation purposes

· Hose Assemblies and Assembly Decoders – Many fluid power distributors sell – and assemble

o Tracking the depth of the fitting that covers the hose (cut factor) and tells users how much hose you need for each complete assembly. For example, if a customer requests a 24-inch hose assembly with two inch D-Length on the couplings, the solution will factor the length of the couplings and tell user to cut a 20-inch piece of hose

o Providing an assembly decoder; Infor ERP FACTS keeps records of template item assemblies, complete with the different optional components you could use to complete each assembly. ERP FACTS simplifies the process by allowing users to select only the appropriate components for each piece from drop down menus.

· Hose Tracking – Fluid power distributors often sell hose.

o Tracking how much product is on each roll and from where orders should be pulled