D365 Finance & Operations and Dynamics AX Forum

Why You Need an Industry-specific ERP to Overcome Length Management Challenges in Wire and Cable Companies

By Nandita Nityanandam posted Nov 05, 2020 01:31 AM


The unprecedented growth of the telecommunications market, advancements in the power distribution sector, innovations in the automobile industry, and continuous urbanization are all causing the Wire and Cable market to prosper. It is estimated that by 2025, the Wire and Cable market will be worth $220.9 billion, with a CAGR of 4.4%. Although there are enough drivers propelling the Wire and Cable industry, when it comes to driving top-notch efficiency, many companies falter due to problems associated with accurate length management.

Why Length Management isn’t Straightforward

Most Wire and Cable companies manufacture standard-length cables to simplify the ordering and stocking process and to reduce waste. However, telecom and automobile companies that depend on good quality wires and cables for running their day-to-day business often have different length requirements. Since any amount of cable that remains unused on the shelf, wasted during installation, or that is over-specified can drive up manufacturing costs, Wire and Cable companies need to be able to customize these lengths according to the requirements.

Unfortunately, in the Wire and Cable industry, basic math does not work. Here’s why:

  • For a company that manufacturers wires and cables of standard length, meeting a customer-specific length requirement requires them to manufacture the exact length from scratch; it cannot just combine two cables from different drums to arrive at the required length.
  • At the same time, length also poses a problem when it comes to production planning; meeting customer’s specific length requirement means the Wire and Cable company will need the exactly number of spools with the exact length of cable in each spool.

Why a Standard ERP System is Incapable of Length Management

Standard out-of-the-box ERP systems often rely on math, making them incapable of carrying out accurate cable calculus and meeting the unique length requirements of the Wire and Cable industry. Instead of suggesting drums of specific lengths, a standard ERP would recommend delivering drums in a way that the combined length of drums meets the requirement of the customer. It would also not be capable of calculating accurate length-based inventory simply because it is not been built to cater to such requirements.

Using a standard ERP system in the Wire and Cable industry or heavily customizing it to suit the unique needs of businesses could result in high Total Cost of Ownership, limited flexibility, and lack of innovation – which makes it critical to adopt a system that caters specifically to the Wire and Cable industry.

How a Cable-specific ERP Overcomes Length-related Challenges

Embracing an ERP system like CableERP that is built precisely for the Wire and Cable industry becomes extremely important to meet the unique cable requirements of organizations while making the ordering and shipping process extremely convenient and cost-effective. An industry-specific ERP system CableERP, when integrated with an industry-leading solution like Dynamics 365 can easily accommodate the specific requirements of Wire and Cable distributors and manufacturers.

Built using innovative and user-friendly technology, CableERP along with Dynamics 365 offers a rich set of functionalities that are designed specifically for the business requirements of wire and cable manufacturers and distributors, enabling them to:

  • Deliver cables to customers in the lengths (and tolerances) as agreed
  • Run the optimal rewind and cutting operations, based on the orders created by the system
  • Have the right drums in front of the machine to make the customer lengths
  • Consolidate production lengths and minimize scrap and changeovers

In the Wire and Cable industry, having a modern ERP system in place has become a core business requisite; but just any out-of-the-box ERP system cannot help meet the unique requirements of the sector. What companies really need is a customized solution like CableERP, integrated with Dynamics 365, and offering features across length management, drum and reel administration, precious material pricing, cutting management, production optimization, and fiber management that caters to the complex length needs of organizations and helps in meeting business goals with ease and efficiency.