#4   Optimize Inventory Levels
Optimizing your inventory levels is a key way to cut costs.  The amount of inventory that needs to be kept on hand will depend on the characteristics of each particular business.  Inventory should not be reduced to the point where sales and service are negatively affected, but there may be some strategies that can be used to reach a proper balance, to keep inventory levels down but still satisfy customer and internal demand. 

Much of the difficulty lies in knowing when to reorder items and how much to reorder.  Microsoft Dynamics GP has a Purchase Order Generator that will assist with this process. The Purchase Order Generator determines quantities needed based on the stock situation in relation to the stock goals and generates a suggested purchase order that can be reviewed and edited prior to release.  The PO Generator works with an item’s Order Point Quantity to determine if a purchase is required. If the supply of an item is less than its demand plus the order point quantity, a purchase will be suggested.  PO Generator can select the vendor based on the Primary Vendor assigned to the item, the vendor with the lowest cost or the vendor with the shortest lead.  This solution helps automate the reordering process helping businesses maintain optimal inventory levels.

by The Resource Group –Washington Microsoft Dynamics GP Partner

Four Ways to Cut Costs by Automating Your Purchasing Process with Microsoft Dynamics GP — #4 is a post from: ERP Software Blog

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#3   Streamline Your Budgeting Process
It is not uncommon for companies to make a number of budget adjustments and re-forecasts throughout the year.  Today re-budgeting is becoming an even more common practice with the volatility of the market.  Some companies are receiving unexpected cuts in funding, while others are receiving government funds.   Microsoft Forecaster, available with Microsoft Dynamics GP, is a centralized budgeting tool that lets you quickly create new forecasts and budget revisions in response to changes in your business. With Microsoft Forecaster, you can create ‘what if’ scenarios by copying an existing plan to a new plan and applying global and top-down adjustments with the help of a simple-to-use wizard.  This feature allows you to simply enter a dollar or percent increase/decrease to your budget at the summary level.  Microsoft Forecaster will make the changes to all posting-level accounts automatically, based on their proportionate share of the total budget.  A streamlined budgeting process can help save time, reduce errors, and control spending.

Stay tuned for my next post for Tip #4.

by The Resource Group –Washington Microsoft Dynamics GP Partner

Four Ways to Cut Costs by Automating Your Purchasing Process with Microsoft Dynamics GP – #3 is a post from: ERP Software Blog

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#2   Optimize Vendor Contracts and Create a “Preferred Vendors” List

Renegotiating vendor contacts is a key component in controlling purchasing costs.  You could save significantly if you are able to lower costs and improve the terms of your contracts.  The problem for a lot of companies is they don’t have easy access to vendor analysis information.  Without access to this key information, it is difficult to state a solid case on why they should improve your contract.

Microsoft Dynamics GP gives you the tools for managing contracts and analyzing your vendor purchases to provide you with solid data for renegotiating contracts.  Vendor contracts in Dynamics GP can be used for both inventory item contracts as well as service contracts.  Alerts and reminders can be setup to notify you of upcoming contract expiration dates.   Before locking in a new contract, vendor activity can be analyzed using tools such as Analysis Cubes for Excel, which allows you to slice and dice your real-time, connected data in Excel.  Many companies are using these tools to create a “preferred vendors” list, which helps employees focus on using vendors that will save the most money for the company.

Stay tuned for my next post for Tip #3.

by The Resource Group –Washington Microsoft Dynamics GP Partner

Four Ways to Cut Costs by Automating Your Purchasing Process with Microsoft Dynamics GP – #2 is a post from: ERP Software Blog

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#1   Control Employee Purchases
Many companies today are still “casual” in their controls around employee purchases.  Their purchase approval process remains a manual, paper-driven process.  With a lack of control and automation, employees may make purchases first and submit the expense for reimbursement after the fact.  Managers may spend time following up with employees and asking them to write up a request, even though the items are already being used.   This type of outdated purchase approval process can create budget overruns leading to unexpected expenditures.

Microsoft Dynamics GP offers a web-based Requisition Management solution to help increase control and visibility over the entire purchasing process. With Requisition Management, employees can enter purchase requests online for manager approval.  Requisitions are then automatically transferred to new or existing purchase orders in Purchase Order Processing.  Management has visibility into employee purchase requests before the purchase is made, so they can easily validate that the purchase requests are within budget before approving.  This online process helps reduce repetitive data entry and eliminates costly mistakes.

Stay tuned for my next post for Tip #2.

by The Resource Group – Washington Microsoft Dynamics GP Partner

Four Ways to Cut Costs by Automating Your Purchasing Process with Microsoft Dynamics GP — #1 is a post from: ERP Software Blog

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