How to Trade…the Right Way

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Strengthening relationships with suppliers and vendors can improve the profitability of your business, as well as impress your customers.  Knowing where to buy the raw materials or products needed for your customers is an important first step in strengthening the supply chain.  When you have a customer order, you need to be able to determine what inventory you have on hand, and what you need, how much to order, and when to make sure it’s delivered.

Organizing both inventory and supplier data in one place will make it easier, and quicker, to make these quick decisions that will not only keep your customers happy, but keep your cash flow in check.  Profit margins can depend on how you make your purchases from suppliers and how quickly you need them delivered.  You don’t need to buy inventory if you already have it in the warehouse.  With real-time inventory counts, you don’t over-buy inventory or run out right when you need it most. You can also use your real-time inventory counts to determine how much inventory to purchase, when it’s needed.  You can save money when you are able to buy in bulk and have the time for a normal shipping schedule.  On the other hand, if you order in smaller quantities and rush an order, you can expect to pay extra.

Paying your suppliers on time is also important.  Delaying payments or paying late can cause problems with your suppliers and they may choose not to do business with you until you can reconcile payments or they may stop doing business with you altogether.  Housing your data in one place can streamline finances, along with other core business operations, and will introduce automation, making it easier to route invoice approvals and complete payables in a timely manner.  Paying suppliers on time will save money in late fees or other penalties, as well as improve the profit margin.

Strengthening supplier relationships, optimizing inventory purchases, scheduling deliveries, and paying vendors on time can all have an impact on your bottom line.  Contact NAV-X for more information about the technology that will make it easier to partner with your suppliers and how you can trade in a way that saves time and money, and improves customer satisfaction:

By Sheldon Kralstein of NAV-X, LLC, Advanced Distribution Solution for Microsoft Dynamics NAV

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