We have had a few clients who were initially using GP for inventory, sales, and purchasing, but handling their manufacturing processes manually (in an effort to replicate what they did in their prior system). After implementing GP manufacturing we have seen time and time again how implementing this system resolved problems of inventory visibility and accuracy.
Prior to using GP Manufacturing there were a few limitations of many other accounting systems:
- No integrated manufacturing system
- Record keeping was manual and in excel spreadsheets
- Raw materials and finished goods quantity updates were achieved using inventory adjustments.
In addition there were some common pains caused by the above challenges:
- Customer service had no visibility of production when customers asked about item availability.
- Inventory accuracy was low because all transactions were entered after-the-fact.
- Inventory cost and cost of goods sold were estimates based on the change in inventory levels from the end of the prior month to the end of the current month. No reporting available during the month.
- Lot tracking was completely manual. If a customer found a problem that was due to the quality of one of the raw materials in an item, determining which other customers had received the same lot took days.
Upon implementing GP manufacturing we have found that our clients resolve the problems of inventory visibility and accuracy that they were experiencing. In fact implementing an ERP solution such as GP manufacturing solved there issues in the following ways:
- Customer service can see items that are scheduled to be produced.
- Inventory accuracy has improved as raw materials are consumed or put back and finished goods are received real-time.
- Inventory is now at standard cost, with raw material yields and scrap reported as work orders are closed throughout the month. Raw material price variances are recorded at receipt and the GL is updated immediately.
- Individual lots can be traced in MS Dynamics GP. If a problem is discovered with a specific lot of a raw material, it is possible to identify the finished goods (in inventory and sold) that contain that lot so that they can act proactively to correct the problem.
For more information, you may contact us at [email protected] or by calling (704) 846-6750. InterDyn Artis is a Microsoft Gold certified ERP partner serving Charlotte, the Carolinas, and beyond. We hold
By Lisa Suggs, Senior Implementation Consultant at InterDyn Artis