Many businesses have learned to do more with less after the last recession, especially manufacturers and distributors. Thinning profit margins put the pressure on many decisions including inventory and procurement strategies, shipping and logistics, and labor productivity. Instead of second-guessing spending, rethink cost-cutting by deploying a robust enterprise resource planning (ERP) solution.
When using multiple disparate and specialty software programs, it’s difficult to get to the heart of your business. Data is stored separately, in different systems, which makes it difficult to access and even more difficult to put together into the right context. If you can’t get to accurate financial figures or find ways to strategize cost savings and reduce waste without cutting corners, then how can you be confident that you are making the best cost-cutting decisions?
An integrated ERP solution, such as Microsoft Dynamics® GP, can provide the insight you are looking for so you can be confident you are protecting your bottom line without cutting corners. You can manage all of your business operations within Microsoft Dynamics GP including financials, inventory and supply chain, manufacturing and distribution operations, and other core business processes. A centralized solution makes it easier to enter and access the data you need, when you need it. In addition, built-in business intelligence can highlight key metrics, which you can monitor when developing cost-cutting strategies. You may identify inventory trends, for example, and create forecasting scenarios that could save money when buying in bulk or with longer lead times. Getting control over inventory management can also reduce the likelihood for needlessly overstocking the warehouse, which can put pressure on cash flow, or understocking which can lead to expensive back orders and unhappy customers. You can also use Microsoft Dynamics GP to follow invoicing activities. Time-saving automations can streamline invoice generation and approval, which gets the invoices out faster. You might also employ automated follow-ups that can reduce the number of days outstanding or find other ways to get customers to pay earlier rather than later.
The more you can dive deep into your business data, the better you can deploy the cost-savings measures that protect profit margins and improve your bottom line. Contact Sherwood Systems for additional guidance with replacing inadequate systems with a more modern, ERP solution that can support cost-savings.