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ERP Handbook + Worksheet

How to Innovate ERP

Innovate business processes with ERP.  Learn how to reduce costs, rapidly respond to customers, and manage growth. The kit also contains a worksheet with challenging questions to help you promote internal innovation to increase productivity, thus sales.

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Inventory Optimization-How ERP Systems can improve Cash Flow

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Simplifying ERP Systems for Wholesale Distribution and Manufacturing series continues with Inventory Optimization for cash flow improvement. An additional Inventory Optimization article is forthcoming.

Key Performance Indicators Dashboard

Crucial to your competitive advantage is the ability to know your financial standing at any given moment and all that effects it.

ERP SimplifiedUsing a completely integrated ERP system you interact daily with key performance indicators (KPIs) via a centralized ERP dashboard. Knowing your financial standing helps you improve cash flow by intelligently interacting with your data so you can take proactive steps.

 

Inventory Optimization Scenario 1:

By reviewing your global inventory from a centralized ERP dashboard you can see an immediate snapshot of KPIs such as:

• Inventory valuation
• Inventory turns
• Fill rates
• What items are under the minimum
• Suggested replenishments

With this KPI information you can proactively take action, avoiding any adverse consequences. Imagine getting a snapshot of suggested replenishments to avoid the expense of back orders.

Inventory Optimization Scenario 2:

By using the advanced, automated tools inherent in an integrated ERP system, buyers can make informed procurement decisions. Buyers also receive assistance with advanced purchasing suggestions when the inventory management system automatically analyzes items that should be ordered using your collected data.

• Previously, inventory management was manual, cumbersome, perhaps even impossible, to accurately gauge your needs. Now, using purchasing calculations presented by your inventory management software, your buyers can utilize the most efficient buying method based on formulas which analyze your historical and forecasted data along with variables such as min/max, safety stock, and daily usage.

The inventory management system analyzes current needs, future needs, and vendor targets for special pricing and available quantity discounts.
• Your buyers are presented with suggestions across different product lines and multiple warehouses to take advantage of buying opportunities.
• Your buyers can analyze the suggestions and, based on any other human-known variables, they can update the suggestions.
• If desired, your buyers can further analyze other vendors you purchase inventory from by drilling down to compare vendor prices, deals, and lead times.
• With a click, buyers create purchase orders and print, fax, or email the POs.
• Along with suggestions, your buyers receive proactive, automated alerts for stock that falls below the reorder point and immediately deals with this exception.

Using your ERP software you optimize your inventory with suggested purchasing and tracking vendor deals and automated alerts. In so doing, you reduce your inventory carrying costs by replenishing inventory to optimal levels while taking advantage of vendor deals.

Wouldn't "What-if?" return on investment scenarios be helpful to allow you to see the effect reducing carrying costs has to your bottom line? ROI scenarios help you analyze and visualize the effects an integrated ERP system with advanced inventory management can have on your profitability.

With their newly gained efficiency, your buyers now have time for additional inventory management on even more profit-oriented tasks such as reducing dead stock, negotiating better prices with suppliers, or reviewing product mix? What else is on your buyer's to-do list?

You may be surprised to see how easy optimizing inventory with ERP can really be. To see how you can increase productivity across all departments and thereby reduce operating costs, sign up for our ERP simplified series. 

ERP Simplified

To further simplify your business, learn more about SaaS ERP, Software-as-a-Service, for distribution,manufacturing, and retail.



Accounts Receivable Management - ERP Systems Can Improve Cash Flow

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Simplifying ERP Systems for Wholesale Distribution and Manufacturing series continues with Accounts Receivable Management for cash flow improvement.

Crucial to your competitive advantage is the ability to know your financial standing at any given moment and all that effects it. 

Key Performance Indicators Dashboard

ERP Simplified

Using a completely integrated ERP system you interact daily with key performance indicators (KPIs) via a centralized ERP dashboard. Knowing your financial standing helps you improve cash flow by intelligently interacting with your data so you can take proactive steps.  Let's visit some common scenarios that just may sound all too familiar to you.


Accounts Receivable Scenario 1:

You review your global A/R from a centralized ERP dashboard by sorting your oldest receivables aging bucket, say 120 days old (You can define the aging anyway you like.). By sorting it in descending order, you can see which customers are holding up your cash.

• Now, your A/R manager can take proactive measures with customers and post a comment directly in the ERP dashboard about them. For example, "Spoke with customer's A/P manager who said they didn't have the invoices."

• Your A/R manager immediately found the invoices for the balance due by drilling down to the detail directly from the ERP dashboard. The invoices are immediately emailed to the customer who now indicates they will pay them with this week's check run.

• A follow-up "to-do" is posted to be reminded to watch for the payment. 

This scenario is played out for any days-old range you want to start immediate action. The to-do list becomes the pro-active action list for follow-up and collection calls enabling you to stay on top of your A/R to improve cash flow.

Accounts Receivable Scenario 2:

You set automated alerts in the ERP system to hold new orders when a customer's receivables reach your pre-determined amount.

• Your A/R manager, or whomever you select, receives an automated notification that the customer has reached their credit limit and their orders are put on credit hold.

• Now, your A/R manager can take proactive action, by staying on top of all held orders on a daily basis to get payments collected and orders out the door again.

This simple, proactive, automated alert keeps your accounts receivable-thus, your cash flow-from racing out of control. You can stay on top of "at risk" customers before they become a bad debt without somebody manually monitoring the process. As a bonus, you also keep your customer's new orders coming in to help with a positive cash flow.

You may be surprised to see how easy ERP can really be.  To see how you can increase productivity and thereby reduce operating costs, sign up for our ERP simplified series.

 

ERP Simplified Series

 



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