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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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Accounts Payable Management-How ERP Systems can improve Cash Flow

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

Automated management of A/P invoice prices simplifies this previously manual process. Also, crucial to your competitive advantage is the ability to know at any given moment what you owe and to whom.

Key Performance Indicators Dashboard

ERP Simplified Series

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. 

 

Accounts Payable Scenario 1:

By reviewing your global A/P from a centralized ERP dashboard on a daily basis, you can understand your cash flow needs-what you owe and to whom. By sorting each of your payables aging buckets in descending amounts you can see to whom you owe the most money.

• For further scrutiny, you can drill down into each invoice and analyze the detail of purchase orders making up any invoice.
• By reviewing your replenishment needs inside the centralized ERP dashboard, you can prioritize payments to each vendor you use.

Daily management of your accounts payable improves cash flow. It is also keeps your inventory optimized with vendor payment analysis.

Accounts Payable Scenario 2:

You can also verify purchase order pricing against vendor invoices from the same centralized ERP dashboard.

• Upon invoice receipt, your team verifies purchase prices on the invoice against your purchase order.
• You then receive automated notification of price discrepancies based on a variance threshold allowing you to take proactive measures to resolve the discrepancies.
• An A/P voucher gets created allowing you to record the inventory expense in the accounting period in which it was received.
• You can also review open accruals for receipts that have not had a purchase order price verification completed.

Automated management of A/P invoice prices simplifies this previously manual process. It assists you in verifying the vendor's pricing saving you time and potentially, cash, further improving your 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

 



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

 



Simplifying ERP Systems for Wholesale Distribution and Manufacturing

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Are you overwhelmed by the plethora of complex information regarding all facets of ERP systems for your enterprise?

In this series, we will break down ERP software piece by piece, to try to make it, well, simplified. ERP software simplified, is that possible? Let's explore...ERP Simplified

It's complicated... but it doesn't have to be

Your business is not simple, it's complex. So, you set processes to simplify each operational function. Let's look at ERP systems similarly.

Too often, we in the ERP software world take many basics for granted when we talk about ERP systems. We assume everybody knows how ERP software handles these basics and how it benefits them. We hear much more about the advanced functionality in ERP Systems. That's great, really needed, but many people still need to know the good ol' basics, the ones that drive your business and streamline your processes. So, assumptions aside, let's get simplified...

 

Software+Complexity = Business+Simplicity

It's true, ERP software is complicated, but the result is a business that's simplified, automated, and, because of increased productivity, one that runs more efficiently and profitably.

The complexity built into ERP software allows you to tailor implementations to your business, making it easier to access, to use, and... less complex.

In this series, we'll explore how the components of a customized ERP work to simplify your business including:

• Improving cash flow using accounts receivable and credit management, accounts payable management, and inventory management
• Optimizing inventory for maximum profitability
• Increasing sales and marketing effectiveness
• Managing procurement processes more efficiently
• Better material requirements planning
• More useful and productive trading partner relationships and EDI
• Enhanced customer service
• Increased warehouse management efficiencies from automation
• Simpler business processes derived from the right/best ERP implementation for your business

To see how these components work, one by one, and how by combining them, you can increase productivity and thereby reduce operating costs, sign up for our ERP Simplified series. You may be surprised to see how easy ERP can really be.

ERP Simplified Series

 



Recognize the symptoms of an out-of-sync ERP and find ROI

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Dynamic ERP, Dynamic ROI

If your supply chain business were a static entity, the ERP you implemented in previous years would still work perfectly fine, meeting your needs as well as the day you went live with it. Your WMS would still suit your situation nicely, your EDI and ERP would continue giving you all the business integration and business intelligence a savvy business exec could want.

But your business isn't static, it's dynamic.

The economy rises and falls causing restructuring then repositioning; you add new products and delete others; you add clients who, in turn, add new requirements about how to deliver not just the goods but the data associated with them; new suppliers, new compliance standards, and an ever-changing marketplace all conspire. Soon, your ERP and the affiliated component applications, fall out of sync with the business they support.

A clear view of a fuzzy object

Recognizing the symptoms of an out-of-sync ERP is easy:

• Costs are rising and containment efforts aren't keeping up
• Your IT ROI is flat or shrinking
• Your customers are hinting (or demanding) you be more responsive to their needs
• Fragmented data pools are costing you time and money
• There are growth opportunities on the horizon but you can't see beyond the next bend in the road with the ERP you have now


The hard part is making the right decisions to realign your ERP with the business you're running today and the one you anticipate running next month and six or 60 months down the road.

Avoid common mistakes

The most common mistakes we see companies making while grappling with large-scale ERP issues are:

Mistake #1 Implementing manual solutions
Result Data becomes even more fragmented and less integrated, resulting in less effective decision making.

Mistake #2 Customizing
Result Customizing is not only costly, but it digs you even deeper into an IT hole, reducing the number of options available to you in the future.

Mistake #3 Doing nothing
Result You end up throwing other resources and money at the problem, all while falling further out-of-sync with your business.

The opportunity for reducing costs from rethinking your ERP system warrants further return on investment investigation now rather than putting your ERP project on hold.

Consider the possibilities of better inventory accuracy, expanded sales channels, dashboards displaying real-time data, integration for ease of use, being more responsive to demand, being able to direct your employee's time to more productive projects. The list goes on; see our Innovation Guide to learn more.

 

Ask the right questions, get the right answers

Sometimes, you need to upgrade. Sometimes you need to implement a new system. Sometimes, just a few simple tools will keep your operation running smoothly for years.

Developed from our 30-plus years of experience, our Business Computing Assessment asks pointed questions designed to help you maximize the business integration and business intelligence you realize from your ERP and WMS, integrating your data and your business, and achieving the best possible ROI for every dollar invested in your IT infrastructure today and in the future. Couple the assessment with an ROI calculation using your numbers to help you make the right decision now to realize the cost reduction possibilities from an optimized ERP system.

HowToInnovate HowToImplement Free Kits includes innovation guides, business computing assessment, attend a virtual seminar and get an ROI calculation bonus!



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