Leverage Your ERP
By HAROLD KATZ, Technology Enabling Manager, SYSPRO USA
Albert Einstein was probably one of the greatest brains of the 20th century, but few of us know that not only was he a pragmatic and astonishing theorist, but also a very spiritual and personable person, very much in touch with music, love and life.
Well, SYSPRO has a very similar persona. SYSPRO has been supplying manufacturers and distributors with the latest and greatest in enterprise resource planning (ERP) for more than 30 years. The cornerstone of SYSPRO’s success has been the ability to deliver this pragmatic visionary technology, while at the same time, placing the customer relationship at the helm of its success. With one of the highest customer retention levels and leading technology, SYSPRO continues to enable its customers to better compete in their marketplaces.
Inspired by Einstein’s theory of relativity, SYSPRO USA developed its own theory: S=MC², where S = SYSPRO ERP, M = material and C² refers to cost and cash. The theory is about using amazing technology to get back to basics. Managing your assets and material, managing costs through efficiencies and visibility, and managing the most important business resource there is — your cash and funding.
Since the downward economic spiral in 2009, we are finally starting to see hints of an upward trend. Many pessimists will claim we are only seeing this because of the presidential election, but in the same breath, the optimists and opportunists will lay claim to the fact that this is a great time to make money.
The efforts put into place now to bolster the economy during an election year do not stop having an effect on the economy when the elections are over. They tend to last a lot longer than we expect. So take advantage of this time and stake your claim in the upcoming mini (hopefully long-term) boom.
Cash and cash flow should be your biggest focus during this period. What generates cash is the effective management of assets (material), optimizing efficiencies (costs) and managing your funding (cash). What SYSPRO ERP delivers are the tools that empower you to manage this material, costs and cash.
When times are bad, inventory levels are reduced due to the diminishing demand, and business is rationalized by reducing staffing. What this does is free up cash resources locked into inventory and costs that allow a business to fund itself during the downturn.
In contrast, after an extended recessionary trend, as the economy and business rebounds, companies often realize that their cash resources have been extinguished, and there is no funding available to pay for the growth. The cash was used during the tough times, and now manufacturing, inventory levels and staffing need to be increased to meet the new demand, but there is no money to do so. The effective management of material, costs and cash become imperative to ensure ongoing success.
In this blog, I am bringing attention to “getting back to basics,” focusing on the things that count. Material, costs and cash are the key elements to concentrate on, but how? Through the effective implementation of an ERP system like SYSPRO, small- and medium-sized manufacturers can ensure they have the tools to manage the basics, and the visibility and metrics to track and control all aspects of their operations.
What’s your take? Please feel free to leave a comment below! For more information or to schedule a consultation, please visit www.syspro.com.