The key to getting the most out of your ERP software system is to be sure that it’s optimizing your processes and conducting a periodic strategic review with your software provider. A strategic review is a step above the basic care and feeding that your ERP software solution also requires.
To understand the benefits of a strategic review, we will look at two possible scenarios.
1. Your Business Is Static Especially in these very trying times, if your business is static, i.e., it is holding its own, you may feel relieved. But that does not mean you are happy. Clearly, you would prefer to see some year-over-year (YoY) growth, be it in sales, gross revenue, or net profit (or all three!).
As your Microsoft Dynamics ERP partner, Liberty Grove Software can examine your operations and processes to find strategic areas that could be tuned up and better optimized, allowing you to infuse a few more dollars into your bottom line and show an uptick in your overall business, or in certain areas of your business.
For example, let’s say that you are currently using a 3rd party application for warehouse management. Perhaps warehouse management wasn’t included in the original Microsoft Dynamics 365 Business Central Central/NAV implementation, for whatever reason. That 3rd party warehouse management system (WMS) is costing you anywhere from $100-$500 per user, per facility, per month. Let’s assume you have five users in 1 facility, which is average for a small company. That’s $500-$2500 per month per facility. Annually that’s $6,000 at the low end and $30,000 at the high end.
Get rid of that 3rd party WMS in favor of the WMS capabilities already available in your Microsoft Dynamics ERP, and you have just added anywhere from $6,000 to $30,000 to your bottom line.
2. Your Business Is Evolving
In this scenario, despite the trying times we live and work in, and despite the pressures most businesses are experiencing, your business is not just turning a profit; it is registering year-over-year (YoY) growth. Let’s say that your sales have risen. Your gross revenue has risen, too. But your margins are smaller, so your net profit is showing only a slight uptick. You could increase your prices, although that might mean your prices are no longer competitive, and you would lose that edge. Alternatively, you could cut costs, which would increase your profit margins.
For example, we would look at strategic areas where cost-cutting is often possible. Generally, tasks are currently being handled manually that can easily be automated or set up with workflows, such as the AP approval process. Payments can be made via EDI or EFT. Inventory management materials resource planning (MRP) can be completely automated, too. And these are but a few of the areas we would review to find cost savings that would further improve your margins and your bottom line.
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