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Leveraging Your ERP System to Manage Materials, Costs and Cash Part 1

Posted on 21 February 2013 by Erin Schlee

leveraging-your-ERP-systemAlbert Einstein was one of the greatest minds 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, who was very much in touch with music, love and life.

SYSPRO has a very similar persona. We have been supplying manufacturers and distributors with the latest and greatest in ERP for over 30 years. The cornerstone of our success has been the ability to deliver this pragmatic visionary technology, while at the same time placing the customer relationship at the helm of everything we do.

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 technology to get back to the basics: Managing assets and material, managing costs through efficiencies and visibility and managing the fundamental business resource – cash and funding.

Over the past few months, the US economy is finally starting to see hints of an upward trend. Many pessimists will claim we are only seeing this because of the Presidential elections, 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 cease having an effect on the economy when the elections are over. They tend to continue a lot longer than we expect. Our mission is to ensure that you are geared and your business is set to make the most of the opportunities that are presented through any such booms (be they mini, but hopefully long-term).

Cost and cash flow should be the biggest focus during this period. What generates cash is the effective management of assets (Materials), optimizing efficiencies (Costs) and managing funding (Cash). SYSPRO delivers the tools that empower you to manage this Materials, Costs and Cash “Triad.” When times are tough, 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, which 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 Materials, Costs and Cash become imperative to ensure ongoing success.
This is the first in a two part blog series, highlighting SYSPRO’s focus on the success of its customers. To summarize my thoughts in this first blog: getting back to the basics, focusing on the things that count, and applying a theory (where applicable) is key to success and longevity. Access to the tools to manage the Materials, Costs and Cash as well as having visibility and the metrics at hand to measure the operations, are the key elements for SME manufacturers and distributors to concentrate on, all made possible through the effective implementation of an ERP system like SYSPRO.

In my next blog I will discuss the evolution and revolution of technology in the SME mid-Market ERP space.

Are you looking to upgrade your current ERP system? Please do get in touch.

Topics: SYSPRO, managing costs, Business Strategy, Manufacturing, ERP, Inventory Optimization


Erin Schlee

Erin Schlee is a Marketing Specialist at SYSPRO, USA. She joined SYSPRO in early 2011. Her responsibilities include social media management, and developing product-based messaging and collateral to highlight the value proposition of the SYSPRO product.Erin attended the University of Southern California (USC) where she graduated with a BA degree in Communication, from the renowned Annenberg School of Communication.

Prior to joining SYSPRO, Erin was based at Tesla Motors, in the capacity of Regional Marketing Coordinator. Here she gained valuable experience in high-tech marketing, which prepared her for the ERP Industry.

Outside of the SYSPRO community, Erin is a member of several organizations, including TechAmerica Orange County, the Technology Council of Southern California, and the British-American Business Council.

In her free time, Erin is a volunteer for the Adopt-A-Family, and Raise Foundations. She also enjoys reading, writing, traveling.