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

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.

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This entry was posted in Business Strategy and tagged , , , , by Harold Katz. Bookmark the permalink.

About Harold Katz

I am currently the Head of Marketing at SYSPRO USA, where I joined the company in 2002. I lead SYSPRO’s marketing efforts, where I provide feedback on technological enhancements, and assist SYSPRO customers with identifying technology enablers to achieve exponential competitive advantages. I am presently involved in general operations, the development and effective rollout of SYSPRO marketing plans – providing consulting expertise to SYSPRO premier end-user accounts. I have a passion for technology and a drive to apply technology to business, to derive leveraged benefits. My career has spanned two decades, where I have held the positions of: Programmer, Systems Analyst, Operations Manager, Chief Financial/ Information Officer, and CEO of a publicly listed company. Having worked in and around mid-market businesses my entire career, I identify with the shared common goal of these unique businesses: How to apply technology to achieve new levels of efficiency. I strongly believe in the concept of planning and forecasting effectively at the front-end, to ensure the effective application of manufacturing and distribution principles downstream in the supply chain.

One thought on “Leveraging Your ERP System to Manage Materials, Costs and Cash Part 1

  1. Pingback: SYSPRO Quantum Architecture –Business Management of Material, Costs and Cash –Part 2 | SYSPRO

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