Increasing Your Company’s Financial Health Visibility

March 07, 2017
by Wipfli Manufacturing Technology Team
Manufacturing and Distribution
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Starting out, discrete manufacturers can generally stay on top of their numbers, trends and strategies with basic accounting tools, and key decisions generally fall to one person or a small group of executives. As the business grows so do the financial and administrative responsibilities, and assigned teams take over data management across the enterprise and supply chain.

Growth is good, but it also complicates communication and business planning, and clouds organizational visibility. The once-trusted entry level accounting software can no longer produce and disseminate data in a timely manner to every person who needs it to make actionable and profitable business decisions. What now?

Enterprise resource planning (ERP) is the answer. ERP systems like Microsoft Dynamics provide full financial health visibility into cash flow based on real time data gathered across the enterprise and supply chain. Financial management can occur anywhere, anytime with an ERP system, improving several key capabilities for discrete manufacturers including:

  • Decision making: Centralizing information through an ERP system instead of relying on separate spreadsheets or systems provides data uniformity and simplified reporting. Key decision makers across all departments are using the same information in the same, shared format to develop strategies that maximize performance across the organization and support investment choices while simultaneously managing—and minimizing—risk.
  • Collaboration: Problem solving doesn’t begin and end with monitoring and reporting. Discrete manufacturers must navigate the sometimes complicated relationship between finance and supply chain. Maintaining that balance requires marketing, sales, new product development, manufacturing, procurement and finance working together to gain an understanding of certain economic vulnerabilities, uncover inefficiencies, and commit to solutions that move toward informed processes and higher profitability. Focused metrics through an ERP system carve out mutual goals.
  • Integration: An ERP system creates consistency across the supply chain and the enterprise. In turn, that consistency provides a better and more accurate snapshot of how the various areas within a discrete manufacturing business model impact one another—production, quoting, accounts receivable, purchasing, receiving, etc. This holistic accountability debunks “silo thinking” and narrow goal setting, supporting the company’s overall financial health.

An ERP system promotes and leverages organizational visibility that ultimately aligns business strategies with operational competencies and goals—a true value-add for discrete manufacturers.

Contact us today for more information on how an ERP system like Microsoft Dynamics can benefit your manufacturing business.


 

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