However, cost-cutting measures must meet certain conditions such as:
sustainable ,not to have negative effects on the company's future results.
effective ,the results obtained are superior to investments in applying the respective measures.
realistic ,that is, that company can implement them.
MANAGEMENT OF INTERNAL OPERATIONS
1. Implements an integrated solution
Integrated solutions bring together people and information flows within the company, ensuring accurate and secure data management, as well as real-time access to data. ERP is a system that centralizes all information in a single platform, providing access to any type of data and facilitating coordination and communication. Choosing an integrated ERP system reduces costs for:
Information is only entered once in a single database
Its components can cover a wide variety of activities, such as production, management, accounting, cost centers, budgets, logistics, etc.
It is flexible, allowing it to be tailored to the specifics of each business
It is a software-oriented flow and business process and optimization
It is scalable, that is, with the development of the company it allows the addition of
newadvanced modules and the reorganization of all business flows
2. Automates and standardizes business processes
Operations made manually and in an unorganized way are not at all effective, both in terms of time and the large number of employees they require, and the high probability of errors. Standardizing and automating business processes favors developing the company's business in the best possible conditions, increasing productivity, reducing the integration time of new employees, and giving managers a clearer picture of the business. Implementing the ERP system:
You can import nomenclatures with thousands of products and customers as well as price lists or discounts from external files with minimal effort
Generate subsequent documents, such as order notices, invoice notifications, etc., and the details are taken from one document to another
You set trade policies at
partneror product level, and when creating documents, prices and payment terms are calculated and automatically retrieved based on these
3. Improves the acquisition process
Communicating with suppliers is an extremely important part of your business. A faulty acquisition process will affect your business and customer relationships. Having an ERP system, you can first relate your sales to the acquisition. Thus, by analyzing the sales data available in ERP, you will be able to correctly dimension your future acquisitions.
In ERP you can generate purchase orders from sales orders through settings that establish links between specific products and their suppliers
The ERP system integrates EDI (Electronic Data Interchange) functionality that enables electronic document transfer in XML format. This is mainly used in the relationship with large commercial chains (IKA)
Through EDI technology, all purchase orders can be sent to vendors in XML format, resulting in significant time savings and reduced likelihood of errors
4. Follow the costs in detail
The ERP system allows you to set up spending budgets and track the actual costs within the desired limits. This way, you get a high control over the costs your business generates.
You can structure budgets in any way you want, taking into account geographical criteria (work points), departmental (production, sales, logistics etc.), types of expenses (energy, communications, rents, wages etc)
Finally, you look at the projected budget versus the executed or executed budgets, thus gaining high control over the financial parameters of your business
Increase the speed of your response, so that if you see overtaking, you can quickly take action and avoid budget imbalances
LOGISTIC LANGUAGE MANAGEMENT
5. Optimize stocks
Excess stock is definitely an important cost. Products must be stored under certain conditions and in the case of those with limited validity, once expired, they will no longer be sold and you will lose the invested money. Implementing an integrated ERP system with a
Based on the ERP sales order history, the stock optimization system predicts future demand and calculates statistically the optimal merchandise requirement to cover estimated sales
Then, depending on the existing stock, it proposes to purchase or transfer the products from other locations of the company, thus avoiding the risk of excess stock occurring. The system is able to handle multiple warehouses and locations, proposing the most suitable solutions so there is no under-or under-stock in any of these
Another benefit is that it allows you to group products according to certain features so you can check them in a shorter time, extremely useful functionality when working with stocks of thousands of items
6. Manage deposits more efficiently
Integrating the ERP system with a
facilitates the transfer of information between headquarters and warehouse. In addition, the WMS allows you to optimize the available space within the warehouse, with rent, staff
You have access to real-time information about stock movements, any changes in WMS being visible in ERP
Customer orders are automatically sent from ERP to the warehouse. This translates into significant time savings because employees have activity throughout the day as orders are received, as they would have to process them all at once
WMS gives you increased visibility on the placement of goods, making it easier for pickers to access them. Thus, new employees can become productive from the first day (no need for time to accommodate the warehouse, product lists, etc.), and
The system offers suggestions for arranging merchandise on the shelf, making optimal storage space
7. Controls the car park
The car park generates high costs, ranging from wages and driver records to fuel, revisions, insurances, or taxes. But besides these, the unforeseen costs, such as fines, repairs or spare parts, also occur. To control them more efficiently, you have at your disposal the AutoPlus module available in ERP:
It helps you easily identify any vehicle in your company
You can keep track of each car's activity: route, consumption, accidents, fines
Keep track of the lengths of unavailability of machines and identify their causes
8. Improves the sales process
Sales activity is basically revenue generating, but it also involves some costs that you can shrink through ERP, CRM, or SFA.
The CRM system is designed for customer relationship management and prospecting. It ensures the uniqueness of information about them at the company level. Having all the data in the same system, employees spend less time looking for them when interacting with them, no matter what department they are part
The sales process can be personalized according to the specifics of each customer, product or seller, which allows you to intervene more quickly when something does not work properly and you can correct it to ensure a shorter sales cycle
Field teams record all the documents and information collected from the field directly in the SFA and then transmit them through ERP synchronization, from which the subsequent sales documents are generated.
9. Choose an online store integrated with ERP
An effective cost-cutting method is to deploy an online store. Administration costs are much lower compared to a physical store, both in terms of rent, taxes or maintenance, as well as wages, because you will need fewer employees.
The online store is integrated with the
You can offer self-service to your customers at the online store, and so you can reduce the staffing needs of the support department
10. Improves the analysis and reporting process
Choosing an integrated Business Intelligence system with ERP gives you the ability to perform advanced analyzes even if you have no technical knowledge. The system is fully interactive and visual, and the graphs and analytics available to you allow you to get an overview of the costs your business generates.
The predictability of the BI system gives you the opportunity to see how your company's costs will evolve over the next period, from historical data