Improving you cash flow through ERP

Posted on Apr 4, 2013 | 0 comments

Every business owner wishes that there are more funds to use for the business. There is nothing wrong with the business and it is not failing to succeed but the problem lies with the poor cash-flow. You may blame your clients for not paying their invoices when they are due but do not fret. There are still numerous ways to improve your business’s cash flow. One of the best methods that you can use is Enterprise Resource Planning (ERP) system. Here are 2 ways on how ERP can bring increased cash flow to your business.

Inventory

There are two types of business that hold stock. The first, but not always the superior, ones that hold just enough of what they think they need but often run out and there are those that carry more than they really need but often tie up all their capital. Your business should be in the middle. You either have to have just enough so you don’t run out and not too much to tie up with your capital and lose any usable funds for other items. There are techniques that you can use to improve your inventory management such as the designation of a minimum and maximum amount of stock levels, auto re-ordering processes once stocks reach a certain level and latest trends and information in which your business will be affected.

Sales Management

Running your business should not end when you have already made sales. There should be a relationship established and it is your job to ensure that that remains strong. Create a system wherein you’ll see who have communicated, made transactions and provided services to each client that comes across your business. Keeping a detailed history of your every client enables your teams to see where things can be improved and for them to ensure that each order of transaction is executed properly.

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