By now most CFOs, accounting professionals, and others involved in resource tracking are well aware of Microsoft Dynamics. Unfortunately, many businesses use it as little more than a glorified ledger, failing to take advantage of some of its capabilities. Similarly, some companies fail to integrate ERP software with internal company culture, taking advantage of the technological abilities but not the systemic advantages that can come with it.
A recent white paper released by the ERP Software Blog offers 25 examples of businesses that are using Dynamics to pull ahead of their competitors. Here are a few examples borrowed from the paper.
1. Negotiating Prices
We don’t typically think of price negotiation and resource tracking as being tightly linked aspects of business, but an office supply distributor proved that they certainly could be. They noticed that they were seeing wild fluctuations in profit, and realized that this was the result of volatility in inventory prices.
A big issue they came across was substitutions being made by salespeople. During price negotiation, sellers would often substitute one product for another of the same price. This tactic was a good way to meet customer demands more effectively and improve sales. But what most of the salespeople didn’t realize was that some of these items had lower profit margins. While they were selling a different item at the same price, they were actually losing profit for the business.
After successfully employing Dynamics ERP, the company was able to keep salespeople promptly and accurately informed about the profit margins, and how they were changing over time. By incorporating Dynamics into company culture, they were able to eliminate the sales profit volatility and increase overall profit.
2. A Digital Whiteboard
Manufacturers typically use a whiteboard to keep assembly line workers informed about which products need to be made in which quantity each day, and to notify them when sudden changes come up. This means that supply and demand need to be constantly monitored, and then each factory or work station needs to be manually informed about which parts need to be produced in what quantity.
This system seemed hopelessly out of date to a truck parts manufacturer, and they were right. The manufacturer used Microsoft GP financials to create a real-time digital whiteboard, so that these demands could be set automatically or with a single click, instantly notifying all the people who needed to know the information.
3. Better Quality Control
A food manufacturer’s quality control manager was finding himself spending more and more time managing data in Excel spreadsheets as the company grew in size. Quality control, crucial for regulatory compliance and customer satisfaction in the food industry, was starting to look like a side-chore, while managing Excel sheets was starting to look like his core business function.
Implementing Dynamics allowed him to get back to quality control by taking over the busy work for him. Dynamics made it possible for all the necessary information to be collected and compiled through the same interface. The QC information was immediately made available to everybody who needed it for invoices, consolidated reports, and prints.
In short, businesses that understand how to implement ERP software can pull ahead of the competition with creative solutions that go beyond simple resource tracking. If you would like to see the full white paper, take a look at 25 Brilliant Ideas to Outsmart Your Competition with Microsoft Dynamics ERP at www.erpsoftwareblog.com/brilliant-erp. Download as a PDF or Audio MP3 file.
By Anya Ciecierski, CAL Business Solutions, www.calszone.com, Guest Blogger for Accounting-Software-Blog.com