This is the final post in our five-part series 5 Tips for a More Dynamics Supply Chain. In our previous posts we looked at how to avoid a disruption in your supply chain, how to share ideas, how to turn big data into insight and how to embrace change.Today we’ll look at following actuals, not averages.
Keeping tabs on your company’s supply chain is no small task. Depending on your business, you may have hundreds, if not thousands, of bits of data whirling by as materials come in the door and finished goods go out. You need an efficient system that can automate processes and keep you informed with accurate and easy-to-access data.
Follow Actuals, Not Averages.
It’s necessary to be able to track costs through your supply chain to get a true sense of what it takes to turn raw materials into delivered product. However, without the right tools it can be difficult, if not impossible. Traditional approaches to creating and tracking this total landed cost are often based on estimates of numerous individual costs that make up your total. As a result, your total costs may be inaccurate.
Getting a real look into costs lets you make educated adjustments to pricing, marketing and sales, which has real impact on profitability.
An enterprise resource planning (ERP) solution like Microsoft Dynamics ERP lets you track landed, standard and perpetual costs. With Dynamics GP you have a more accurate view of every product that leaves your facility. From your standard reports, you can drill down to more specific details like costs by warehouse location.
In addition, Microsoft Dynamics GP lets you connect your supply chain, financial management, sales and marketing functions, so you can run item-by-item profitability analysis across your supply chain. This ability will help your sales teams and marketers prioritize the products, locations and types of customers that deliver the greatest profitability.
Microsoft Dynamics ERP also provides better audit trails for tracking cost adjustments. You can, ensure changes are recorded, tracked and fed directly into your financial management process.
We hope you enjoyed this five-part blog series designed to identify strategies small- and mid-sized businesses can embrace to make their supply chain simpler, smarter and more profitable. Learn more by contacting The Resource Group.