For today’s CFO, knowing how the production process is performing is important. Identifying its strengths and weaknesses can help you provide products and services your customers consider valuable.
The savvy CFO constantly asks questions to make production more cost-effective. Where can we create better efficiency? How can we create value that ultimately delights our customers?
Additionally, they use best-in-class ERP platforms, like Sage Intacct, to find answers and make confident, long-term decisions.
To make your operations run efficiently, there are key metrics to track:
Inventory and Purchasing
Optimizing your inventory is about matching your organization’s supply with demand. If you have too much supply, that’s extra money you can better allot elsewhere. However, it’s essential to have sufficient inventory. Find that happy medium. Additionally, constantly track the costs and profitability of your products and services.
Joe Giorgio, Manager of Sage Intacct Implementations at Carlson Management Consulting, specifies how you can better manage inventory costs with Sage Intacct Purchasing:
“With Sage Intacct Purchasing, you can track the goods and services you are buying from individuals or groups of vendors. This, in turn, allows you to analyze the average costs of certain common goods or services. You can then use that analysis to negotiate better rates with existing or new vendors. You can also add on the Spend Control module to verify you are not overspending on certain GL categories or with certain vendors.”
How do these benefits translate into better value for your customers? Giorgio answers, “Using the purchasing module and spend control to manage your expenses allows you to keep your pricing consistent or even offer discounts to your customers.”
Invoices and Accounts Payable
As you may have experienced, keeping track of invoices requires much time and energy. There are many KPIs when measuring Accounts Payable. When you factor in all that’s involved with processing one invoice, the costs can add up.
Calculate how long it takes to process an invoice, and you get an understanding of productivity. You can also determine which suppliers are worth the investment. Invoice validation is also a lengthy task, so developing a smart system can save you time.
Giorgio shared how Sage Intacct helps you develop a smart system that saves you time: “With Sage Intacct, you can manage purchase requests, purchase orders, and vendor invoices in one easy-to-use platform. Organization-wide, you can collaborate to create and send purchase requests and orders, thus creating productivity and efficiency for your finance team as it sends invoices without duplicate entry.”
Project and Process Management
Effective project management is instrumental to the growth of your organization. Are your project deliverables achieving benchmark goals? It’s crucial that projects finish on budget and on time, so your operations run efficiently.
With these analytics, you can make informed decisions regarding your value chain and organization. Operational and financial data give you real-time insights into performance. This analysis allows you to take action that elevates product and service quality, and provides tremendous value for customers.
Giorgio gives his insights on Sage Intacct’s detailed analytics and new approval flow for project management:
“Sage Intacct has recently added a new approval flow. You now benefit from an approval process for the entry of AP bills. This approval process reviews your entries to ensure accuracy of coding.
The accuracy of Sage Intacct’s coding is essential to proper project management. As you enter expense codes for specific projects, you can then review reports that show profitability by project. You can also categorize projects by types to compare profitability between similar, or different groups of, projects. With these analytics, you can identify profitable projects and make improvements to projects that have expenses exceeding revenues.”
If you have questions about how Sage Intacct helps elevate your production process, please contact us for a consultation.