Myth #1: The Age of MRP Software does not have an Impact on the Benefits Derived

Myth: Companies that run MRP software receive many distinct and measurable operational benefits despite the age of the system.

Truth: While it is true that companies that run MRP software have many distinct and measurable operational benefits, there are distinct differences in operational benefits depending on the age of the system. A 2011 report shows that MRP software operates at its best between the two and seven year range. In fact, software that is between two and seven years old has almost 30% more reduction in costs than systems older than 15 years. In order to receive all of the operational benefits MRP software can provide, companies should replace their software every seven to ten years.

Myth #2: Cost Reductions are seen more often in Older MRP Software Solutions

Myth: Companies see more cost and inventory reductions the longer they have a MRP software system in place.

Truth: The largest cost and inventory reductions are seen within the first two years of the software’s life. In fact, inventory reduction is 25% greater in systems that are two years old than systems that are two to seven years old. Newer systems also see an improvement in time to decision and a reduction in administrative costs.

Myth #3: Companies can Achieve the Same Results with Older Software

Research shows that a key aspect to consider when comparing the age and performance of older MRP software is how it is being used and how often it is being used. Users with newer systems (less than two years old) use over 10% more module functions than the oldest MRP software users. Since most modules were not available 15 years ago, this makes sense. In fact, the following modules have only been available in the past 10 years:

• Human Resources
• Project Management
• Supplier Management
• Event Management
• Workflow Technology

Technology-specific modules, such as workflow and event management, are especially lacking in the older systems. However, less mainstream and more recent MRP software modules show significant disparity in areas such as project management, supplier management and human resources. These are areas that MRP software companies were just starting to offer 10 years ago and are just now perfecting.

Where Do You Buy Your Extensions?
40% of users of newer MRP software buy their extension applications directly from their software vendors, while users of the oldest systems are five times more likely to depend on third party vendors not associated with their particular MRP software. Why the disparity in how companies view MRP software extensions? There are several reasons:

• Greater availability of extensions from software vendors
• MRP software vendors consolidating the enterprise application market
• MRP software vendors release of messaging, integration and middleware systems
• Lack of on-going support for older, legacy MRP software

Myth #4: Older Software is Easier to Install than Newer, More Complex Software

An important aspect in a company’s decision-making process around MRP software strategies is the time it takes to get the system up and running. Newer systems take 30% less time from install to operation than the oldest systems (7 – 15 years old). Over the last 15 to 20 years, MRP software vendors, user companies and implementation partners have become more efficient in getting software up and running effectively.

As you can see, an older MRP software has several drawbacks. It limits the ability to extend functions through modules and extensions and slows the access to critical information for decision-makers. Not only do older systems require twice as much customization as newer systems, they are also 40% less likely to be tailored to the system without programming. This leads to higher IT support costs and more difficult system upgrades; in addition to the greater support and staffing levels already required for older systems.

By keeping your system current, your operational costs should improve between 3% and 5% for several years on average. If your system is currently between two and seven years old, limit customization and stay as current as possible in order to maintain those benefits.

So What Should a Company Operating Older MRP Software Do?
If your system is more than seven years old, you should consider implementing newer MRP software. Not only will you reap the benefits that a newer system has to offer, but you will also significantly reduce your manufacturing costs. Download your copy of “Aging ERP: When Old ERP is Too Old” now to discover the benefits your company could reap from a newer system.

Do you think this reduction is due mainly to the company’s focus on streamlining processes to work with the new MRP software or mainly the functionality of the new software?

If you’d like to read a real-world example of a client who achieved a more streamlined and efficient operation through the implementation of up-to-date MRP software, read our complimentary success story here!

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What Should Be Included in ‘Total Costs’?

The total costs, in this case, do not encompass the wide range of factors usually included in a total cost estimate. In this instance, total costs only include the total cost of software, services and maintenance per year. These services could include the implementation, training and any type of customization to the manufacturing business software.

When evaluating manufacturing business software and measuring their ROI, companies should keep in mind that true total cost includes hardware and infrastructure costs, internal costs, and continued care and support. While few companies fully understand and measure internal costs, these costs are crucial when calculating the ROI of manufacturing business software. Due to the fact that costs change as a company grows, the expected business benefits will vary from company to company.

How Does the Growth of a Company Affect the Total Costs?

As a company continues to grow and expand, the total cost of the software and services continues to rise. Therefore, companies that wish to take the manufacturing business software plunge should invest in the software as early as possible. Fortunately, companies wishing to make an investment in ERP are given a variety of options to do so.

While the total cost of software, services and maintenance increases as companies grow, the cost per user decreases as the company expands. Generally speaking, manufacturing business software vendors price the software by the number of users; however, users can be defined and priced in a variety of ways depending on the company.

The True Cost of Achieving Business Benefits

So far, we’ve only discussed TCO; however, cost without value is useless. You must also take the ROI of manufacturing business software into consideration to find the full value that it brings to a business. Often, the success of manufacturing business software is judged by the time, cost and effort to implement it. However, in order to find the full value, you must base its performance on specific Key Performance Indicators (KPIs) that measure both the value it brings to the company and the overall health of the company. The specific business benefits that can be obtained will vary depending on the goals of the company and the opportunity for improvement.

By expanding our view beyond TCO to include ROI, the following business benefits achieved through implementation can be considered:

• 16% reduction in inventory
• 19% reduction in operational costs
• 17% reduction in administrative costs
• 17% improvements in complete and on-time shipments

You might expect the manufacturing business software implementations that derive the best or most results to be the most expensive; however, you need to consider the total cost per user and other factors to determine the true price. If you divide the cost per user by the average percentage point of improvement, we will see the price decrease as performance increases.

The ability to quantify the results obtained through manufacturing business software implementations is critical in determining its success. Without the ability to measure and quantify savings and improvements, it will become difficult to justify the continued investment in both time and money to reach further improvements. Companies need to continually measure ROI after it has been achieved, not just initially. Continued measurement leads to continued business success and improvement.

While the total cost of ownership is important to monitor, focusing on TCO alone will not justify the time and money spent on a manufacturing business software investment. Companies must also focus on the ROI of these projects in order to justify continued investment and maximize benefits.

If you are currently considering making an investment in manufacturing business software or would like to fully utilize your current solution, measuring the TCO and ROI of your investment is key. Download your copy of “ERP: Is High ROI with Low TCO Possible?” now to discover how to properly measure the benefits and total costs of your manufacturing business software investment.

If you are ready to take action and need practical advice on the next steps toward reducing costs, click here to sign up for a free 30-minute business consultation.

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What Should Be Included in ‘Total Costs’?

The total costs, in this case, do not encompass the wide range of factors usually included in a total cost estimate. In this instance, total costs only include the total cost of software, services and maintenance per year. These services could include the implementation, training and any type of customization to the MRP software.

When evaluating MRP software and measuring their ROI, companies should keep in mind that true total cost includes hardware and infrastructure costs, internal costs, and continued care and support. While few companies fully understand and measure internal costs, these costs are crucial when calculating the ROI of MRP software. Due to the fact that costs change as a company grows, the expected business benefits will vary from company to company.

How Does the Growth of a Company Affect the Total Costs of MRP Software?

As a company continues to grow and expand, the total cost of the software and services continues to rise. Therefore, companies that wish to take the MRP software plunge should invest in the software as early as possible. Fortunately, companies wishing to make an investment in MRP software are given a variety of options to do so.

While the total cost of software, services and maintenance increases as companies grow, the cost per user decreases as the company expands. Generally speaking, MRP software vendors price the software by the number of users; however, users can be defined and priced in a variety of ways depending on the company.

The True Cost of Achieving Business Benefits

So far, we’ve only discussed TCO; however, cost without value is useless. You must also take the ROI of MRP software into consideration to find the full value that it brings to a business. Often, the success of MRP software is judged by the time, cost and effort to implement it. However, in order to find the full value, you must base its performance on specific Key Performance Indicators (KPIs) that measure both the value it brings to the company and the overall health of the company. The specific business benefits that can be obtained will vary depending on the goals of the company and the opportunity for improvement.

By expanding our view beyond TCO to include ROI, the following business benefits achieved through implementation can be considered:

• 16% reduction in inventory
• 19% reduction in operational costs
• 17% reduction in administrative costs
• 17% improvements in complete and on-time shipments

You might expect the MRP software implementations that derive the best or most results to be the most expensive; however, you need to consider the total cost per user and other factors to determine the true price. If you divide the cost per user by the average percentage point of improvement, we will see the price decrease as performance increases.

The ability to quantify the results obtained through MRP software implementations is critical in determining its success. Without the ability to measure and quantify savings and improvements, it will become difficult to justify the continued investment in both time and money to reach further improvements. Companies need to continually measure ROI after it has been achieved, not just initially. Continued measurement leads to continued business success and improvement.

While the total cost of ownership is important to monitor, focusing on TCO alone will not justify the time and money spent on a MRP software investment. Companies must also focus on the ROI of these projects in order to justify continued investment and maximize benefits.

If you are currently considering making an investment in MRP software or would like to fully utilize your current solution, measuring the TCO and ROI of your investment is key. Download your copy of “How to Choose a Manufacturing System” now to learn more about choosing the right MRP software for your company.

Additionally, you may be interested in reading a real world example how our client, Cord Sets, saved over 500 man hours a year by utilizing the capabilities of Sage Pro ERP. Download this complimentary success story here!

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1. Determine Your Company’s Goals and Challenges
It is safe to say that current economic conditions are a significant challenge for businesses of any size. Smaller companies, however, do not cite it as their top challenge. Focused on creating a name for themselves, smaller manufacturing companies are most challenged with brand awareness and market exposure. While larger manufacturing companies struggle with the increase of competition within the market, employee retention and rising operating costs, the current economy remains their greatest challenge.

The overall goals and challenges of a business impact a company’s MRP strategy. Smaller companies tend to be more focused with the market and customer awareness while larger companies focus on costs and managing the growth of their organization. These concerns contribute to the development of the all-important MRP strategy. Small and medium-sized companies look to MRP systems to manage and drive their cost position, while preparing for future growth. Smaller companies also look to MRP systems to manage their operations; however, they place a higher priority on the customer experience.

2. Focus on Reducing Costs
While small and large manufacturing companies have different challenges that create distinctive MRP strategies, cost reduction is still the main driver of successful MRP strategies. As a result, manufacturing companies must focus their MRP strategies on business process execution. The strongest MRP strategies are developed by companies wishing to:

• Streamline and accelerate processes to improve efficiency and productivity
• Standardize business processes
• Provide visibility to business processes across functions and departments
• Optimize the use of current capacity
• Link global operations to improve interoperability and collaboration

3. Take an Integrated Approach
MRP is not a “one-size-fits-all” type of business management system. Every manufacturing company comes with its own unique sets of needs and standards, and a strong MRP strategy should meet the unique needs of each company. For that reason, many companies are turning to a multi-tiered MRP strategy in order to operate to their full capacity. In fact, recent research has shown that significant benefits can be gained from an integrated ERP solution.

Manufacturing companies who take an integrated approach to MRP are 3.4 times more likely to report a reduction in operational costs than companies who run a “one-size-fits-all” model. They are also 85% more likely to report a reduction in inventory costs and 2.6 times as likely to report an increase in profit.

Benefits of Developing Your Own MRP Strategy
The ongoing success of an MRP system and its contribution to the success of a manufacturing company is dependent upon the overall MRP strategy (not just the MRP implementation). Companies must take the time to set guidelines for how they define, monitor, support and apply their MRP system. Companies that maintain their MRP strategy and align that strategy with their overall business strategy, internal capabilities and business needs derive real operational benefits. Successful manufacturing companies monitor and measure not only their business operations, but they also monitor their MRP system and how it is performing and aligning with the business. With the proper strategy, MRP will bring greater visibility, lower manufacturing costs, reduced inventory and improved efficiency to any manufacturing company.

If you are currently considering making an MRP investment or would like to fully utilize your current MRP solution, developing an MRP strategy is key. Download your copy of “ERP in Manufacturing 2011: Defining the ERP Strategy” now for tips on developing a strategy that will help you lower manufacturing costs and improve your overall operational efficiency.

If you are ready to take action and need practical advice on the next steps toward reducing costs, click here to sign up for a free 30-minute business consultation.

Do you currently use MRP software to manage your business? If so, do you have additional suggestions for ways to reduce manufacturing costs using MRP software?

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In this example, we set-up an account 11100 (Liquid Assets) as a Begin-Total and account 11700 (Liquid Assets, Total) as the End-Total.  In account 11700 we added a formula (11100..11700).  This totals all the accounts from 11100 through 11700.  You can also use the pipe symbol (use shift \ to get |) to add up specific accounts.  For example, 11400|11600 would add just these two accounts together. 

Personally, I like to put formulas into my Chart of Accounts rather than on the Account Schedule, because not only can I see total, but also, if I add an account in the 11100 to 11700 range it will automatically be included in my total cash.  Then, I put the totaling accounts on the Account Schedule without formulas.

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The first way to approach efficient warehousing is to automate manual processes. This is also the easiest way. This method allows you to maintain your current processes and still realize significant improvements to your bottom line. Simply automating current processes with barcode readers and software, manufacturers and distributors can dramatically increase the accuracy of inventory and order shipments.

Before wireless mobile computing, warehouse personnel communicated inventory movement with paper, pencil and data entry at a stationary warehouse terminal. Instead of carrying around paper and a pencil, warehouse staff can be equipped with PDA’s to record functions performed in the warehouse. Simply “mirroring” current processes with wireless PDA devices is really about going paperless. Going paperless has many benefits to your bottom line, including:

Better data for the enterprise

• One time data entry – Rather than handling data twice (pencil and paper, then data entry into the terminal), scanning facilitates data entry when warehouse activities are performed.
• Efficient data entry – Scanning barcodes is much more efficient than writing data on a piece of paper. Technology can eliminate the time required for data entry, sending paper orders to the warehouse, searching for misplaced paperwork, filing, and maintaining paper documentation. This alone can result in significantly increased efficiency and cost savings both in labor and paper-related expenses.
• Accurate data entry – Scanning barcodes eliminates data entry errors. Furthermore, every step through the warehouse can be interactively verified using barcode and RF (radio frequency) technology. This ensures a high level of accuracy in filling orders, product check‐in, putting away products into the correct locations, and accurate replenishment of pick‐bins. Increased accuracy can virtually eliminate costs associated with shipping, receiving and inventory errors.
• Timely information and integration of warehouse data into the ERP System – When your staff captures data as they work, the system can provide real time information back to the enterprise. At a minimum, the warehouse solution requires software that allows sales/work orders, purchase orders and inventory information to flow seamlessly between the warehouse and ERP system while your workers perform their work. Electronic data transfer between the warehouse and ERP system ensures timely and accurate data for invoicing, purchase order payment and inventory tracking and management, all without manual keyboard data entry.

Optimized inventory management

• Improved inventory accuracy ‐ Inventory carrying costs have an important effect on business viability. Inventory accuracy can reach approximately 99.9% when inventory is tracked using barcodes and RF handheld inventory functions. Scanning and validating locations and product barcodes ensures inventory accuracy.
• Reduce your safety stock ‐ With the higher levels of inventory accuracy, a business can expect to diminish the quantities of required stock on hand and the carrying costs of that extra inventory, while at the same time maintaining adequate stock levels to fulfill orders.
• Improve inventory counting efficiency ‐ Warehouse software should facilitate ongoing cycle counts, reconciled with financial data in real‐time. This is an enormous benefit to the warehouse because the warehouse does not need to shut down operations. Performing regular cycle counts reduces the frequency requirement of full inventory counts and the cost associated with closing down the warehouse and the additional staff needed to perform the count.

Improved warehouse efficiency

• Eliminate searching for lost products ‐ Wireless devices can accurately direct the order fulfillment process by ensuring that pickers travel to the correct pick–bin locations. Scanning and validating locations and quantities eliminate searching for product and ensures accuracy.
• Reduce picker walk time ‐ The typical warehouse solution sequences item picking to minimize walk time throughout the warehouse thereby reducing travel time, even if your business system does not support bin locations.
• Monitor warehouse activity and order status in real‐time ‐ Using real‐time wireless data collection equipment and software to record and store activity records in a database, a warehouse solution can provide visibility into your companies warehouse productivity, activity and trends. This visibility can be on‐line, presented in real‐time or through reporting that looks at both current and historic data. Effective use of the data can positively affect the warehouse’s ability to forecast resource requirements, recognize and remedy productivity problems, track errors and monitor customer issues.

Improved customer service

• Improve your service level ‐ Technology can significantly reduce you order fulfillment time. Many companies need to improve cycle time to meet customer’s growing expectations for same day, or rapid shipment.
• Eliminate order shipment errors ‐ Reducing errors in order fulfillment and shipping not only lowers the monetary cost of errors, but keeps customer satisfaction and return business levels high. You can achieve order accuracy of 99.9%.
• Improve your fill rate ‐ The ability to fill orders completely, thanks to an accurate, automated inventory management facility lets you keep those sales. You will not lose customers because you cannot fill their orders.
• Provide your customers with improved visibility ‐ Keep your customers updated with real‐time information about order status. This information is always available to your customer service staff, on‐request and immediately.
• Meet tough customer demands ‐ A customer like Wal‐Mart can be very demanding. You can use a system to facilitate compliance requirements such as adopting specific labeling, or tracking lot and serial numbers. Using a solution like a WMS (warehouse management system) can automate compliance with greater ease and cost‐efficiency.

If you’d like more information about going paperless by implementing a bar-coding system, we have developed several tools just for you:

• Our white paper ‘A Guide to Investing in an Inventory Management System’ is a great first step. It will help you identify the areas in which you can save time and reduce costs regardless of industry size or type, as well as provide specific information on what to consider when selecting an Inventory Management System. Download yours here.
• To find out what the Return on Investment would be by implementing a Warehouse Management bar-coding system, take our Return-On-Investment Assessment

Additionally, if you’d like to see an example of real-life efficiencies provided by a warehouse management system – click here.

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1. Auto-Invoice out of your ERP. Emailing invoices to your customers seems easier but that process can be almost as time consuming as physically mailing the invoices. ERP systems, like Sage Accpac ERP and Microsoft Dynamics NAV, give you the ability to automatically email all invoices to your customers when you post. Build in automatic email reminders as the due date approaches and you will save yourself hours of phone calls.

2. Process credit cards within your ERP system. Accepting credit cards has become more complex with the introduction of the PCI Security Standards but your Sage Pro, Accpac on NAV ERP system is already outfitted with tools to ensure your compliance, including Sage ERP Accpac. Simply enter the credit card information into your ERP then receive notification of approval or denial. Many systems have the option to automatically show the receipt of funds in your ERP once they arrive in your account.

3. Accept checks by phone. Paper checks account for 1/3 of non-cash payments according to the Federal Reserve but they also take the longest to arrive. Shorten that time by getting the pertinent information over the phone as soon as the check is issued. This gives value to your clients by making the payment process easier and can significantly reduce the time it takes for you to receive money owed.

4. Scan in checks for immediate deposit. Getting to the bank can be difficult in the course of a busy day. You can easily outfit your accounts receivable department with a small reader that authorizes the check online then immediately deposits the money into your account.

5. Accept ACH payments. The Automatic Clearing House (ACH) is a U.S. Government run system that allows money to be electronically transferred from one bank to another through an Electronic Funds Transfer (EFT). Accepting ACH payments eliminates the delay of the “next check run” and allows you to collect payment the day it is due.

Receiving payments owed allows you to operate properly and make necessary investments in equipment or staff to keep your company growing. Technology can be a powerful driver in increased receivables without much user intervention. To find out what accelerated cash flow could mean to your company’s bottom-line, contact us today.

To read how we helped a client save an estimated $100,000 a year by configuring their ERP application to maximize efficiency, click here.

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Computers promise us all the data we need to make decisions on a timely basis. Do you believe that to be true? If you are like me, you don’t. We all have more data than we know what to do with. Too many times reports just flood us with unnecessary information that obscures what we really need to see.

So why the disconnect? There are many reasons. We won’t go into all of them, but consider these. Programmers, who have only a vague idea of what you need to see, write most computer software. For example, do you really want to see 150 pages of an accounts receivable report? You probably want to see one of two things: 1) Are my customers paying on a timely basis? 2) Who owes me money and is late on paying?

Alternatively, let’s consider an inventory report. You probably want to see the total value of your inventory. You could print the whole inventory valuation report – or you could have a dashboard that shows the total dollars, but also ages the value so that you see the value of inventory that is new, aged a little and ancient – a better tool to evaluate your inventory position. On the other hand, perhaps you want to see the split between raw materials, components and finished goods. A simple dashboard gives you this at a glance.

Computers are good at spitting out data based reports. They have not been as good at distilling data into actionable information that alerts you to up-coming problems. As a result, there has been a great deal of industry talk and development around Dashboards and Business Intelligence of late. These products are the software industry’s attempts to respond to the dearth of actionable information.

How does this affect you? Well, that’s why I am writing this article. Think about driving your car for a moment. Do you need to know how many ounces of gasoline are in your tank? You probably don’t care. You have a gas gauge that tells you the general status of your gas supply. In addition, you probably have a light that comes on when you are down to the last two gallons. If that’s not enough, an electronic sound chimes at the same time. Why the light and a sound? You have a gas gauge. Shouldn’t that be enough? You know the answer. We get busy. We are thinking about something else. (Oh, we are focused on driving, aren’t we?) We need a reminder so we don’t get stranded. Software Dashboards fill a similar need.

Next week’s focus: learn how a dashboard can create action faster within your company.

To learn more on the numerous benefits of Business Intelligence Dashboards, click below to receive our complimentary whitepaper directly to your in-box.

“How to Make Business Intelligence Pay”

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Consider our Accounts Receivable illustration.You have an Aged AR report – sort of like knowing how many ounces of gas are in your tank. In addition, you probably have an overdue report – similar to your gas gauge. However, hundreds or thousands of individual invoices make up your receivables total; and, each one is approaching an early pay discount date or a due date (or more frustrating, long past a due date). That is the first sign that you may have a problem. Perhaps the customer’s average days to pay is 10, to take advantage of your early pay discount. What would the impact be if your business system notified your collections or sales staff when an invoice went past the customer’s average days to pay threshold? This might be a 20-day jump on a potential problem. Perhaps there is a problem with that invoice. Do you want someone to act to determine if there is an issue? Probably not, if it is a small invoice, but you may want someone to take action if it is a larger invoice. Consider this as an example of a production type alert or dashboard.

Taking that a step further, how about an AR Management Dashboard? You know what numbers the bank or your CEO wants for total dollars and aged AR. If your accounting manager, controller or CFO has a dashboard that displays just those numbers, he or she will quickly spot positive or negative trends without running and analyzing several reports. Generally, what happens is that you need more information and by the time you know it, the baseline has changed and you have to rerun all the reports so they have the same starting point. With a Dashboard, all it takes is a quick glance – or an email when something exceeds a threshold – and action can start.

Okay, what about top management? Here is where we need the flashing light. These AR numbers probably should not be on the CEO’s dashboard (there are too many other areas of concern). However, if a problem starts appearing, it might be appropriate to have an advance warning before a small grass fire turns into a raging forest fire.

So, why a Dashboard? Because, it is the one place to get an instant view of your business health, just as your car’s dashboard provides you an up-to-date view of your car’s status. It isn’t the only source of information, but it provides you status updates on the critical components your ERP or CRM system can measure. Can it tell you if your engineering department is having a problem with a new product design? Theoretically, yes. Practically, probably not. Will it tell you the maintenance status of the forklift in your warehouse? It could, but first, let’s focus on the things that are immediately measurable within your ERP or CRM system.

Read Part 3 of this Series…

For more information regarding the numerous benefits of Business Intelligence, click the button below to receive our complimentary whitepaper.

“How to Make Business Intelligence Pay”

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Short List – I don’t know what is important to you, but here are a few things that others have told me are important to them.

Inventory

• Age – what products am I holding that are getting old; close to expiry dates
• Too much – what products am I holding that I have more than ** weeks (you supply the number based on the product, lead-time, minimum order, etc.) supply when comparing on-hand to regular sales
• Too little – what products am I holding that I have less than ** weeks (you supply the number based on the product, lead time, minimum order, etc.) supply when comparing on-hand to regular sales; or I promised a customer X quantity on hand at all times
• Total valuation – too high or low
• Category valuation – too high or low

Sales

• Margin – too low (or high – yes, margin can be too high – you might be losing sales)
• On-time shipments – shipping too soon (delayed cash flow), shipping too late (customer dissatisfaction)
• What’s selling – what categories or products are headed up in dollars, units or both
• What’s not selling – what categories or products are decreasing in dollars, units or both
• Who is buying – whose sales are headed up; which categories are headed up (down)
• Who is not buying – whose sales are headed down; what categories are headed down (or up)

Purchasing

• Cost changes – too high or low (too low – is quality deteriorating, buying aged product, buying something else that will sit on the shelf)
• On-time shipments – shipping too soon (impaired cash flow), shipping too late (customer dissatisfaction)
• Order size – too big or too small
• Vendor purchase changes – category, items or total – what is the impact on vendor contracts or relationships? Is there a problem with a buyer, a salesperson, a customer or the vendor
• Whose inventory matches targets – training for purchasing, more visibility of “right level” of inventory, too many products or relationships to manage well
• What do I need to buy

Sales & Marketing Staff

• Activity level by salesperson – too little, not properly balanced
• Pipeline – too small, too big (not properly qualified or big surge in business coming), too far out
• Prospects – not enough, not balanced, too many (can’t follow up on all of them)
• Lead analysis – status of leads

Read part four in this series…

For more information regarding the numerous benefits of Business Intelligence, click the button below to receive our complimentary whitepaper.

“How to Make Business Inteligence Pay”

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