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Businesses Increase Profitability Through Proper Supply Chain and Material Planning

Supply chain and material planning is one of the most important aspects to guaranteeing that a business is profitable, or even in business. Companies who do not control their material, inventory or distribution costs will quickly spiral expenses and liabilities until they can no longer stay in business.

Software solves many of the material planning problems for small to medium size businesses, but software still needs people and a process to support it. If employees and management are not trained on supply chain software, the software will do little good. Training and implementation of good software will decrease costs associated with materials problems.

When the software is implemented and integrated in such a way that staff can use it, it can substantially impact and increase your profitability. There are many specific solutions that organizations can piecemeal together. You might use an accounting system, and inventory system and barcode system, Excel and some custom code.  But this is very cumbersome. For small to medium-sized businesses, the best approach is an integrated Enterprise Resource Planning (ERP) suite.

An ERP will integrate programs and applications to ensure seamless information and communication across inventory, supply chain management, material planning, marketing and sales, delivery and distribution. The seamless integration across a business makes an ERP the most sensible way to cut costs and invest a employees’ time building product and acquiring and keeping customers, rather that building tracking systems.

With the right software and training processes, a business can manage the costs of materials, materials lost and materials used in re-works. Managing costs increases profits. Supply chain management also can decrease delays in production and increase employees’ efficiency. Communication and information concerning materials and inventory down-the-line gives management the ability to circumvent potential problems and delays before they happen, and increases efficiency using Just-In-Time Inventory processes.

Long Business Systems, Inc. (LBSI) offers planning, training, and implementation on the SAP Business One software platform for Small to Medium-Sized Businesses. Our training and process can save you money by decreasing costs, please feel free to contact us for more information.


Contact: Scott Long  Phone: 877-605-5274 x111  email: scott@lbsi.com      www.lbsi.com