3 Ways to Free Up Capital with an ERP


Capital is critical for any company. 60% of failed SMEs cite cash flow as a cause for going out of business (ForwardAI.com). When companies have more money to work with, they create new growth opportunities to strengthen their profits and their organizations. With the right ERP, you can free up capital so that your business expands. Managing inventory spending, decreasing operational costs, and maximizing real-time data are three of the best ways to free up capital with your ERP.

Inventory Spending

Inventory carrying costs are a complex issue and a major pain point for manufacturers and distributors. Determining the needed flow of inventory for releasing products on time without overinvesting capital is nuanced. With supply chain issues, it becomes even more important to develop a plan to stay lean on inventory while avoiding expensive rush deliveries. An ERP can forecast inventory requirements for future projects and continually monitor demand. With automatic notifications and reordering based on real-time stock levels, it becomes simple to stay on top of inventory replenishment. In addition, you can see reports on wastage and returns to identify problems in your system.

Operational Costs

An ERP system decreases operational costs by giving manufacturers greater efficiency. Tasks that were previously done manually can be automated during every part of the production process, allowing your workforce to spend their time on responsibilities that require their unique skillset. These can happen in a paperless environment, so supervisors can oversee shopfloor activities and operators at the same time. With so much information readily available from your ERP, it is also easier to answer client questions. If I client asks for historical data before moving forward with an order, for instance, your team can find the answer quickly rather than having to look through multiple systems. Operations becomes more effective overall, saving time and money.

Real-Time Data

Real-time data is invaluable for manufacturers. With real-time data, it is far easier to identify defects and stop production rapidly to avoid wasting money. In fact, supervisors can pre-emptively stop mistakes by monitoring for numbers that look off. Real-time data also allows you to optimize operations by understanding the cost of each step of production and finding the most affordable approach without minimizing quality. By sharing real-time data on the shop floor, you can decrease the number of slowdowns during the routing and execution of projects. Back-and-forth conversations about how things are going take up a lot of time during this phase, but ERP data will make these touchpoints a lot faster for everyone involved. 


With the right ERP, you can open up valuable capital to foster growth in your organization. However, every manufacturer and distributor faces their own pain points, so it can be difficult to choose the right ERP. Datix is here to help. With 25 years in the software solutions industry, Datix has extensive experience working with all the major manufacturing ERPs. We act as nonbiased consultants for our clients by finding the right ERP to meet their needs and coming up with an implementation plan to boost their profits.

Contact us to learn more about how Datix can solve your software challenges: https://datixinc.com/contact/

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