Articles

Purchase Order: A Comprehensive Guide

Posted on May 14, 2024May 14, 2024 by forceintellect

Purchase Order is a crucial document to ensure the procurement of goods exactly as per the requirements of the company. A purchase order is a contract between the buyer and seller and proves to be a legal document for reference in case of any discrepancies or disputes in the goods exchanged. In this article, we will cover all aspects right from what is a purchase order, who prepares it, what information it contains, why is it significant, and how to generate the purchase electronically via ERP software. What is a Purchase Order (PO)? A Purchase Order popularly referred...

Implement Monitoring and Controlling to Increase Efficiency in Manufacturing

Posted on April 24, 2024April 24, 2024 by forceintellect

Implement Monitoring and Controlling to Increase Efficiency in Manufacturing Manufacturing companies must focus on operational efficiency to ensure optimum utilization of resources, improve productivity & maximize profitability. Closely monitoring and controlling performance, plays a very important role, as it helps ensure continuous improvement to achieve the above-mentioned objectives. Monitoring helps you to know where the present state of a business function is as compared to a standard or planned one. Controlling involves corrective measures taken to bring that business function ...

Significance of Production Cost Sheet in Manufacturing

Posted on April 16, 2024 by forceintellect

Production Cost Sheet Significance in Manufacturing Profitability and success of a manufacturing business depends on how efficiently they can produce quality goods at economic costs. Production Cost Sheet is an important means to understand exact production cost & make informed decisions to implement cost saving measures. In this article, we will start with importance of calculating production costs, discuss what is production cost sheet, understand the challenges faced in preparing a cost sheet, highlight the benefits of preparing production costs sheet for manufacturing companies. W...

Material Inward Process and Significance of Proper record-keeping

Posted on April 8, 2024April 8, 2024 by forceintellect

Material Inward Process & Significance of Proper record-keeping The material inward process also known as the receiving process, involves the receipt of materials, inspection of the quality of materials received, and recording the incoming materials. It plays a crucial role in ensuring the right quality of materials are available for production at the right time. When the material inward process works like a well-oiled machine, it guarantees smooth production & enables timely deliveries for a manufacturing company. In this article, we will understand the material inward process...

Preventing Revenue Leakages in Manufacturing with ERP

Posted on April 1, 2024April 24, 2024 by forceintellect

Prevent Revenue Leakages in Manufacturing with ERP Revenue Leakages refers to the unintended loss of potential income or profit in a manufacturing company. Revenue leakages are invisible holes in the manufacturing industry. They are not visible in general, but create a big hole in profitability. Revenue Leaks occur primarily due to reasons such as manual processes, data present in silos across departments & locations, poor visibility, and inadequate control over key business areas. This may result in errors, oversights, non-compliance, chances of theft & fraud – all of which can l...

How to Create More Business Visibility in a Manufacturing Business?

Posted on July 15, 2023July 15, 2023 by forceintellect

How to Create More Business Visibility in a Manufacturing Business? Manufacturing companies must have a clear visibility of their operations and processes. Good visibility provides the ability to ensure timely procurement, right inventory, smooth production, efficient supply chain process and gain a competitive edge. In this article, we will discuss what is visibility in manufacturing, its significance, areas that require maximum visibility, and how ERP system can help achieve improved visibility. What is visibility in a manufacturing business? Visibility means the ability to capture rea...

Purchase Best Practices for Manufacturing Companies

Posted on June 16, 2023June 16, 2023 by forceintellect

Purchase Best Practices for Manufacturing Companies Purchase or Procurement expenses comprise a sizeable chunk - sometime even up to 60% of all manufacturing company expenses. The cost of materials is market driven and manufacturing companies have minimum control over the same. Profitability of a manufacturing company therefore depends on having efficient & effective purchase practices. Implementing Purchase Best Practices is the way forward to achieve smooth-running purchasing process that focuses on cost efficient purchasing. What are Purchase Best Practices? Purchase best practices...

Importance of Sales KPIs For Manufacturing

Posted on June 9, 2023June 9, 2023 by forceintellect

Importance of Sales KPIs for Manufacturing I think you will agree that your manufacturing company wants to boost its sales performance & improve profits. Right? Do you have a systematic sales performance measuring & tracking system in place? As they say, what you can measure, you can improve. Have you defined the sales goals & targets for number of leads, lead conversion rate, sales pipeline, customer acquisition cost and so on. Are you keeping a close watch on your target vs actual performance by monitoring the sales key performance indicators? (Sales KPIs)? KPIs essentia...

Inventory Management Best Practices in Manufacturing Industry

Posted on May 31, 2023June 9, 2023 by forceintellect

Inventory Management Best Practices in Manufacturing Industry Adopting Inventory management best practices plays a crucial role in the success of any manufacturing industry. Ensuring proper inventory control and inventory optimization enables manufacturing companies to increase efficiency, improve productivity, reduce costs, avoid stockouts, ensure timely deliveries, improve customer satisfaction. Implementing the following inventory best practices, can help manufacturers streamline their operations and ensure smooth production processes. Accurate Demand Planning: Accurate demand plannin...

Reorder Point | Optimize Inventory with Reorder Point

Posted on September 16, 2022September 22, 2022 by forceintellect

Reorder Point | Optimize Inventory with Reorder Point What is a Reorder Point? Before we get into the details of Reorder Point, what is the definition, formula, importance, benefits of Reorder Point, let me share a small anecdote. One manufacturing company that produced rolled steel products, ran out of stock of a commonly used bearing. It took almost 12 hours for the company to arrange for the common bearings and production came to a grinding halt till then! Now, if you consider it carefully, the cost of the bearing was minor, but the resultant impact of production coming to a halt wa...