Learn how to enhance efficiency and reduce costs by implementing technology-driven solutions, while also improving customer experience and financial management.
Manufacturers have long been reducing waste and improving product yield and quality by rolling out lean and six sigma methodologies. However, due to the complexity and quantity of production activities for most manufacturers, it’s often challenging to identify where to optimise processes.
This is where implementing new technology can help. Kevin Bull, Product Strategy Director at Columbus, explores five benefits of introducing manufacturing-specific solutions within your operations and how it’ll improve your financial efficiency.
1.Improve customer experience
Being able to provide seamless customer experiences is fundamental to reducing the cost of acquiring new customers. With at least 50% of manufacturers reporting their customers are now demanding a faster, simpler service, offering convenient experiences won’t just help retain your existing customers. It’ll help you attract new ones too.
By integrating AI solutions like a chatbot on your site, you can quickly answer common queries without the need of a customer service representative. Additionally, chatbots will remember your customers’ previous conversations. So, if they regularly enquire about a product before making a purchase, you can then use this data to boost your targeting efforts, increasing the chances of a sale.
A CRM system can also improve your customer experience. For example, if your CRM system is fully integrated within your technology stack, you can:
- Eliminate data siloes and duplication as your data will be streamlined across your organisation
- Minimise manual work, reducing the chances of human error
- Improve team collaboration by easily identifying key information about your customers. This can help you close deals quicker and seek out additional sales opportunities
2. Better predict customer payments
With built-in AI, machine learning and predictive analytics, you can better analyse customer payment history and predict invoice payments. For example, if one of your customers isn’t paying on time or hasn’t paid an invoice, it’ll help the team proactively flag the issue so you can predict customer payments more reliably.
This feature can help you proactively reduce write-offs and improve your margin.
3. Reduce global financial complexity
With the right financial solution for the manufacturing industry, you’ll be able to consolidate and streamline information, making it easier to:
- Adjust to ever-changing global financial requirements by using flexible, rules-based charts of accounts and dimensions
- Manage changing regulatory requirements with code-free configurable tax, e-invoicing, and other formats
- Comply with local and global business requirements
With an intuitive, customisable cash flow-forecasting solution, you can make more accurate cash flow predictions. This can reap benefits including being able to review cash flow in real-time, identify trends to make better informed decisions (backed with data) and predict customer invoices.
4. Tackle rising costs
Currently, the manufacturing industry is facing a growing number of financial challenges, from the spiralling cost of raw materials to recurring supply chain disruptions. In response, you need to look at improving your cash flow whilst simultaneously reducing your current operating expenses where possible.
Here are a few ways manufacturing-specific solutions can help:
- Consolidate your data – by bringing your data into one place in areas such as budget control and financial planning, it becomes easier to identify where you can improve operational efficiency and reduce costs
- Better inventory management – gain full visibility of your stock to prevent over or under-stocking
- Improve operational visibility – gain access to advanced analytics tools to help you create financial reports from all areas of your manufacturing operations.
5. Boost productivity and efficiency
Many solutions come with automated functionality. Certain manual tasks can be automated, for example, consolidating and analysing historical data, saving you time that you can then spend on higher value-added projects.
Then there are subscriptions, such as automated recurring billing, which make it simpler to adapt to new revenue recognition standards, reduce audit costs and create more accurate financial statements. This makes it easier to comply with varying revenue standards.
The right technology is the first step towards improving cost efficiency
If you’re wanting to become a more cost-effective manufacturing business, the fact that you’re thinking about investing in the right technology is a great start. The right solution can transform your financial capabilities, from consolidating your data and improving visibility to enhancing the accuracy of your cash flow predictions and ensuring compliance.
Interested in learning more about improving your financial efficiency? Read the manufacturing cost efficiency guide from Columbus.
Kevin Bull, Product Strategy Director at Columbus
With extensive experience in the manufacturing industry, Kevin is well positioned to guide a business through its selection and implementation of a business-critical IT solution.
Contact Kevin at [email protected]
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