You Need Money To Make Money

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Cash is king, as we’ve been told, and this theory is just as relevant today as it was yesterday.  Having a positive, healthy cash flow gives us room to respond quickly to new opportunities, make capital investments when they are needed, and make the decisions that drive growth.  There are many ways to make your money work harder for you, but a good place to start is with inventory control.

The ability to maneuver in an ever-changing marketplace requires a reliable cash flow.  You need cash to pay your people, buy the inventory and products your customers want, and expand business operations.  Many businesses turn to solid business management technology, such as Microsoft Dynamics® GP (, to save money by streamlining operations and controlling inventory.  Microsoft Dynamics GP also offers greater insight over business operations, including inventory, and this is where you can influence cash flow.

Inventory can make up a significant part of the physical assets for a manufacturer or distributor.  A warehouse full of raw materials and products can have a pretty impressive price tag which is why inventory has such an impact on cash flow.  Technology like Microsoft Dynamics GP offers the ability to actively monitor healthier levels of inventory to reduce the chance for over-stocking or making mistakes leading to costly back-orders.  This integrated solution manages financials, manufacturing, supply chain, inventory, project and services management, and other core business functions.  Building connections between business operations will help identify trends in product sales and customer buying habits.  This insight will help you hone in on what inventory to buy, the quantities needed, and when they will be needed.  Save cash by working with leaner inventory levels, having just what you need to satisfy customers.  Keep an eye on trends marking a decline in interest for products or product lines, so you can use up obsolete inventory and not get stuck with raw materials that customers won’t buy.

Timing of raw material orders, making more accurate replenishment forecasts, and investigating logistical supply chain improvements are all ways to reduce needlessly high inventory levels and each is possible with technology like Microsoft Dynamics GP.  Reducing costs associated with inventory management can free up the cash flow you need to react to new opportunities, invest in capital improvements, and protect your business in these challenging economic times.  Contact Perimeter Business Solutions for additional information about optimizing cash flow with Microsoft Dynamics GP.

By Mark D. Kosakowski of Perimeter Business Solutions, Microsoft Dynamics GP Partner out of Georgia


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