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23 Sep

Don’t Be Caught Unprepared – Have a Risk Management Process

Sometimes it seems like business is running great: Customers are happy, employees are productive, there’s a backlog of orders and products flying off the shelves.

But what happens to this success if a natural disaster strikes a key supplier? If a customer defaults on payment? Or if an employee abuses a company credit card?

While these setbacks are frustrating and stressful when business is going good, just one of these scenarios can prove devastating if a company was already dealing with regular day-to-day challenges like bringing a new supplier online or budgeting for employee pay increases.

It takes hard work from owners and management to make the company run smoothly, but only one unforeseen event to throw it all into a tailspin. Using Microsoft Dynamics GP will help you manage and measure operations so that you know where your vulnerabilities are and how to correct problems before they happen.

By making the risk management process a continual process rather than an incident¬Ě reaction, business can build the transparency and flexibility necessary for risk management into their business practices. Robust reporting can target weak spots in the supply line and vulnerabilities in accounts receivable before they damage the bottom line.

When it comes to mitigating supply chain vulnerability, transparency in the process is key. By entering sales, inventory and shipment information into Microsoft Dynamics GP, different departments can work together more effectively.

As sales are being made, the factory can manage inventory levels and prepare for manufacturing operations. Knowing when raw materials are slated to arrive and when products need to be manufactured and shipped will streamline supply chain bottlenecks. And real time access to important business data yields more accurate sales forecasts, appropriate inventory levels, increases order accuracy, and the ability to negotiate better terms with suppliers and vendors.

Minimize the weak links in your supply chain and be better prepared to weather possible business disruptions with Microsoft Dynamics GP.

On the financial side of the equation, GP accounting tools will provide more timely analysis of accounts payable and receivable, collections, and bank reconciliations than traditional ledgers or simple spreadsheets. Improving fiscal procedures will optimize your cash flow, minimize capital expenditures, and provide the ability to expand operations or capitalize on peak sales times.

Don’t wait weeks after month-end reporting to discover a salesman celebrated closing a big deal with a $2,000 dinner, or to find out a key customer is slipping in making payments. Having access to the real time financials help make timely business decisions on a regular basis and especially when there is a catastrophic disruption.

Keep business outlooks on the sunny side by making the risk management process part of regular company activities. For more information about how GP can provide powerful tools to keep risk at bay, contact Conexus SG at 469-828-3274 or via email at info@conexussg.com.

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