When Cash Is King: 8 Strategies for Using Microsoft Dynamics GP to Wring Extra Money from Regular Transactions

My background is primarily technical. However, as businesses of all sizes face off against difficult economic conditions, with cash management becoming the Numero Uno priority, I feel it is time for me, and many others, to merge technical skills with business savvy to save companies money.

This article focuses on the areas of purchasing, receiving, and accounts payable--processes traditionally neglected by many companies, but among the best opportunity areas for cost savings and automation. The strategies outlined here are based on real-life experiences with a wide range of customers in various industries and what has worked effectively for their purchasing departments after implementing Microsoft Dynamics GP.

1. Get Rid of Paper. At an $800 million wholesale grocery distributor, the single biggest cost for its purchasing and payables department was the massive use of paper to print out purchase orders, purchasing change orders, requisitions, shipping receipts, and vendor payments. Everything made it to paper! By implementing paperless purchase orders, centralize vendor files, receive invoices electronically and electronic payment methods, such as business credit cards, Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), the customer was able to reduce paper handling costs by as much as 85%.

2. Automate your Purchasing Process. At a $300 million commercial security services and equipment provider, the purchasing function was done in five different systems, making it difficult for purchasing managers to have visibility on vendor invoices. Consolidate your purchasing process and take advantage of Microsoft Dynamics GP's powerful invoice matching function to save time and cut down on paperwork. The customer was able to save $355 per million in sales.

3. Stretch Payment Terms.  At a $200 million sugar factory in Guayaquil, Ecuador, the customer negotiated better payment terms with its suppliers based on ...