How the right solution improves financial efficiency for manufacturers

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 they can optimise their processes.

This is where implementing new technology can help. Here, we explore five benefits of introducing manufacturing-specific solutions within your operations and how it’ll improve your financial efficiency.

1. Improves customer experience
2. Better predict customer payments
3. Reduces global financial complexity
4. Tackles rising costs
5. Boosts productivity and efficiency

1. Improves 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 since the pandemic, this means that offering convenient experiences won’t just help retain your existing customers. It’ll help you attract new ones too.

By integrating intelligent AI like a chatbot on your site, this will allow you to 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, so you can close deals quicker and seek out additional sales opportunities

Find out more benefits of a CRM system here.

2. Better predict customer payments

With 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. AI, machine learning and predictive analytics tools also helps you proactively reduce write-offs and improve your margin.

Predict customer payments more reliably as you can better understand if and when customers will pay their invoices. This is thanks to built-in AI, machine learning and predictive analytics which analyse customer payment history and allow you to predict invoice payments.

This feature can help you proactively reduce write-offs and improve your margin.

3. Reduces 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

Thanks to an intuitive, customisable cash flow-forecasting solution, you can make more accurate cash flow predictions. Review cash flow in real-time, identify trends to make better informed decisions (backed with data), predict customer invoices (mentioned above) and more.

4. Tackles rising costs

Currently, the manufacturing industry is facing a growing number of financial challenges, from the spiralling cost of raw materials to the ongoing impact of the energy crisis. 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:

• Consolidates 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/ under-stocking
• Improves operational visibility – gain access to advanced analytics tools to help you create financial reports from all areas of your manufacturing operations

Learn more about how you can reduce your operating expenses in the manufacturing industry with technology by reading our blog here.

5. Boosts productivity and efficiency

The right solution will come with automated functionality. Certain manual tasks can be automated, for example, consolidating and analysing historical data, which saves you time that you can then spend on higher value-added projects.

Additionally, you can use automated software to reoccur customer billing, making 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 solution will come with automated functionality. Certain manual tasks can be automated, for example, consolidating and analysing historical data, which saves 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 good thing. The right solution can transform your financial capabilities (as you’ve learnt in this blog), from consolidating your data and improving visibility to enhancing the accuracy of your cash flow predictions and ensuring compliance.

But that’s not the only way you’ll become a more cost-efficient business. You’ll need to make sure the technology you choose will fit in with your current processes. And of course, you need your team to buy into your vision of an innovated, cost-efficient future. In our guide, you can explore:

• The solutions that can help improve process efficiency
• The benefits of improved financial capabilities for manufacturers
• Why change management is key to business transformation

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