There are a lot of key metrics that indicate whether you have a healthy business, including an evaluation of sales data. However, you need to go deeper into your financial figures to see if those sales are generating profits. There are always going to be products or services and certain customers that generate a higher profit margin than others. The trick is finding that data and leveraging it to your advantage.
Most businesses can easily calculate total or regional sales over a certain period of time. Some businesses may even keep tabs on sales data by sales person, product line, and by customer. However, it can be a challenge to dig deeper and look at the true costs behind these figures to determine which sales were more profitable than others. Having access to these figures can give you the insight into the operations, the supply chain, or various activities that yield higher profit margins. You won’t get quick access to these details by using disparate specialty software or elaborate spreadsheets. You can, however, get this insight from the business intelligence features that are built into a comprehensive, enterprise resource planning (ERP) solution.
Many of the more robust ERP solutions, such as Microsoft Dynamics® GP, offer the ability to manage all of your business operations from a single software solution. Using a single solution makes it easier to identify relationships and trends in your business data. You can identify the specific metrics with the biggest impact on profitability then track those metrics in real time in order to reach strategic goals. For example, greater insight into your supply chain will help you identify more cost-effective sources of raw materials and affordable shipping options. You can then streamline the manufacturing or distribution processes so you can get your products to customers with greater efficiency.
Learning what you do well, as well as what you can do better, can strengthen your business and lead to greater growth. Dive deeper into your business data by using the business intelligence features in a robust ERP solution. The experts at The Resource Group can provide more information about ERP solutions that offer business intelligence. Contact The Resource Group for assistance with your quest for sales and profitability data that you can use to drive growth.
By The Resource Group, a Microsoft Dynamics GP Partner out of Washington