Netsuite - Simplifies Complexity
Growing a business Globally is challenging, complexity can be managed but cannot be completely eradicated, on the other hand not everything can be made simple especially in an ever-changing global business environment like the one we are living in today ... Unfortunately, Complexity often wins! It must be said though that Scientific studies have revealed that Living organisms became increasingly complex over the process of evolution as a survival mechanism, thus complexity is not always bad. Developing complex processes and being able to manage them can create a competitive advantage. The successful business processes of the future are surely complex but not needlessly so. Managers tend to mistake symptoms for causes, this because sometimes they over simplify things, in order to avoid that , they need to avail themselves with the right tools to help them identifying the real causes of a problem, eradicating the symptoms can only lead to short term solution at best. Netsuite Is the only tool available today in the market that not only simplifies your approach to complexity but makes sure that any symptom is thoroughly investigated, and the real cause is unearthed and finally dealt with. For example, an unhealthy group cash flow from operations is a clear symptom that the group is cash bleeding, solving the problem by injecting more cash perhaps by issuing debentures, means dealing with the symptoms and not with the real causes. To support the process of identifying the cause, in Netsuite one can run a consolidated Cash flow from operations with the possibility to determine each subsidiary contribution to the overall combined balance, then once identified the area of non-performance, it is possible to investigate the causes. In the following scenario we have identified 3 possible causes and determined how Netsuite can help to eradicate them:
Symptom - Our Customers are not paying their bills on time
Netsuite Remedy - We can run an aging report with the Days overdue element on it, once identified the customers with the highest days overdue we can delve into the causes of the delays and take the appropriate remedy actions. For example – We are shipping products of low quality and customers are complaining and refuse to pay their bills. We can immediately identify the items sold to the customers through one of the many reports available , search the bins in which the products are located and change the status from Good to Low Quality, in this case our warehouse operators will never pick again a low quality item, we then contact the underlying supplier of the product to demand better quality, we do need to install Netsuite Quality management application.
Symptom - Suppliers are demanding pre-payments, or the payment terms are not aligned with our customers payment terms.
Netsuite Remedy - The supply chain manager needs to identify suppliers that demand pre-payment and investigate why we cannot get a credit line. It is vital to have a wide array of suppliers to make sure that we purchase not only the cheapest product but also that the general terms and conditions of the purchases are in line with our expectations. The supply manager can automate this process by using the Request for Quote application in Netsuite.
Symptom - We are purchasing too much stock and products sit idle in one or more Locations. If we buy more and pay in advance our cash flow from operations can be seriously affected.
Netsuite Remedy - The inventory manager can run the new and highly effective Stock Ledger report to have a quick analysis of the historical evolution of the stock. Furthermore he/she can run a stock aging report to identify the items that are sitting idle in one or more locations and provide this vital piece of information to the sales manager to make sure that old stock is sold before purchasing new one.
If you feel that you are dealing with the symptoms of a problem and not with the underlying causes, contact us we would be more than happy to help you.