Shelter in place orders have been in place for weeks and negatively impacting buinsess.
With restrictions on travel, social distancing and mandatory quarantines, the current estimates are for double digit decline in GDP in Q2 2020. After surviving Y2k, the dot com bomb, and the financial crisis we have learned many lessons about how to survive a recession. Since doing nothing is not an option and tightening the belt will only help so much, consider some of the following tips to prepare for and emerge stronger if there truly is an impending recession.
When you have items which are slow moving they are like keeping cash in a bank account with no interest and recurring fees. If your inventory does not turn at a regular and frequent rate there are actions you can take to improve your cash flow and bottom line.
You optimize your inventory when you reduce your carrying value to the lowest amount necessary to meet your order fill rate objectives. Classification is the segregation of inventory into categories. One of the most common methods for classification is the ABC method where A are your most valuable items and C are your least valuable items. The idea is to focus on your high value items which have the most impact on carrying value.
SAP has been a leader in distribution management software, and they have maintained their leadership by staying ahead of trends to meet customer needs. The 2019 SAP SMB Innovation Summit held in Orlando June 18-20 was focused on how SAP customers are already using big data, coupled with artificial intelligence to create the Intelligent Enterprise.
We are often asked if SAP Business One will be as easy to use as QuickBooks, but the question is not as simple as it may seem. QuickBooks is a simpler system and built for small businesses that may not have a true accountant, or a logistics manager for their inventory. So if you base the question on simplicity, the answer would be absolutely not.
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