How ERP can free up your working capital

The first thing that comes to mind when thinking about working capital is the optimal management of cash to drive our company's objectives; however, the availability of such capital is linked to the operational and administrative performance of our team.

When there is a deficient management of the available resources, this translates into less working capital, which does not allow us to face expenses, unexpected events or investments necessary to promote the development of our business.

To face this and other challenges, a Mexico ERP system can help you maintain stable workflows, alert you when necessary and highlight important transactions in all areas of the business, so that you can dispose of your capital without compromising funds.

Go for sustained growth with an ERP System

Having clear and organized information about the different areas and production processes of your company will facilitate the optimization of resources, because you can know with accurate data, from which sectors you can draw on to support others that require them, let's see an example:

A logistics company has recorded failures in some of its vehicles, but does not have the resources to make the necessary repairs even though they are critical and prevent the operation of the machines.

Although the company has an accounting system, it is a tool isolated from the rest of the operations and systems, so it does not allow to know the financial situation of certain sectors or production processes.

With the adoption of an ERP, the company could know the financial information of the different areas, know from which and to what extent resources can be extracted, without affecting productivity or the normal operation of the business.

Let's look at another scenario:

A furniture manufacturing company has several storage warehouses. Each one is dedicated to different products. This month, despite many efforts, they were unable to move their entire inventory of mahogany tables. So, they were forced to hire an independent service to store their product.

However, after doing so, they realized that there was enough space in another of the company's warehouses for that product, unfortunately, the personnel in charge of each warehouse were not aware of the situation in the other instances of the company, because their control systems worked independently.

As you can see, an ERP is a platform that allows managing different areas and processes in an integral way: it is a strategic solution that allows companies to restructure when necessary, facilitates the organization of resources and can strengthen specific areas, make investments or face crisis situations.

This is because an ERP Software allows companies to manage their different sectors and processes in a centralized way, it is possible to have concrete information about the macro state of the company, and the detail of each area in a specific way.

In this way, managers can make strategic decisions based on valuable data, which are permanently updated and easy to obtain.

Therefore, an ERP system can be more than a management system: if used in the right way, it can be the strategic ally that every business needs for a solid growth, as it is also a competitive differentiator.