Tale of a Turnaround, Part 2: “How do We Create Value?”
The value a business creates as it provides services or converts raw materials into products will drive its ability to generate revenue. However, any waste or inefficiencies in the services or material conversion processes drive up costs and impact customer responsiveness. Quickly mapping “the Life of an Order” as it moves through the business clarifies the Value Streams and can highlight opportunities to eliminate waste or improve information flows.
In this client’s case, they were utilizing an outdated operating and accounting system which hindered their ability to capture margin details and effectively track inventory. They initially considered Sage 300 but we advised that the multi-language and multi-currency capabilities plus the implementation cost were overkill for their size and financial condition. Instead, we guided them towards Sage 100 Cloud which was implemented in three months.
With solid business software in place, we could now begin to track and manage Key Performance Metrics.
