The end of 2010 saw smaller manufacturers in the UK increase production as a result of increase demand for goods.
30% of manufacturers reported an increase in output volumes, which when balanced with the 17% who saw a decline results in a 13% positive balance.
According the CBI’s SME Trends Survey has revealed that 28% of small manufacturing companies saw a rise in domestic orders. There was a positive increase of 8% when you take the 20% who experienced a fall in domestic orders. Though the fall in domestic orders may initially seem comparable this was actually the fastest increase that has been seen since January 1997.
One of the biggest burdens for manufacturing companies is cost pressures which are continuing to squeeze profit margin and manufacturers inevitably have to consider passing on the price increase to their customers.
What small manufacturing companies need to consider is how they can streamline operations and optimise inventory management. With an integrated business management system they could save both time and money, reducing overheads whilst improving customer service and the efficiency of the whole organisation.
The increase in costs is unavoidable. Small to medium sized manufacturing companies need to see where they can improve their business, ultimately cutting costs and increasing profit margins though driven with a view to becoming a better run business.
“One accountant is now processing over 1,000 invoices a month, plus doing all our purchasing. Without the SAP Business One application that just would not be possible.”
Philip Delaney, Managing Director, Dairyglen
“Despite having been in business for nearly 30 years we discovered there wasn’t a single process that couldn’t be radically changed for the better. SAP Business One is about streamlining processes, and that’s what we set about doing- right across the company.”
David Murray, Chief Executive, Murray’s Medical Equipment
There are always ways to minimise threats and overcome weaknesses. Identifying where these weaknesses exist and what the threats are is the hard part. You need to get to know your business and then a solution can be designed to specifically meet your needs. Finding the right partner is the first step towards becoming a better business.
Original Post: Small Business UK