SAP Business One for Operations Managers

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Operations Managers typically ensure smooth operation of various processes that contribute to the production of goods and services of an organisation. Their role is very wide and encompasses many operational areas. While other employees can focus on a specialised area of operation (for example, finance and systems support), an Operations Manager typically wears multiple hats and does a bit of just about everything.

What are the top three business issues that an Operations Manager needs to resolve?

  1. Balancing stock and resource requirements
  2. Budget management
  3. Improving the supply chain

Balancing logistics and stock levels

Nobody is going to thank the operations manager that doesn’t have sufficient stock or the resources available to meet customer demand. But, quite ironically, the FD will not be too happy with the operations manager that has overstocked and is tying up capital in raw materials or finished goods without a ready market.

How does an operations manager know the right level of stock to hold? It’s partly down to previous purchasing patterns mixed with sales forecasts and competitor analysis. Managing sales demand without this information is very difficult especially if you are managing thousands of products. An effective ERP system like SAP Business One will help the operations manager to plan and manage the requirements for the stock and resources through tools such as MRP (Material Resource Planning).

Budget Management

Every well run company has a target margin to achieve. Partly based on historical performance as well as the typical returns in the particular industry, the business will know what margin it needs. An operations manager will need to manage margin closely to ensure the business delivers consistently. Without consistent visibility of all operations, they simply will not be able to do this properly.

Improving the supply chain

Supply chain management is an important part of an operations manager’s role. But, more than that, they have to objectively evaluate each supplier regularly for price, consistency and quality of product. If necessary, they will seek out replacements if the current supplier isn’t performing. How do you manage such a process? Using an ERP system like SAP Business One is a very good way of doing this.

How will SAP Business One help an Operations Manager deliver?

Like Project Managers, Operations Managers have a job role that covers a multitude of areas within the business. Having this responsibility means they need to be able to visibly see how the areas are performing through statistical data – SAP Business One can help provide them with this information.

An integrated view gives Operations Managers the ability to control organisational processes without guesswork. It allows them to also add flexibility and quickly reschedule where necessary to meet demand. It allows them to measure the impact on margins on an ongoing basis. And it allows them to keep control on costs in every department day by day.

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