Focus on ROI: 8 Strategies for Using Microsoft Dynamics GP to Wring Extra Money from Regular Transactions 1. Get Rid of Paper. At an $800 million wholesale grocery distributor, the single biggest cost for its purchasing and payables department was the massive use of paper to print out purchase orders, purchasing change orders, requisitions, shipping receipts, and vendor payments. Everything made it to paper! By implementing paperless purchase orders, centralize vendor files, receive invoices electronically and electronic payment methods, such as business credit cards, Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), the customer was able to reduce paper handling costs by as much as 85%. 2. Automate your Purchasing Process. At a $300 million commercial security services and equipment provider, the purchasing function was done in five different systems, making it difficult for purchasing managers to have visibility on vendor invoices. Consolidate your purchasing process and take advantage of Microsoft Dynamics GP's powerful invoice matching function to save time and cut down on paperwork. The customer was able to save $355 per million in sales. 3. Stretch Payment Terms. At a $200 million sugar factory in Guayaquil, Ecuador, the customer negotiated better payment terms with its suppliers based on receipt of goods and invoices. Microsoft Dynamics GP's vendor inquiries and reporting allowed the customer to analyze vendor delivery patterns and payments made and allowed the purchasing team to add one week to the payment terms or 25% more on a 30-day terms. With the implementation of EFT for just-in-time payments the customer was able to maximize payables terms and minimize the impact on the business credit. 4. Capitalize on Prompt Payment Discounts. If vendors are giving you 2% discount over 10 days on a net 30 payment term, then don't miss out! Microsoft Dynamics GP can help you track discounts available and setup alerts on upcoming discounts. For a $20 million customer in the professional services industry, a 2% discount translated into an 18% ROI, which certainly beat what the banks could offer. 5. Review Purchases. Purchasing is not a discrete process, hence requires constant review. Consider that the average purchasing cycle may include freight charges, expedited fees, odd lot penalties, constant price changes, everyday new products, a consolidating vendor arena, new vendors or buying groups, ever-changing payment terms, and more. At a $250 million national wholesale fragrance distributor, the implementation of Microsoft Dynamics GP and Electronic Data Interchange was critical to minimize the fees paid for missed delivery windows and to keep up with constant changes in vendor product pricing. 6. Minimize Purchasing Disputes. Disputes with vendors are generally a result of problems upstream with your purchasing and receiving processes. At a $120 million manufacturer of aluminum windows, Dynamics GP and Analysis Cubes provided the ability to track the results of the purchasing process and establish metrics to improve vendor management. 7. Minimize Clerical Errors. At an $80 million music production and recording company, overpayments, payments made to the wrong suppliers, late payments of royalties and fake invoices to correct issues were all a 'normal' part of everyday life. With the implementation of cash requirements reports, regular check runs, safe pay and EFT, the customer focused on improving written procedures and implementing audits, reducing these errors considerably. 8. Train your staff regularly. Provide your accounts payable staff with regular formal training. It is safe to assume that your organization invests in training each time the Dynamics GP application suite is upgraded. Likewise, you should send your staff to formal accounts payable training to provide them with negotiation skills, fraud detection and prevention, and understanding of the economics of payables. Application knowledge combined with formal training will result in better controls and improved effectiveness. Some of these changes do not come easily, but your organization possesses the tools and the resources to move forward and gain control over the purchasing and accounts payable process, thereby improving cash flow and improving the bottom line. Work with your Microsoft partner to understand the purchasing and payables modules and the options available to you today. | 
