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How to Reduce Manufacturing Costs using SAP Business One

Updated: Sep 19, 2023

A priority for any manufacturing firm is to improve profit margins. It’s almost the Holy Grail for manufacturers: how to reduce manufacturing costs. On the surface, it might seem straightforward. You make a few cuts here and there, and the bottom line will improve. Unfortunately, nothing is ever that simple – especially when it comes to manufacturing. There are lots of different approaches and strategies that manufacturing firms have adopted in an attempt to become leaner. You’re probably aware of the Kaizen strategy, or the 5s approach – which has now evolved into the 6s.

The pros and cons of each of these are well documented. But what if these strategies don’t fit in with your processes? Or is your business searching for an approach that is used across the globe to deliver long-term cost savings? That’s where SAP Business One comes in.


Cost-Effective Production

SAP Business One has several key features that can help manufacturing firms boost profits. Core solution tools support the basic requirements for production activities. It helps manage bill of materials (BOMs) – including different resource types – production orders, and material requirements.

In an industry where component prices fluctuate quickly, SAP Business One lets you maintain BOM costs allowing you to pass on any increases to customers and clearly define manufacturing margins.

Production Processes

Clear visibility into operations is vital if you want to trim production costs. But you can only do this if you genuinely know what’s happening in your production line. SAP Business One lets you capture, store and analyze your key manufacturing activities centrally. Manufacturers can optimize their workforce by analyzing and identifying new opportunities to save money and quickly cut unnecessary inventory carry costs.

Manufacturing Reports

SAP Business One includes the powerful SAP Crystal Reports feature as standard. This provides manufacturing organizations with a series of comprehensive reports for production management. These detailed and accurate reports are generated quickly, allowing you to make fast and effective decisions to reduce manufacturing downtime, improve overall efficiency and boost productivity.

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