Rethinking Business Processes to Boost Margins

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Food Manufacturing, August 2014 Brian Shannon Many food manufacturers struggle to keep profits high amid thinning margins and must continuously seek new and innovative ways to reduce costs. Companies across the spectrum of food manufacturing, whether it be a purveyor of customized ingredients for the food and beverage industry, a leading spice manufacturer, or a multi-national food and beverage company, have all found a recipe for success and profitability by optimizing their near-cash processes. Follow the Money Near-cash processes, such as Accounts Payable (AP) and Accounts Receivable (AR), are responsible for moving cash through the enterprise and provide a very direct way to control the flow of cash and drive greater profitability. While many manufacturers are quick to introduce modern manufacturing techniques and advanced distribution systems in a bid to stay competitive, they often overlook the fact that near-cash processes require innovation too. Unlike other changes in manufacturing that can be very resource intensive, simple improvements to near-cash processes can make an immediate impact on the bottom line. Align Process Changes with Corporate Objectives Successful process optimization projects starts by aligning any process changes with current corporate objectives. If reducing costs is a corporate goal, it is important to find ways to leverage existing infrastructure investments and build simple, sustainable processes. Making optimal use of your human resources is also important. When processes are truly optimized, human resources provide the skills and critical thinking that is needed to support continuous process improvement and larger organizational goals. To read the full article on Food Manufacturing click here. Download_PDF

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Rethinking Business Processes to Boost Margins

Food Manufacturing, August 2014
Brian Shannon

Many food manufacturers struggle to keep profits high amid thinning margins and must continuously seek new and innovative ways to reduce costs. Companies across the spectrum of food manufacturing, whether it be a purveyor of customized ingredients for the food and beverage industry, a leading spice manufacturer, or a multi-national food and beverage company, have all found a recipe for success and profitability by optimizing their near-cash processes.

Follow the Money
Near-cash processes, such as Accounts Payable (AP) and Accounts Receivable (AR), are responsible for moving cash through the enterprise and provide a very direct way to control the flow of cash and drive greater profitability. While many manufacturers are quick to introduce modern manufacturing techniques and advanced distribution systems in a bid to stay competitive, they often overlook the fact that near-cash processes require innovation too. Unlike other changes in manufacturing that can be very resource intensive, simple improvements to near-cash processes can make an immediate impact on the bottom line.

Align Process Changes with Corporate Objectives
Successful process optimization projects starts by aligning any process changes with current corporate objectives. If reducing costs is a corporate goal, it is important to find ways to leverage existing infrastructure investments and build simple, sustainable processes. Making optimal use of your human resources is also important. When processes are truly optimized, human resources provide the skills and critical thinking that is needed to support continuous process improvement and larger organizational goals.

To read the full article on Food Manufacturing click here.

Download_PDF