For manufacturers, gaining efficiencies continues to be a top priority. One only has to look at the rise in lean standards to see this trend. And while many are making great strides in maximizing their physical operations, administrative areas should be considered as well. Specifically, in many cases, there may be an opportunity to create time- and money-savers in company financial processes.
First, evaluate and properly plan for equipment guidance line needs. As technology continues to evolve, many manufacturers are purchasing more equipment to support their operations. As businesses expand their work, make repairs or replace units, they may find themselves making multiple purchases throughout the year. Rather than go through the process of taking out a separate loan for each investment, manufacturers should map out their anticipated needs for the year and take out a line that will cover all potential investments. Not only will this save time, but it also provides flexibility for manufactures to buy new or used equipment and to proactively plan for capital expenditures they may want to make during the year.
Purchasing cards are another item to consider from a processing standpoint. Not only does the right program provide valuable rewards, but it also cuts down on check writing, and provides increased flexibility in cash flow. Additionally, it creates a more streamlined tracking system for accounting departments. By allowing job numbers to be attached to specific expenses, companies can easily allocate costs to the appropriate projects, which results in more effective planning and budgeting.
Finally, remote deposit is a great service to incorporate into business operations as well. For manufacturers that have not yet made the jump, this is an easy, and extremely valuable, component to incorporate into the payments process. In addition to being very easy to use, it provides a safe and secure way to process incoming funds and also saves valuable time by eliminating the need for deposit trips to the bank.
As the saying goes, time is money, so implementing ways to become more efficient is a great way to positively affect the bottom line.
Sean Nohavec is senior vice president of business development at UMB Bank in Colorado. He can be reached at Sean.Nohavec@umb.com.