fbpx
Top Three Cashflow Tips for Craft Breweries

Top Three Cashflow Tips for Craft Breweries

If there is one business goal that a growing craft brewery needs to focus on, it’s this: don’t run out of cash.

In recent years, the craft brewery industry has seen increased demand and competition. More microbreweries are entering the market, with even more regional breweries expanding nationally.

As with any manufacturing business, the pressure to ensure steady supply and maintain growth is important, but the ability to optimise inventory control and production planning is critical.

The nature of cashflow in craft brewing can mean that it’s often delayed. Whilst a sale might be recorded, it could be weeks (if not months) before the cash for the transaction physically hits the bank account for reinvestment.

Similarly, breweries require high levels of capital investment to get started, which can include facilities, equipment, vehicles, and more. This often means that a growing brewery is running on a very tight budget, and not having the ability to report live on the impacts of decisions and transactions presents a high level of risk.

So, what can you do to better control your cash?

There are three main ways that a brewery can better control their cash.

1. Accounts Receivable

The impact of your invoice terms have a huge impact on your cash flow, because this dictates when customers are required to pay. Negotiating these terms with customers should be done carefully, with a balance struck between removing barriers to sales, whilst optimising your cash flow for reinvestment.

Similarly, by working with your customers to decrease late payments (or even incentivise for early payments) could be the most straightforward way to improve your overall cashflow. This also means that you can reinvest into the business more quickly and regularly.

Takeaway: Do you have visibility over your “average debtors outstanding” trends? Do you have brewery management software systems in place to automate payment reminders or overdue notices? Could you benefit from a system that would allow you to do this?

2. Inventory Control

When speaking to our customers, better inventory control and the ability to automate demand planning and purchasing are two of the key drivers to looking into upgrading their existing brewery management software. Most businesses have progressed from spreadsheets to basic inventory management/warehouse management but have never built the link between sales, inventory, warehousing and accounting and finance. By streamlining this flow of information, brewery owners can make better decisions about purchasing, inventory min-max policies and stock on hand.

Takeaway: Does your system allow you to automate demand planning based on sales pipeline, historical sales or upcoming marketing initiatives? If not, you might be missing a huge opportunity to make your cash work harder for you, and minimise waste and lower inventory holding costs.

3. Accounts Payable

Cashflow is key for any business, and your suppliers are no different. As a brewery grows, it gains more traction with its key supplier base, which provides an opportunity to build on the relationship – and potentially gain better contract terms. This could include price breaks for high volumes, or discounts for paying early.

If your wholesalers are anything like you, they will value the opportunity to be paid quickly, because it helps them reinvest into their own businesses. Many brewers find that once they have reached a certain size, they have been able to negotiate additional “early payment” discounts of between 1-2% depending on what they’re purchasing. There is really no easier way to lower your COGs, and what might initially seem like a small amount invoice by invoice quickly adds up and goes straight to the bottom line.

Takeaway:Are you able to see dashboards for your vendors? Can you quickly and easily see how much you’ve bought, purchasing trends or on time/late payment metrics? This information is power for a brewery and being able to quickly access this can be a powerful negotiation tool for new and existing contracts.

85% of Manufacturers Agree That Digital Technologies are Transforming Job Shop Businesses

85% of Manufacturers Agree That Digital Technologies are Transforming Job Shop Businesses

 

Why should your job shop manufacturing business embrace digital technology?

The term “digital technology” is being used everywhere, so it’s important to delve into what it really means. Digital technology is enabling collection and analysis of data in real-time across all connected devices. This is allowing businesses to make clearer, faster and more informed decisions. Digital technology covers a whole spectrum in the manufacturing world; Industry 4.0, Cloud Technology and the Internet of Things. View our cheat sheet. As one of the most complex and challenging of all industry sectors, successful job shop manufacturers are looking to ensure all elements of their business are adopting digital technology.

“We are seeing that job shop manufacturers are starting from the ground-up and researching for the most suitable cloud-based Enterprise Resource Planning (ERP) system to manage their shop floor production. “The ability to connect every aspect of the business – from managing bill of materials (BOM), quoting, packaging, shipping, production and dispatch to back office administration – gives job shop manufacturing businesses a competitive edge” Annaliese Kloe, CEO, Klugo.

Industry 4.0

Manufacturers embracing Industry 4.0 will be well placed for greater success in the future. Industry 4.0 is digital transformation applied to manufacturing, introducing the “smart factory” where cyber-physical systems monitor the physical processes of the factory. Industry 4.0 is where the supply chain and ERP system directly to the production line, enabling an integrated, automated manufacturing process to make better use of capital, raw materials and human resources. 64% of manufacturers say that they have implemented the basics to use this data for improving operational efficiency and/or quality.

What are the benefits of cloud ERP?

With an extensive range of product features specifically tailored to the needs of job shop manufacturers, NetSuite is the only ERP solution for job shop manufacturers. Cloud ERP boosts productivity, streamlines business operations and enables full transparency across the business. A complete business management suite with modules created solely for the manufacturing industry, this job shop manufacturing software can automate and monitor factory floors, supply chains, inventories, production, shipping, quality control and customer relationship management (CRM). Get in touch today to speak with an expert. For more information, download our NetSuite for Job Shop Manufacturing Brochure below.

Caravan and Motorhome Industry is Growing at 4.2% Annually – How Can Companies Gain from the Growth?

Caravan and Motorhome Industry is Growing at 4.2% Annually – How Can Companies Gain from the Growth?

 

Industry Update

Australia’s ageing population is driving demand for caravan, motorhome and camper trailer rental and purchasing. According to a recent IBISWorld report, the caravan and motorhome industry is projected to grow at an annualised 4.2% over the next five years. With some of the largest companies in the industry estimated to be contributing approximately 70% of industry revenue, how can other businesses increase their revenue?

What does this mean for my business?

Each and every business in the industry faces unique opportunities and challenges; for example, any businesses in the motorhome and camper trailer sector report that they suffer from inefficiencies due to having a number of unreliable, outdated and often “on-premise” business systems in place. While innovative manufacturers are gaining a competitive edge by embracing modern, reliable, cloud technology, the businesses that aren’t are getting left behind.

“It’s only a matter of time before more manufacturers are using cloud technology, so why not understand the technology now and the benefits it brings before you start playing catch-up”, Annaliese Kloé, CEO, Klugo.

What are other businesses in the industry doing?

With many motorhome and camper trailer businesses still using legacy systems, several in the industry are citing that they lack full visibility, which is why more companies are implementing manufacturing software, NetSuite. NetSuite is one single, cloud-based system that equips manufacturers with a unique set of processes, activities and systems specifically tailored to the requirements of different businesses needs. Providing a 360-degree view of your business including; customers, orders, work in progress, items and inventory, manufacturers are assured they have solid and reliable business processes in place. Using manufacturing software, companies can automate production planning and inventory management which ensures that costly errors and delays are avoided, allowing you to focus on customer centric operations and growing the business. NetSuite is a pivotal platform for growth, and continually provides manufacturers with a range of functions tailored to the industry, including the creation of multi-level production jobs and off-site visibility.

Why Klugo?

We’ve been working within the manufacturing industry since 1949, so we know the industry inside out. We’ve worked with manufacturers to consolidate legacy systems onto one complete platform and have seen these companies grow. Our unequaled industry knowledge means that we know exactly what technology is required to streamline and automate manufacturing businesses, from factory floor and warehouse to sales, support and finance. Get in touch to find out how we can help you grow your business.  

How to Ensure Your Business Thrives in the Medical Equipment Manufacturing Industry

How to Ensure Your Business Thrives in the Medical Equipment Manufacturing Industry

The medical equipment manufacturing sector is growing rapidly. With an ageing population and emerging foreign markets, medical equipment manufacturers face endless challenges within the industry; competitive pressures, product complexity and customer demand to name a few. Some key drivers for the industry include health expenditure, demand from scientific research services and a further demand from an ageing population with many now living to well above 70 years. ERP software is becoming more popular for medical equipment manufacturers in order to comprehensively manage the entire business using one single solution. 

What’s happening in the medical equipment market?

New technologies, standards and regulations are continuously being introduced, so staying ahead of these changes can be crucial in whether your business makes or breaks. Medical equipment manufacturers are subject to endless regulations and standards that they have to comply with. There are constant quality challenges, whereby maintaining quality standards has become even harder for manufacturers in the industry. There is also a need for access to low-cost, 24/7 technical support. Medical devices are used around the clock across the world, and they require timely technical support to avoid costly issues. With medical equipment manufacturing businesses facing challenges and competition like never before, a solid, reliable management platform is crucial to support the business.

Top 10 benefits for medical equipment manufacturers implementing an ERP

  • Complete product and component traceability with strengthened inventory and warehouse management.
  • Ability to handle multiple planning models and configuration.
  • Visibility across all aspects of the business.
  • Improved supply chain management and cost control.
  • Flexibility in adapting products to specific customer wishes.
  • Enhanced shop floor productivity.
  • Improved lifecycle management.
  • Low cost, efficient operations.
  • Effective sales and support.
  • Optimised production capacity.

What are others in the industry doing?

MiniFAB is a privately-held contract engineering firm providing custom development and manufacturing of disposable polymer microfluidic and micro-engineered products. Implementing a cloud-based ERP software system was the only way to support its global expansion, by keeping infrastructure costs to a minimum and providing a nimble, accessible system anywhere in the world.

Annaliese Kloé, CEO of Klugo says “I have seen the effects first hand of software that just gets you by. Nowadays, the market is so competitive that businesses cannot grow without having a strong, core support system, so it was great that we could provide that for MiniFAB.”

Read the full story here. For more information about MiniFAB, visit their website.

MiniFAB Gain Business Transparency with NetSuite

MiniFAB Gain Business Transparency with NetSuite

 

As a business that has seen significant growth, MiniFAB have moved to underpin their future growth by implementing a cloud-based, integrated, advanced manufacturing solution, NetSuite.

Established in 2002, MiniFAB is a privately-held contract engineering firm providing custom development and manufacturing of disposable polymer microfluidic and micro-engineered products. With diverse geographical locations, MiniFAB’s growth into the US and Europe has paved the way for expansion into the global market, having worked on over 900 projects world-wide. A cloud based business management platform was essential to their global footprint, minimising infrastructure costs and providing a nimble, accessible system anywhere in the world. Dean Maxwell, MiniFAB’s newly appointed CFO says the business has operated successfully on many manual processes, however future expansion requires an integrated system which provides timely information to assist decision making. “Rapid growth has really been the key driver in re-assessing our systems and  processes to ensure we can keep aligned with our information and maintain the flexibility to innovate as a business,” he says. ”Reducing our current financial reporting timeline and gaining real-time visibility over the business financials were also key in our evaluation of systems.” “We were looking for a solution that was cloud-based and was able to scale with our growing business.” MiniFAB currently uses a construction based solution with several siloed databases and fragmented processes. The business estimates the potential to increase productive capacity by up to 20% across the business with the introduction of NetSuite. The Minifab solution provided by Klugo is unique to the Manufacturing industry as it is a complete, end to end Advanced Manufacturing solution that caters to PLM engineering, machine automation, advanced manufacturing, right through to the back end core Financials, CRM and inventory management. NetSuite’s Advanced Manufacturing Suite, together with NetSuite’s SuiteApp Arena is helping manufacturers innovate, ensuring global compliance and reduce costs through a cloud based platform that enables full visibility over their business, with real time business intelligence. Arena PLM, provides highly regulated medical device companies with a superior enterprise-wide approach to quality. This holistic quality solution offers visibility, cross-functional team collaboration, and long-term tracking of quality resolutions. The system allows manufacturers to meet FDA and other regulations, by managing information to show compliance as well as streamlining management of BOMs, design history files, device master records and change orders. It was Arena PLM’s decade long industry experience that gave MiniFAB assurance that the solution was the right fit for their business. Due to NetSuite’s status as a global market leader in ERP solutions and significant continued investment in the product’s development, the business was comfortable investing in the technology, knowing they could be rid of unwieldy upgrades in the future and benefit from over 30,000 global businesses using the platform. MiniFAB have been a customer of Klugo’s parent company Headland Machinery, however,  it wasn’t this connection that made MiniFAB choose to work with Klugo. Dean says it was the “honesty and openness from the Klugo sales team” that played a big part in the decision. “Klugo supported MiniFABs approach, listened to what we wanted, and they are prepared to make it happen,” he says. Dean was also impressed with the implementation methodology of the Klugo team. Annaliese Kloé, Director of Klugo says helping local manufacturers transform their business is extremely rewarding. “As the Managing Director of Klugo’s parent company Headland Machinery, I have been in the manufacturing space for about 30 years and have seen the effects first hand of software that just gets you by. It’s great to see that Klugo can provide an advanced manufacturing solution that is tailored to MiniFAB’s needs and help them on their path to growth.”

Transform your Manufacturing Business

Transform your Manufacturing Business

A one system solution for end-to-end process automation

Whether it’s technology you need to transform your manufacturing processes or software to automate your office through to shop floor, Klugo and Headland Machinery can help you streamline your manufacturing business.

Machinery Technology

Working with the best brands in the business, we have a host of machinery within CNC, Sheet Metal, Metal Fabrication, Storage, Waterjet and the software to support it. We have in-house experts who can review your business and find a suitable solution to help you achieve your objectives, whether it’s greater profitability, entering new markets or automation. Post-sale we can support you with our national team of engineers.

Cloud-based Business Management Software

We are industry specialists that enable wholesale distributors, manufacturers, and retailers to; simplify their business, take control of their operations and grow their revenue and market opportunities. The software we use to deliver this is NetSuite and NextService. Our business leaders and professional services team scope out your business requirements, implement and support you through the process. We help our customers: Simplify

  • One system to run your distribution business including financials, inventory, and customer information.
  • Reduce IT costs.
  • Eliminate duplicate processes, increase efficiency.

Take Control

  • Real-time, 360-degree view of your business.
  • Advanced Inventory & Order Fulfilment.
  • Be empowered to make the right decisions.
  • Reduce business risk.

Grow

  • Identify new channels and opportunities.
  • Decrease cost of doing business.
  • Grow revenue.

Read our customer case studies on companies that have transformed their business here.