Sales representatives and project managers within the steel and metals industry likely know their customers very well. In this business sector, customers often have very precise specifications and needs. Knowing customer needs is important; however, are your customers as profitable to your business as you think? At the surface, fulfilling customer orders shows that business is good. However, it may be time to dig a little deeper to see if these customers are fulfilling your profit goals.
A busy production line and well-stocked warehouse are not necessarily reliable indicators that your business is doing well. Being busy is great, but it doesn’t always equate to healthy profits. Businesses in many industries, the steel and metals industry included, can easily become focused on taking on new customers and overlook their profitability. The bottom line is that not all customers or customer projects will lead to profits and that is something you don’t want to discover after the contract is signed.
Preparing a proposal or quote in the steel and metals industry is complicated from the very start. Accounting for the four tenants of costing: material cost, direct and indirect labor cost, overhead, and outside processing costs, requires a great deal of data which is often buried in disparate software. Get closer to your customers and profit margins by replacing inefficient software systems with a solution designed for businesses in the steel and metals industry.
Gain Financial Insight and Fulfill Profit Goals With RealSTEEL
RealSTEEL is a comprehensive business management solution, specifically designed for steel service centers, metal fabricators, coil slitters, pipe and tube processors and other businesses in the steel and metals industry. This integrated solution provides robust accounting and financial management functionality, which delivers the data and insight needed to determine whether customers and their projects are yielding expected profits. Dashboards and other built-in business intelligence features makes it easier to monitor and analyze key financial metrics, including revenues being generated from products and services. Use this insight to determine which operations are productive and profitable and which areas need improvement. You can also monitor common accounting data, such as days outstanding or other credit management metrics. Identify which customers are good payers and which may present financial risk.
Know your customers and fulfill profit goals by replacing inefficient accounting software with a better solution. Contact The Wolcott Group to learn how RealSTEEL can provide greater control and insight over accounting processes and financial management.
By The Wolcott Group, providers of RealSTEEL, a ‘real world’ solution for the steel and metals industry.