A non-value added task is one that generates no return on investment. These activities do not benefit the customer or the company directly— they can even have a negative return. With this in mind, why do so many employees have to waste their time with them every day? Their companies are not using an ERP system, so they are not automating processes, integrating data or optimizing their workflow. Whether its in manufacturing, inventory or accounting, these non-value added activities waste employee's time and slow down production. 

Tracking down documents
One of the more complicated aspects of cost accounting is charging every task accurately. If that's not done correctly, employees may have to search stacks of invoices or purchase orders to find the right one. ERP systems automate the invoicing process so records are transparent, searchable and easy to track. The automated system processes invoice and purchase orders automatically and eliminates human error. By using the right cost accounting software, your records will be accurate and it will be easy to extract any information you need. 

Wasting production resources
Whether it's a defective product or an idle machine, a workflow that is not optimal is wasting resources. Manufacturing business software allows you to view of the full supply chain, assess each task in real-time and better prepare for capacity and labor requirements. A properly deployed ERP system can apply industry best practices to your workflow so you're running as efficiently as possible. 

Translating between departments
If each department is keeping its own records in its own system, assessing data from multiple groups can be challenging and wasteful. Maintaining a central database for all information makes sure that the data is relevant and the same standards are applied throughout the company. This minimizes the risk for silos to block information flow between departments, which results in duplicate information. 

As Alyssa Kadansky of Inddist.com, a manufacturing and industrial distribution magazine, notes "Cost savings is a guaranteed benefit of an automated ERP solution."

In order to compete with larger competitors, small businesses need to cut costs and eliminate non-value added activities. Implementing an ERP system like Microsoft Dynamics NAV can help eliminate wasteful tasks, and let your business reach its full potential. Accent Software has been implementing and servicing Dynamics NAV for 15 years. Contact us to learn more about how we can help.