Manufacturers are all very familiar with operations KPI’s (key performance indicators). Tracking performance to cost standards, scrap, quality metrics, On-time Delivery, and others are second nature.
Talking with our tax accountant the other day, he asked about some financial metrics. To his surprise, I had the numbers at my fingertips. “That’s impressive. Many other small manufacturers I work with typically don’t track that kind of information”, he said. (He was also impressed with the financial number I gave him!)
Fact is, we have tracked the Financial KPI’s for many years. PlastiCert worked our way through the 2008 great recession (with a change of ownership). Knowing where we sit financially is not just for our benefit. That activity is part of our risk management program for our customers’ benefit.
In the years 2007 to 2011, our fax machine practically wore out printing auction notices. Poorly managed companies that had been too highly leveraged or had inadequate cash reserves to weather the storm.
Using our ERP system (which includes financial data), PlastiCert monthly tracks financial metrics. We plot Current Ratio, Quick Ratio, Days Sales in AR, Days of Inventory, Net Sales to Inventory, Inventory Turnover, New Sales to Total Assets, Current Liabilities to Inventory, AP to Net Sales, and many others.
As a full service provider to our many mold and injection molding customers, our job isn’t just to provide immediate service in engineering and molding, but to be here for the long haul.
In a time of global financial uneasiness, our customers can worry about other suppliers and issues. PlastiCert has got your back when it comes to molds, molding, and value add services.