Maintaining Operational AND Financial Health

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 once with our tax accountant, he asked about some financial metrics. To his surprise, I had the numbers at my fingertips. “That’s impressive”, he said. “Many other small manufacturers I work with typically don’t track that kind of information”. (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.

Tracking financial performance also helped PlastiCert in submitting and winning our four Top Shop Awards!

During the last big recession, our in-boxes were flooded with 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. Through business associates we can assess our metrics against other injection molders (and we are doing extremely well!).

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 OEM customers can worry about other suppliers and issues. PlastiCert has got your back when it comes to molds, molding, and value add services. Need less worry in your business life? Give us a call!