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Eliminating Financial Penalties
2 min read

How to Eliminate Financial Penalties With A New ERP

You’ve failed to deliver your product on time, and the client isn’t just disappointed – they’re holding you accountable to the liquidated damages clause in your contract. Suddenly, your profitable opportunity isn’t so profitable anymore. 

No one wants to face this situation – but if you’re using the wrong ERP system, you could become unfortunately familiar with similar issues. Previously, we’ve covered how the right ERP solution can help you overcome challenges like excessive inventory and poor scheduling. In the final part of our three-part ERP series, we’re tackling our last two challenges: financial penalties and unmanaged sequencing. 

Financial Penalties & Liquidated Damages  

The only thing that stings more than an unhappy client is paying damages for breaching your contact and failing to deliver on time. That’s not to mention the steep fines you face if you fail to meet federal compliance regulations. Both of these financial setbacks hurt your bottom line, damage your reputation and make it more difficult for you to stay competitive in a crowded marketplace. 

ConvergentIS’ SAP S/4HANA Public Cloud for Manufacturing solution gives you end-to-end visibility into your supply chain, so you can ensure that you’re consistently meeting standards and avoid the consequences of noncompliance. We also eliminate the process roadblocks that stop you from delivering a quality product in accordance with your contracts so that liquidated damages can be a thing of the past.

Unmanaged Sub-Assembly & Sequencing 

Optimized sub-assembly supply and production are critical for manufacturers looking to maximize their margin, ensure on-time delivery, eliminate waste and reduce on-hand inventory levels. Unfortunately, most ERP solutions don’t handle the challenges of scheduling and sequencing production of lower-level dependent parts properly, which holds you back from reaping the full benefits of an optimized lower-level through a finished good production process.  

 SAP S/4HANA Public Cloud for Manufacturing’s predictive MRP engine allows you to automatically optimize the required raw materials, logistics, scheduling, and sequencing of complex multi-level manufacturing, all while ensuring parts are available to the customer when they’re needed – reducing your lead time and supporting a lean manufacturing process with a solid margin. 

Put the Pieces Together with SAP S/4HANA Public Cloud for Manufacturing    

  Are you tired of dealing with your crumbling legacy ERP? Aging systems can’t push you into the future and help your business run the way it should. ConvergentIS works with manufacturers to deliver a comprehensive, intelligent solution to ERP challenges. Our SAP S/4HANA Public Cloud for Manufacturing solution offers a strategic approach to large migrations and total system overhauls.

Contact us today to bring your business to the next level with a first-class ERP.

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