SAP Business One Empowers SME Manufactures
                     SAP® Business One Empowers
SME Manufacturers
Publisher- Silver Touch Technologies UK Limited
Editor- 
© Copyright 2016 Silver Touch Technologies UK
All rights reserved. No part of this Guide shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, 
mechanical, photocopying, recording, or otherwise, without written permission from Silver Touch Technologies UK
Introduction
Manufacturing industries continue to be the back bone of economies across the world. They are one of the biggest players 
that impact global economy in terms of imports and exports. 
Competition is greater than ever before. To succeed, manufacturers have to demonstrate a higher value proposition to the 
market. Whether it's through faster response times, higher quality products, or exceptional customer service and relation-
ships, manufacturers are being asked to do more. To maintain a competitive advantage, manufacturers require flexibility in 
their operations and must continually drive innovation—not only in the marketplace but also in how they do business.
Manufacturers have to be efficient in time management, resource handling, product development and new product introduc-
tion to meet the ever changing and demanding needs of the customers. 
Like any other industry section, there is always an urge to stay one step ahead of the competition and in order to achieve this, 
manufacturers rely heavily on research and development to bring out new products and services.  Innovation is critical for 
manufacturers to be best in class, after all ‘Manufacturing is the "place" where projects and innovations get materialized!’ 
Challenges Faced by The Manufacturing Industry
There is little doubt the UK manufacturing sector is facing some tough challenges, but with those come opportunities. To take 
advantage SMEs need to ensure they are competitive, efficient and provide the very best in customer service. 
Manufacturing is not only about producing a product at a lower cost; it is about finding ways to provide customers with 
innovative new products, attract new customers and strengthen the loyalty of your existing customers. You have to be aware 
of the latest trends and adapt to the continuous changes within the market place.
Skills
The biggest challenge for UK manufacturers is finding skilled technical staff. At a time when the UK sector has seen a number 
of high-profile closures, the ramifications of not finding enough skilled workers among SME businesses to meet demand is 
particularly poignant; over a quarter of UK manufacturers who took part in a recent survey said “late delivery on a project 
would result in losing that customer”.
Product development and Innovation
Consumers always look for the next big thing in the market, and they want it now! Such a fast paced market expects manufac-
turers to stay relevant with the need to keep up with product development and innovation. Companies have to channel their 
resources in the right way to keep producing new products and upgrade their already existing products. By doing so, they can 
stay in the market without having to compromise on quality or delivering on time. 
Innovation is vital for the company to stay in the competitive market scenario. Irrespective of the size of business, successful 
manufacturers require vision, execution, and a powerful and scalable business platform. They need to find innovative ways 
that are not solely based on price, but can also help them to effectively stay in business and enhance profitability. They also 
have to place importance on reducing operational costs, improving efficiency, ensuring world-class customer service and 
collaborating with suppliers.
Order Delivery on Time
The issue of ensuring orders gets delivered on time appears to be exacerbated by a change in demand put on manufacturers 
– in particular a switch away from large bulk orders towards a growing trend for smaller ones. In a recent survey over half 
(51%) of UK SME manufacturers said customers are increasingly requesting orders in “smaller series”, This presents 
challenges for UK businesses owners – top of which, is trying to keep costs down, followed by then getting the price right.
Costs
Manufacturers are having to ensure their material and processing costs are accurate whilst ensuring invoices are paid on time 
and product innovation initiatives are being optimized.
Regulatory Bodies and Transparency
In today’s commercial set up, regulations and guidelines, pertaining to the various sectors have become a norm. There exists 
a set of rules for every industry, and manufacturing is no exception. The list seems to be growing, and in doing so, placing ever 
increasing pressure on companies to maintain their business goals, whilst ensuring they observe the guidelines imposed on 
them. It has also become mandatory for the companies to keep their work transparent, right from product inception to the 
supply chains. Some of the areas of compliance bearing on manufacturers directly or indirectly are:
» Product safety
» Health, safety of the workers and the environment
» Data protection
» Anti - corruption
» IT security
» Labour laws
In terms of addressing some of the challenges, UK manufacturers believe technology holds the key and is going to have a 
major impact on the competitive landscape.  Among UK SME manufacturers, those who have invested in business software 
solutions have saved on average six hours a month on financial administration – a considerable reduction given that the UK 
industry average is 11 hours per month on such tasks.
SAP® Business One for Manufacturing
Today's business environment is shifting from the traditional model of simply manufacturing and selling products. Supply 
chains are now global in nature, customers have more options for where to get products, and they need their suppliers to be 
true business partners. Customers expect these partners to not only provide high-quality products, at the right time, but also 
to anticipate their future requirements and identify changing market trends, whilst meeting and exceeding their needs.
This means that manufacturers and distributors need easy-to-use, flexible solutions to more effectively manage their 
business. SAP®  Business One addresses these needs with a powerful, flexible, and integrated solution that also enable users 
to deliver amazing customer experiences!
Overview
The SAP®  Business One application offers an affordable way to manage your entire business – from sales and customer 
relationships to financials and operations.
Designed specifically for small businesses, SAP®  Business One helps you to streamline processes, act on timely information, 
and drive profitable growth.
SAP®  Business One is designed with flexibility in mind. Whether it’s deployed in your office or in the cloud, you can access it 
on the move using our SAP®  Business One mobile app and as your business grows, you can customize and extend it to meet 
your evolving needs.
A single, integrated solution, it provides clear visibility into your entire business and enables complete control over every 
aspect of your operations. It captures all critical business information for immediate access and use companywide. SAP®  
Business One delivers what you need to manage your key business areas and decisions.
With an established global presence, with over 41,500 customers’, SAP®  Business One is available in 25 languages and in 41 
different countries. It offers a standard set of tried and tested business solutions to meet the needs of a fast growing      
manufacturer.
SAP®  Business One customers have noticed planning time reduce by 50% and improved responsiveness to changes in 
demand. Other benefits include higher utilization of machines and labour, reduced lead time and ability to estimate accurate 
and reliable profit margins.
Manufacturing organisations’ have invested in SAP®  Business One for the following reasons:
»  Increased utilisation of machinery and labour
»  Reduced lead time
»  Reduced planning time
»  Improved responsiveness to demand changes
»  Predictable delivery times
»  Ability to estimate accurate order margins
»  Reduced held stock and capital expenses.
»  Increased customer satisfaction
How SAP®  Business One Supports Manufacturers
Help Gain Competitive Advantage 
SAP®  Business One offers a simple yet powerful planning system so you can cut costs, improve processes, and increase 
revenues. With SAP®  Business One your manufacturing software is integrated with your accounts and CRM functionality in 
one complete system, enabling you and your management team to gain real insight, visibility and control over key processes. 
Key Benefits Key Capabilities
»  Improve supplier and customer relationships  »  Define a multi-level BOM for complex products
                with just-in-time production process planning
»  Instantly check the availability of all products  
»  Free up your capital with reduced inventory and                     or materials
                more accurate forecasting
»  Easy tracking of all material transactions and  
»  Raise customer satisfaction levels with                      costs
                improved quality, capacity and material control
»  Create standard, special or disassembly      
»  Improve efficiency, make savings and cut costs  production orders
»  Convert production orders to work orders
»  Convert production orders to purchase orders
»  Use the MRP wizard to create demand   
 forecasts and avoid stock-outs
Help Streamline Your Supply Chain 
The integrated warehouse and inventory management tools in SAP®  Business One enable you to manage your supply chain 
by providing reliable information about inbound and outbound shipments as well as current inventory levels. With the 
advanced functionality available with SAP®  Business One, you can access essential buying information, monitor perfor-
mance, improve customer service and operate more profitably.
Key Benefits Key Capabilities
»  Make efficiency gains with automated     »  Keep track of product inventory, quantity at   
 processes  each warehouse, movement history, and stock  
 levels
»  Improve customer service with on-time   
 delivery and fewer shortages and stock-outs »  Various costing models; multiple units of   
 measure and pricing
»  Get control of your supply chain with accurate  
 reports and forecasts »  Goods receipts and issue control; stock   
 transfer tracking; consignments, drop-ship and  
»  Reduce inventory costs with improved  other orders.
»  visibility, control and planning »  Easy report creation with data that is regularly  
»  refreshed; display in various report formats or   Improve business insight with powerful   
 as dashboards
 warehouse and inventory reporting tools
SAP®  Business One Features Summary
Finance Sales
Handle financial transactions including general 
Easily create quotes, customer 
ledger, account set up and maintenance, 
orders,deliveries, update stock balances,and 
journal entries, multidimensional cost centres, 
manage all invoices and accounts receivables.
foreign currency adjustments, and budgets
Service Materials Requirements
Planning (MRP)
Optimise the potential of service departments, 
Schedule and manage items for production or 
providing support for service operations, 
purchasing based on a variety of criteria, with 
service contract management, service planning 
this simple yet powerful planning system that 
and tracking of customer interaction activities.
drives efficiencies for production planners and 
buyers
Purchasing Intercompany Integration
Manage supplier transactions such as issuing Manage intercompany transactions across 
purchase quotes and orders, updating stock, multiple entities. Share resources and informa-
calculating landed costs for imports, handling tion between a companys’ physical and virtual 
returns and credits, and processing payments locations, enabling consolidated reporting.
CustomerRelationship Real-time Insight
Management (CRM)
Gain real-time access to information and a way 
Control all of the information on customers and 
to explore it in detail without IT assistance, 
suppliers including profiles, contact summa-
supporting better and faster decision-making. 
ries, account balances, and sales pipeline 
Increase employee productivity by putting your 
analysis.
users in control of information.
Stock Control
Handle stock levels, item management, 
price lists, special price agreements, 
transfers between warehouses, and stock 
transactions.
Summary
SAP®  Business One is a complete solution for business management. It covers all critical business functions in a single 
system. Easy accessibility of up-to-date information on every aspect of your business such as: material resourcing, process 
scheduling, purchasing, pricing, stock levels, etc. 
SAP®  Business One solution comes at an affordable price and is undoubtedly best suited for manufacturers to boost their 
overall performance, productivity and profitability. SAP®  Business One delivers rapid time-to-value, enabling small 
businesses to grow, using streamlined operations, respond quickly to customer needs, facilitating  closer and more loyal 
customer relationships.
Why Silver Touch?
Silver Touch globally has been a partner of SAP®  for over 5 years and has implemented over 90 solutions in 15+ industry 
verticals. Our services include SAP®  Business One license procurement, installation, implementation, customisation, add-on 
development and training and support. We have a team of technical and functional professionals that can help you in execut-
ing all your manufacturing business needs. We understand your manufacturing business, its processes and its requirements 
before deploying the solution, thus offering you bespoke services. 
We ensure that our manufacturing clients can leverage the full potential of the unique features of SAP®  Business One and 
have access to its latest features, giving them the advantage of our world-class consulting services. We also provide seam-
less post-deployment support and offer prompt resolution to all your queries.
For further information or to arrange a demo,
please contact us on 44 (0)127 736 4689 or  email [email protected]
THANKS FOR READING
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