To keep a business running smoothly, it is important to fill various positions with one or more people that can track and plan. The positions that are most critical when you sell a product are related to supply chain planning. This is essential to the business because it makes sure everything is done well from obtaining raw material or products and getting them packaged and off to the customer. If any part of the system breaks down, the system will come to a halt. This means there will be lost sales and wages, costing an enormous amount of money.
A very critical position in the company is the purchasing manager. This person is in charge of making sure everything from raw materials to pens are purchased at the best prices without degrading the value of the product. They will make sure everything that needs to be bought is and is tracked appropriately in order to stave off financial ruin.
The factory needs raw materials or parts to build the products. If the factory runs out, the process stops quickly. Employees will be standing around getting paid or laid off. In both cases, you will experience costly lost wages. Over time, those employees may go elsewhere and you'll have the expense of training new ones.
Inventory management is also critical. This position keeps track of what is in stock to be used or sold. Most companies perform a monthly or weekly inventory to keep track. Some may need to do a daily inventory. Having a tracking system in place will help reduce the effort needed, but a manual count should still be done at least monthly in case the system loses track or material goes missing.
The warehouse manager works with the inventory. Not only will they know how much of anything they have, but will be able to easily locate it. Much like a store knows which shelves products are on, the warehouse staff will know the same information about raw materials and parts for assembly. This will get the needed materials to the factory quickly and efficiently, saving time and money.
Transportation is a function whether you have your own trucks or not. If you have a fleet, then you will need fleet management. If you ship using other carriers, then you need someone keeping track of where the products and materials are in the system to ensure they reach their destination. It is not enough to just toss the package in the mailbox and not track its progress.
Customer service is part of the supply chain because they are the face or voice of the company. When a customer buys from you they need to be able to reach out to someone if the product doesn't arrive or is damaged when it does. Having people in place to manage this aspect will keep your good reputation intact.
Planning how much you need is important to prevent overstocking and running out. Having too much product is just as costly as having too little. If you have product taking up warehouse space because there is too much, it will cost you money to store it. Having too little will cost you sales and your reputation. The demand planning position will need to analyze trends to make sure just enough is on hand at any moment.
Customers expect to get their purchases in a timely manner. Running out of product after the sale is not acceptable and can cause a chain reaction of bad reputation reports that end up costing new customers and money in the short and long term. Making sure that every step is covered is part of owning and running a business.
A very critical position in the company is the purchasing manager. This person is in charge of making sure everything from raw materials to pens are purchased at the best prices without degrading the value of the product. They will make sure everything that needs to be bought is and is tracked appropriately in order to stave off financial ruin.
The factory needs raw materials or parts to build the products. If the factory runs out, the process stops quickly. Employees will be standing around getting paid or laid off. In both cases, you will experience costly lost wages. Over time, those employees may go elsewhere and you'll have the expense of training new ones.
Inventory management is also critical. This position keeps track of what is in stock to be used or sold. Most companies perform a monthly or weekly inventory to keep track. Some may need to do a daily inventory. Having a tracking system in place will help reduce the effort needed, but a manual count should still be done at least monthly in case the system loses track or material goes missing.
The warehouse manager works with the inventory. Not only will they know how much of anything they have, but will be able to easily locate it. Much like a store knows which shelves products are on, the warehouse staff will know the same information about raw materials and parts for assembly. This will get the needed materials to the factory quickly and efficiently, saving time and money.
Transportation is a function whether you have your own trucks or not. If you have a fleet, then you will need fleet management. If you ship using other carriers, then you need someone keeping track of where the products and materials are in the system to ensure they reach their destination. It is not enough to just toss the package in the mailbox and not track its progress.
Customer service is part of the supply chain because they are the face or voice of the company. When a customer buys from you they need to be able to reach out to someone if the product doesn't arrive or is damaged when it does. Having people in place to manage this aspect will keep your good reputation intact.
Planning how much you need is important to prevent overstocking and running out. Having too much product is just as costly as having too little. If you have product taking up warehouse space because there is too much, it will cost you money to store it. Having too little will cost you sales and your reputation. The demand planning position will need to analyze trends to make sure just enough is on hand at any moment.
Customers expect to get their purchases in a timely manner. Running out of product after the sale is not acceptable and can cause a chain reaction of bad reputation reports that end up costing new customers and money in the short and long term. Making sure that every step is covered is part of owning and running a business.
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You can find a summary of the advantages you get when you use professional supply chain planning services at http://www.adexa.com/solutions/supply-chain-planning right now.
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