Cash flow is the lifeblood of any business and inventory management is the plasma to that lifeline. Inventory Management to keep accurate and minimize on hand to sales is critical to cash flow that feeds all critical elements for any business, including;
1. Looking for revenue growth either by increasing activity with current customers , or mining new opportunities in their respective industry.
Service & Quality
2. Focusing on providing quality product and excellent customer service to all its clinets
3. Expanding its product portfolio and menu offering to continually differentiate itself in the industry the firm competes
1. In a firm it is not untypical when asked “who is responsible for maintaining inventory integrity and accuracy “for either no one or everyone to respond” , which translates to actuallyno responsibility in the company.
2. Processes rely on individuals as opposed to being systemic and well understood and executed throughout the organization.
3. Physical inventories are viewed as a “count” as opposed to a reconciliation against the company’s perpetual inventory and books & records.
4. ERP item master data information is not maintained , and transactions go unreconciled.
5. There is not an easy to manage physical layout in place to make inventory management and reconciliation easy to manage and maintain.
6. Obsolete products are “pushed” to the side without being dealt with resulting in poor facility utilization and less than optimum cash flow.
This article is intended to assist you in understanding supply chain management. Supply Chain Management includes all the activities a business employs to keep its products and services moving efficiently. The velocity of a firm’s supply chain is core to its cash flow lifeline. Businesses from manufacturers , wholesalers & retailers , distributors etc. use supply chain principles to plan , assemble , store , ship , and track products from the beginning to the end of the supply chain.
Supply Chain is recognized as one of the key organization functions along with sales / marketing , R&D , and finance to the point that supply chain execution is treated as competitive point of difference.
Supply Chain Management encompasses collaboration & integration with suppliers , distributors / manufacturers (internal & external) , and customers . The success of a supply chain and the benefits it can provide is predicated on the strength and efficiency of the linkages between each of the key functions , including:
“ Supply Chain is the Execution Music of a company’s sales and marketing effort”
There is a need and skills gap that has evolved for employers that require associates to have multi functional , critical thinking skills. Multi Level communication and leadership skills are more important than ever in this highly competitive , global environment to every organization.
Businesses are looking for supply chain professionals to continuously increase the organization’s capability by reducing costs , improving the efficiency of relationships internal and external , and increasing capacity all at the same time.
Supply Chain Management professionals meet the growing demand and challenge of constant product profile updates while at the same time improving cash flow.
If your business is considering upgrading your supply chain management, please contact us