IT Systems Operations and Best Practices for Disaster Prevention and Recovery
IT systems are the most sensitive systems that are prone to failure and disaster. The risks that can cause breakdown of the systems and loss of data are many. As the data is something that is very important for the existence and continuity of the business, every Organization needs to have a proper Disaster Recovery […]
Building a Business Process Improvement (BPI) Model
Embracing Business Process Improvement program is the ideal way for Organizations to make that leap to the next level and build competitive edge. Implementing a BPI program gives the Organization several direct and indirect benefits and advantages. It helps the Organization get rid of the redundancies, reduce dependence upon people and eliminate wastage as well […]
Strong Medicine: A Case Study of the Indian Healthcare Sector
The Paradox of the Indian Healthcare Sector For a country that prides itself on being a welfare state that looks after its many poor and underprivileged citizens, India spends surprisingly less on healthcare as a percentage of GDP or Gross Domestic Product than other developing and developed countries. Indeed, India is among the countries with […]
Step 3A: Choosing the Correct Control Chart (Discrete Data)
If the data type that needs to be charted is discrete, then it must fall between one of binary or count types. As the name suggests in case of binary distribution, there are only two possibilities, success and failure, defective and not defective, whereas in the case of count type distribution there may be more […]
The Changing Role of the CEOs in the Digital Age and What It Means for Them
The Changing Nature of Capital Allocation and Capital Expansion With the Digital Age well and truly upon us, the changes brought about due to the advent of this era have been many and multifaceted. Right from newer work methodologies such as Agile and the rise of the Gig Economy, the Digital Age has left no […]
When a management student passes out from college and is absorbed into any business organization, if he is lucky he will get to spend a few months in getting orientation in all departments before being assigned to a particular department or function at the end of the induction program. Those who get to be assigned to working in Supply chain or inventory operations of the company are likely to learn very important lessons that is likely to give them an edge later on when they grow in ranks and take up higher and different responsibilities. Inventory management and supply chain operations both on the Raw material as well as Finished Goods side are very critical to the success of sales and marketing besides being major contributors to the profitability of the company.
Sales and Marketing can be said to be efficient not when they build sales leads and convert them. But the efficiency of being able to reach the right Finished Product to the Right Customer or Market and the Right Time is what determines the Success of S & M. Inventory is the other function that is critical to the Sales.
An efficient inventory management will mean carrying balanced inventory and functioning at optimum efficiency as well as ensuring control over inventory carrying costs. Any increase in efficiency of inventory holding or operations impacts bottom line directly. Supply chain, having to do with movement of inventory to and from plant to the markets, holding inventory en route at various points and managing overall inventory logistics is also very critical both to inventory management as well as the Sales Function.
Once the trainee has understood the operations models and seen how the entire chain of functions involving multiple internal departments, systems, documentation as well as external vendors, third party service providers and the governmental organization all work in tandem to make the business a success, he would have pretty much understood the secret to building successful business.
Time and again we have seen that the General Managers as well as the Marketing Managers who have been heading their departments in the companies have made headway and achieved breakthroughs in terms of marketing their products using innovative supply chain distribution strategies and thereby have been able to impact the bottom lines substantially. Direct marketing, E marketing, Network marketing are all new sales concepts but if you have to incorporate these into your marketing plan, then it becomes necessary first for you to be able to understand and define the supply chain and inventory strategy to service these delivery channels.
An inventory strategy can be designed on paper but then to be able make it operational, one needs to have a realistic exposure and experience to the field operations and have a hang of how things work on the ground. Inventory management and operations involve multiple agencies and service providers combined with multiple systems that need to be interfaced. Sales process has to be married to Supply Chain and logistics process, which in turn needs to drive the inventory operations process in the back end. All these different modules need to be working in tandem and seamlessly to deliver products across markets in time.
Any aspiring manager who wants to head an organization as General Management or Marketing Manger would have to first get first hand experience of these brass tacks that will help him later to be able to devise practical and achievable strategies to take his business ahead.
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