Wednesday, 31 December 2014

Who are the Participants in the Supply Chain? – The Distributors

Distributors, also known as the wholesalers, are accountable for taking inventory from producers and delivering it to customers. They usually sell products in bulk to the other businesses which comes to a larger quantity than selling to the individuals and fulfill the “Time and Place” function by delivering products to when and where customers want.

Distributors can also control the fluctuations in product demand through stocking inventory, sales works and customer service. Some distributors would take the ownership of significant inventories. Apart from the product promotion and sales, they also need to manage inventory, operate warehouses, transport products and provide customer support and post-sales service.

For those who never take ownership but broker products between the producers and customers, they mainly perform the functions of promotion and sales. Nevertheless, both types of distributors need to continuously track and satisfy the customer needs.

Tuesday, 30 December 2014

Who are the Participants in the Supply Chain? – The Producers

Producers or manufacturers are responsible for making tangible (raw materials and finished goods) and intangible products such as music, entertainment, software or designs.

Producers of raw materials focus on extracting materials such as farming, mining ores, drilling for oil and gas; meanwhile, producers of finished goods focus on assembling the products. These industrial producers tend to move to the countries with lower labour costs. Producers that produce service which is one of the intangible items are commonly located in more developed countries such as North America, Europe and some parts of Asia.

Monday, 29 December 2014

The Evolving Structure of the Supply Chain

Participants of the supply chain continually making decisions in order to maximise its performance in dealing with the five supply chain drivers through different methods such as in-house, outsourcing and partnerships.

Back in the industrial era when the market was slower, companies practice vertical integration by managing everything in-house.  The focus was on gaining efficiency through greater economies of scale.  These days, the markets move quicker than ever before, companies found that they are no longer responsive enough or able to produce the variety of product in demand.

Companies now focus on their own expertise within the chain management while outsourcing to other suppliers to cover the rest. With the new practice of virtual integration leading the way, the use of vertical integration has become far less common due to globalisation and the competitive nature of the markets, along with technological changes. It is more efficient for multiple companies to collaborate together, with each of the companies focused on their core skills, doing what they do best.

Saturday, 27 December 2014

A Look at the Retail Industry in 2015

It is anticipated by industry experts that the retail industry will become more complicated in 2015 due to the changing demographics, smaller household sizes, more educated consumers and rise in digital platform among others. In order for companies to be successful and become profitable, it is necessary to adjust their existing business models and approaches in order to embrace and satisfy the future consumer’s needs.

Gone were the days of simply mass appeal approach of the 1980’s but instead, the retailer must be able to tailor its offering to selected customers to win and foster greater customer loyalty. Here’s a look at some of the main features we expect to see in the retail industry over the next twelve months.

Collaboration – Retailers and suppliers are working toward becoming better trading partners by driving toward greater efficiency and better goal alignment through the sharing of details and processes on product launches, trade promotions, inventory management and operations in the supply chain.

Demographics Shift – Emphasis “youth” and “vitality” and equipped with increased financial resources, the Baby Boomer will approach the age 70 in 2015. Companies will need to look at adapting a product to meet their post-retirement needs. The second major challenge will be the group of Generation Y as they reach their prime years.  They are more diverse in their spending, buying and shopping habits and are interested in entertainment, recreation and multichannel shopping.  As well, there is a greater emphasis on multiculturalism. Companies will need to address the different tastes, customs, interest and spending habits in their product offerings.

Evolving Consumers – New consumers will be harder to grasp with the change in consumer’s value proposition.   They are more focused on purchase personalisation, and are more proactive in their purchasing decisions. Green friendly products and socially responsible retailers/manufacturer are becoming more important to them.

Outsourcing Strategically – Flexibility is required for the changes in 2015 retail environment. Retailers will continue to outsource basic goods but companies will also be adopting outsourcing approaches for non-core competencies such as business process, talent sourcing, and product and software development. This will allow businesses to become more cost effective while allowing management to focus on key business issues, allow better understanding of the different cultures and form new alliances.

Retail Outlets– Global markets are growing and shopping centres are continuing to cater to their consumers by becoming more experiential; eating, entertainment and “living” the shopping experience is the main focus next year. Retailer’s ability to transfer their business practices to new territories will also become important.

Technology – Technology is already being used to improve operations. In the future technology will become more important and used more efficiently to manage business intelligence. Customer data will become more personal, real time information shared and this information will be a major asset. Security and privacy will become more essential due to this data sharing.

Friday, 26 December 2014

5 Areas Where Companies Can Make Decisions to Benefit the Supply Chain – Information

Companies need to make informed decisions on the four key supply chain drivers: location, inventory, production and transportation. Accurate information can provide the bridge between the activities and operations in a supply chain and help maximise its profitability.  The two purposes for the use of information are as follows:

Daily activities coordination – Data on the product supply and demand can help companies make informed decisions on weekly production schedules, desire inventory levels, which transportation route to take and where to stock inventory.

Forecasting and Planning – Information can also help with strategic forecasting and planning in a company to ensure they meet future demands.  It allows companies to plan their monthly and quarterly production schedule, timetable, provide direction for new market expansion or facilities and market exit.

However, there is a trade-off between the responsiveness and the efficiency, which involves the benefits of information and the cost of acquiring that information.

Thursday, 25 December 2014

5 Areas Where Companies Can Make Decisions to Benefit the Supply Chain – Transportation

Transportation is the movement of all the materials, from their raw state to the finished products in the different facility of the supply chain. There are six types of transport that are commonly chosen:
  1. By Ship – This is cost efficient and very slow option.  Locations need to be situated between different waterways, canals and harbours.
  2. By Rail – This is very cost efficient and slow option. It is restricted by the location of the rail lines.
  3. By Pipelines – The pipelines very efficient and are restricted to commodities including oil, natural gas and liquids.
  4. By Trucks – This is a quick and flexible option. Transport is not restricted but cost fluctuates according to fuel and road conditions.
  5. By Airplanes – This is the most expensive, very fast and responsive option but is limited to reach location with appropriate airport facilities.
  6. By Electronic – This is fastest, most flexible and cost efficient option but is limited in moving data, electric energy and products that are made of data.
The supply managers must decide on the best mode of transport and the best routes to use to move the products.  It is important to keep in mind that the transport networks should concentrate responsiveness for higher value products such as electronic component, pharmaceuticals while lower value product such as bulk commodities should focus on efficiency.



Wednesday, 24 December 2014

5 Areas Where Companies Can Make Decisions to Benefit the Supply Chain – Location

The different decisions related to operational set up of different geographical facilities in the supply chain all refer to location.  When making a location decision, it is important to recognise the trade-off to whether or not to centralise or decentralise activities.

Factors such as the cost of facilities, labour, workforce’s skills, infrastructure, taxes, tariff and supplier and customer access require long term planning and funds.  The decision will impact on the cost and performance characteristics of the supply chain.  By centralising operations in fewer locations, companies can gain economies of scale in becoming more efficient but by decentralising to multiple locations closer to customers and supplier, the operation can be more responsive.

Tuesday, 23 December 2014

5 Areas Where Companies Can Make Decisions to Benefit the Supply Chain – Inventory

The inventory including everything from the raw materials, the work in progress and the finished goods are held by manufacturers, distributors and the retailers within the supply chain. There are three basic decisions that must be made in relation to the inventory when looking at the creation and holding of inventory.
  1. Cycle inventory – the amount of the inventory that is required to satisfy the demand in the time period that falls between the purchases of the product. The trade-off of purchasing in large lots comes with the reduced cost of ordering, more competitive pricing due to larger product consumption and an increase carrying cost of the cycle inventory.
  2. Safety inventory – the buffer amount that is held to deal with the uncertainty of the demand.
  3. Seasonal inventory – this is the inventory that is generated before an increase in demand that happens at a certain time of year. For example anti-freeze sales increase during winter season.


Monday, 22 December 2014

5 Areas Where Companies Can Make Decisions to Benefit the Supply Chain - Production

There are two approaches in manufacturing and factories are built to be able to accommodate one of them, either the product focus or the functional focus. The product focus built factory will perform different operations that are necessary to make a product, from the fabrication to assembly.  Functional focus on the other hand is focused on performing a handful of operations that only make a small group of parts or assembly. These functions are then applied to making many more products.

Warehouses have three main approaches, which are as follows:
  • Stock keeping unit – The SKU storage is a traditional approach that is easy to understand and store products since product type are stored together in one location.
  • Job lot storage – Storage of different products are allocated according to customer’s type or related job. Picking and packing in this approach become more efficient but requires more storage space than traditional SKU.
  • Crossdocking – The facility houses a process where the different suppliers unload their different products in large quantities. Once at the facility the large lots are split into smaller lots and they are quickly loaded onto outbound trucks depending on the needs of the day. Those trucks then deliver the smaller lots to the final destination.

Friday, 19 December 2014

How the Supply Chain Works

We define the supply chain management as things that influence the supply chain to get results. The supply chain works by:

The coordination of the traditional functions along with the functions and tactics across businesses to improve the performances of each company within the supply chain.
The supply chain management is the coordination involved in production, inventory, location, information and transportation across several participants in the supply chain. They work to achieve a responsive and effective supply chain that serves the market they’re in.
Traditional logistics are the different activities that happen in an organisation. A supply chain is a newer concept dealing with a wide network of companies that work together towards the end goal of delivering a product to market. Logistics involves:
  • Procurement
  • Distribution
  • Maintenance
  • Inventory management
The supply chain includes many more activities along with the ones that logistics focuses on. The additional activities include activities such as:
  • Marketing
  • Product development
  • Finance
  • Customer service
Effective supply chains will make improvements internally for the company and also for the customers.  The goal is to increase the throughput while reducing inventory costs and the expense of the operating costs.

Thursday, 18 December 2014

What is the Basic Pattern to the Practice of Supply Chain Management?

There are many underlying concepts that guide the practice of supply chain management. Many of these concepts have been in existence for hundreds of years. It wasn’t until the late 1980s that the term supply chain management came to be and became widespread in the 1990s. Before then the terms that were used most by businesses including operation management and logistics.

The basic patterns of a supply chain are:
  • An alignment of the different firms that bring services and products to market
  • The supply chain includes all the stages that are directly and indirectly involved in fulfilling the requests of customers, including everyone from the manufacturers to the retailers and the customers.
  • The supply chain is a network of distribution and facilities having different functions of procurement to produce the final products that will then be distributed to customers.
The basic pattern to the practice of the supply chain management remains the same even though each market has different demands. They have to focus on five different areas to create an efficient supply chain: production, inventory, location, transportation and information.

Production covers what the market wants and how much of the products need to be produced and by what time. Inventory involves establishing what it needs to be stocked at what stage in the supply chain and whether they should be finished products, raw materials or semi-finished. The location involves establishing where the inventory and the production facilities should be located.  Transportation established how the inventory should be moved and finally information concerns the collection of data, how it should be used and shared.

Wednesday, 17 December 2014

What is the Basic Concept of Supply Chain Management?

Businesses depend on the supply chain which includes all of the activities that companies need to design, make and distribute their products and/ or services to excel.  Each and every business fits into a supply chain and plays their role within the chain.

Companies have to manage and be aware of their supply chains in order to build an effective strong supply chain that gains the competitive advantage within their markets.


Tuesday, 16 December 2014

What are the Key Issues in Supply Chain Management Part Three

Today we will examine the final four key issues in the supply chain management.

Outsourcing and Offshoring Strategies

Companies need to decide how much of the supply chain can be completed internally and how much needs to be outsourced.  The risks of outsourcing need to be weighed up along and strategies put in place to reduce the risks. There are many questions that will need to be answered, such as how can the supply be kept timely, cost efficient and if facilities need to be moved.

Product Design

Product designs can have an impact on the inventory holding and the transportation costs. Some designs are more costly than others. Would it be better to redesign the product in order to facilitate shorter manufacturing lead times or reduce logistics costs and lead times? Would the redesign compensate for changes in customer demand?

IT and Decision Support Systems

The supply chain and technology go hand in hand. IT enables the efficiency of the supply chain and provides data that can be analysed to improve the system and save on costs. The main issue in the supply chain is to determine how data should be collected, whether it can be received and transferred an d what parts of the data can be ignored entirely. Then there are the questions surrounding the technological tools that enable companies to achieve competitive advantage.

Customer Values

The company is able to work out customer values by measuring the company’s distribution to their customers based upon the different range of products, services and the other offerings the company provides. The supply chain management works to fulfil the demands and the requirements of the customers and providing value. The issues here are surrounding how value is determined, how the supply chain contributes to the customer values and how to use the different trends in the supply chain.

Monday, 15 December 2014

What are the Key Issues in Supply Chain Management Part Two

Today we’re looking at four more key issues in supply chain management.

Supply Contracts

In the past and still found within traditional supply chains, each of the individual links focuses on their own profits and they make their own decisions without considerations for other links in the chain. The different relationships within the buyers and the suppliers are set up using supply contracts specifying the cost, lead times of deliveries, the discounts, returns and so on. However, would it be better to replace the traditional supply chains with more modern techniques that optimise the entire supply chain rather than each individual?

Distribution Strategies

The company needs to establish how much their distribution should be centralised or decentralised. In order to work out this issue they need to establish the strategy on inventory levels and the transportation costs. It’s also important to consider the way that customers will be affected. Then there’s the questions regarding when to distribute the goods and if competitive dealers should share the same inventory.

Supply Chain Integration and Strategic Partnering

The challenge found in the integration of the supply chain and strategic partnering is managing the various dynamics and conflicting objectives that are found in the different partners and facilities. Integrating supply c hains can be successful but it’s vital to establish what information should be shared, how it can be used and how the design and operation will alter the existing supply chain.

Smart pricing

Smart pricing requires the integration of pricing and inventory or the capacity to influence the demand in the market and to improve the bottom line. The revenue management strategies need to address problems such as the impact of the rebate strategies have on the supply chain and how it can be used to improve the performance of the supply chain.

Friday, 12 December 2014

Christmas Fun in HK Office

It's Friday and we’re having a lot of fun in our Hong Kong Headquarter! Congratulations to all winners and participants! Great laugh & food!



What are the Key Issues in Supply Chain Management Part One

Over the next three posts we’re going to look at 11 key issues that are experienced within supply chain management.

Distribution Network Configuration

Technology and other advanced approaches are required to solve the issue of how to configure the distribution network.  It can be extremely difficult to work out the best transportation flow between the different facilities, warehouses and plants. Should the firm move the products from the plant to the warehousing or straight from the plant to the warehouse? What happens when the demand changes? Is it going to be necessary to move the location of the warehouses and make changes in the production levels at the plant? These are complex questions that can be difficult to overcome.

Inventory Control

Retailers that have an inventory of a certain product or products have a difficult job as they only have access to historical data to predict demand. The retailers have to decide on the order size and batch reorder while reducing inventory costs. The retailers will also need to consider the different forecasts to predict the demand and deal with the reducing level of uncertainty while trying to come up with ways to reduce it.

Production Sourcing

There’s a need to balance the costs of manufacturing and transportation. Reducing the production costs often means that the manufacturing plant will be responsible for small sets of products so the larger batches can be created in order to reduce the production costs. As a result the transportation costs may increase. In order to reduce transportation costs, the manufacturing plants need to be flexible while producing all products in small batches. However, this will increase the production costs. This is a difficult issue as it’s necessary to find the perfect balance between the two costs, manufacturing and costs.


Thursday, 11 December 2014

What is the Role of 3PL in Produce Part Three

Keeping costs low is one of the major challenges that are tackled by 3PL and their supply chain management.  3PL providers are able to use customised logistics programs to ensure both firm and customers benefit. The programs analyse the procedures from the orders all the way through to fulfilment. The modal and carrier are the benchmarks against the best practices so that a customised solution is created.

The firm is able to be benefited from reducing the inventory costs and making savings throughout the entire supply chain. In addition to reducing costs the 3PL providers provide other benefits including:
  • Cross customer optimisation of the shipping loads
  • Using models to select the routes for shipments and transhipments
  • Adding value through different processes such as co-packer contracts
  • Working on contractual relationships between suppliers, growers and customers. 3PL provider customised logistics programs to ensure the firm and customers benefit from it



Wednesday, 10 December 2014

Chit Chat: Perfect Order Implementation Checklist


Order Entry
·         Response time via the following:
o    Fax
o    EDI
o    Voice
o    Email
·         Order Keyed properly
Distribution
·         Pick list complete
·         Pick/pack/ship operation complete
·         Packaged properly
·         Correct ship to in manifest system
·         Correct bill to in manifest system
·         Shipped to request date
Planning
·         Parts
·         On-hand at shipping point
·         Backordered
·         Shortage in system
·         Complete order available
Transportation
·         Correct carrier used
·         Correct carrier account number used
·         Arrived according to selected service schedule
·         Freight charges correct
Accounts payable
·         Invoice paid on time
·         PO match
·         Correct amount collected
Customer feedback
·         Customer complaints
·         Package refused
·         Correct technical support information attained by customer
Total Orders Shipped
Total Lines Shipped


What is the Role of 3PL in Produce - Part Two

Third party logistics providers not only provide supply chain management services but to also offer assistance in providing suitable transport for the product. Products can be sent up and down the supply chain, inbound and outbound, to ensure the product is available to customers whether buying in-store or online.

In addition to the procurement and shipment of produce the 3PL can make use of the customer sales data to help benefit the firm. With the data, the 3PL works to improve the inventories for the individual customers as well while reducing the costs of transportation by making the best use of the capacity. By consolidating the load, costs are kept down and deliveries can be offered at a reasonable cost.

Today, 3PL providers use technology such as the RFID tag to further improve the supply chain for all parties involved. The technology allows for real time tracking that can be shared across the entire supply chain. Many large r etailers are now demanding this from their suppliers, which would be impossible to achieve without the assistance and technology provided by 3PL providers.

Tuesday, 9 December 2014

What is the Role of 3PL in Produce - Part One

The aim of supply chain management (SCM) is to reduce the cost and time it takes for supply chains to become more profitable and competitive.  One method that is commonly used to reduce time and costs is to use third party logistics (3PL), especially for small to medium sized companies looking for benefits from SCM.

Smaller companies sometimes are unable to provide their own SCM within the company and this is one of the roles 3PL is able to play.  The provider is able to use their own resources, removing the need for their clients to have the resources in house. This saves costs and time for the company and allows them to benefit from building a resourceful supply chain. The supply chain becomes highly competitive, allowing the company to take on their competition with ease and provide excellent services to their customers while remaining profitable.

With 3PL, the firms are able to get products quickly to store, reducing the risk of missing out on sales due to slow supply chains that are unable to keep up with demand.

Monday, 8 December 2014

How to Deliver the Perfect Order – Metrics for Evaluation

There are different quantifiable metrics that can be used to monitor the success of your perfect orders. The five metrics cover five key areas:
  • Satisfaction: The stakeholder satisfaction percentage is a great general metric and the percentage should be high.
  • Order capture: By collecting the percentage of accurate captured orders gives you a view of how well the requirements have been met. If you have low percentages it shows there is poor order capture support. When you’re able to show high values the metrics support a sophisticated order management process with higher accuracy.
  • Order capture to order fulfillment: The percentage of the orders fulfilled within time constraints shows the efficiency of the order fulfillment.
  • Order fulfillment to order completion: The values from this metric show how many of the orders were completed on the first go and this reflects how the requirements of the customers are met. If there are low values this indicates that there is a lack of satisfaction.
  • Order completion to order settlement: The percentage of the invoices that have been received within the net time shows the ability or inability to deliver accurate invoices.
Using these five metrics you can create the perfect order index by multiplying together the percentages of:
  • Satisfied customers
  • Accurate orders captured
  • Orders fulfilled on time
  • Orders completed first time
  • Invoices received within net time



Saturday, 6 December 2014

Top Trends to Look for in 2015


Self-Tracking

People and business are collaborating to work towards a better future and smarter living which helps to create a stronger future for everyone. Using real time data transforms the traditional business model and improves services and experiences for customers. Apps such as healthcare are continuing to expand next year and are expected to reach a value of $11 billion by 2017.

Green Business

Green brands will need to be sustainable, responsible and eco-friendly in order to obtain greater trust from their customers. Businesses will need to focus on maximising their resources, promote growth through waste reduction while being sustainable at the same time. In China, they had adopted the Circular Economy and their recycling effort is expected to reach £183 billion in 2015.

Sharing Economy

Collaborative consumption generates social values. Having great flexibility, shared resources and network becomes the main stream in accessing sharing economy nowadays.

Betapreneurship

Entrepreneurship is considered to be a career in the EU. At the moment only 30% of European entrepreneurs are women yet this is expected to grow. 21st century betapreneurs operates through risks and profits with disruptive innovation and achieve success. They are innovators, drivers, thought leaders and trend leaders who make things happen.

Learning

Learners are now taking control of the conversations regarding higher education. Old school educational approaches to need to be changed to incorporate digital centric massive open online courses. Social learning is used to attract people to education and the creation of artificial networks. By using augmented reality will take education into a new direction.

Conscious Capitalism

Conscious capitalism refers to businesses that serve the interest of stakeholders, customers, employees, inventors, communities, suppliers and environment. Social capital is gluing communities together and businesses that are driven by conscious capitalism and outperforming the traditional ones.

Collaboration and Openness

Freedom of information is not only expected in business but also in society and governments. It is important to work on your reputation by being transparent and showing honest business practices. By doing so, businesses can achieve an excellent reputation and the trust of consumers.

Purpose Driven Employees

Organisations need to have a defined culture of purpose. Revising the underlying principles of the business enables organisations to be sustainable by having the right people who are capable for the jobs and believe in you.

Friday, 5 December 2014

How to Deliver the Perfect Order – The Solutions Part Two

Today we are looking at the final steps that help businesses to create the perfect order on a consistent level.
  1. Final location identification: The stakeholders should be able to determine the delivery and installation points while supporting physical, virtual and multiple locations.
  2. Packaging options: Provide packaging that support unit, bulk, kits and accommodate regulatory requirement.
  3. Documentation: Include all the appropriate documentation in each order such as trade compliance, regulatory reporting and related supplements such as marketing materials, manuals and advertisements.
  4. Order frequency: Stakeholders should be able to determine the right frequency and intervals.
  5. Accurate invoicing: Provide accurate invoices with each order so that stakeholders can identify charge items, time and material tracking by projects.
  6. Simply returns: Being able to facilitate returns via all channels is essential. All the systems used in billing should be able to support the returns across the order value chain.
  7. Warranty claims: Provide access to warranty policies and make all the instructions available to the public.
  8. Service agreements: The service agreements must be made available to the stakeholders and support third party solutions.
  9. Repairs: Provide repairs that meet with the entitlements of the service agreement and warranty.
  10. Settlement processes: Provide settle and collect invoices that support returns, service agreements, warranty claims and repairs.


Thursday, 4 December 2014

How to Deliver the Perfect Order – The Solutions Part One

There are twenty steps that can be used to deliver a perfect order. We’ll be looking at these 20 steps over the next two days.
  1. Multiple channel support: Stakeholders need to be able to interact at any time with consistent actions and processes such as placing an order, changing orders, returning goods, completing payment, viewing the status of an order and so on.
  2. Enable stakeholder centricity: Maintaining a safe and secured information process to customers, suppliers, partners and employees.
  3. Brand consistency: Corporate brand experience should be consistent across all platforms.
  4. Product and service selection availability: Option s such as warranties, service agreements and training should be included with the product and serviced selected by the stakeholders.
  5. Configuration and quantity: Offer the right quantity and configurations and align constraint-based configurator‘s key parameter to the stakeholder’s request. Support business policies and any contractual obligations with rules.
  6. Guarantee quality: Stakeholders must be able to select from different levels of quality and all offers need to deliver on acceptable quality levels.
  7. Pricing policy: Give stakeholders entitled pricing policies that support time zones, taxes and serviced based pricing.
  8. Sourcing option recommendation: The services and products should be supplied from agreed sources.
  9. Delivery and/or installation: Order completion should include requirements for delivery/installation and any stakeholder’s appointed logistics provider and installation company.
  10. Time allocation: The time period must be provided and agreed upon and be visible to the stakeholders. Incorporate support for on-time delivery and offer concessions for late deliveries.



Wednesday, 3 December 2014

How to Deliver the Perfect Order – Obstacles to Overcome

There are many challenges that need to be overcome when it comes to delivering a perfect order. In order to achieve the efficient delivery of an order that meets the needs and expectations of customers, suppliers, partners and employees, the complex challenges need to be known and worked around to achieve consistent perfection. These obstacles include:

Unnecessary Costs Elimination
Optimising processes will help to improve cost savings by around 5% to 17% according to an Enterprises report. The areas of optimisation include:
  • Multi-channel sales processes
  • Integrating selling and fulfillment costs
  • Reducing errors during the order process
  • Inventory management improvements
  • Synchronizing inventory with supply and demand
  • Increasing human response on the web based channels
Risks Mitigating
Remove the risk of recalls and meet the regulations in order to comply with the current and possible future health and safety measures. Reduce losses by ensuring the products are made correctly using the right people and machinery and have excellent tracking in place to build reliable data and avoid fake components and grey market goods.

Lack of Training and Change Management
Inadequate human resource talent and failing to implement training programs for employees has a negative effect on overall business. The delivery of a perfect order requires ongoing training programs.

Insufficient Technology Support
Businesses need to have systems in place and make use of technology in order to improve transactions, increase analytical insight and the management of the perfect order. A process-centric view technology solution will help achieve perfect order.

Lack of Financial Investment
Despite of the decline in funding and budget allocation, funds for perfect order initiative and resources can be  provided by the return on investment savings that can be achieved by aligning key business drivers in operational efficiency  and regulatory compliance.

Customer Retention
The ability to deliver the perfect order has been shown to increase the positive customer satisfaction scores as shown in many studies. Therefore it is worth working on achieving the perfect order to increase customer retention, which in turn increase order sizes.