Thursday, 6 April 2017

What are the key issues for today’s business operations? – Part 4

Today we’re looking at the final issue for today’s business operations, managing the supply chain. Supply chain managers are being put under scrutiny as business organisations are being pressured to improve their supply chains. 

Supply chains have historically been overlooked as managers concentrated on internal operations and their immediate suppliers. These days, the supply chain is being focused on as a way of reducing waste, saving costs and improving customer services. Problems that need to be addressed in the supply chain include:
  • Improving operations and quality while reducing wasteful cost out of the systems.
  • Increasing levels of outsourcing that can increase spending relating to packaging, movement, loading and so on. These costs are often unnecessary.
  • Increasing transportation costs.
  • Increase in competitive pressures and meeting the demand for customization, shorter development cycles and production of new products.
  • Increased globalisation is extending the length of supply chains.

Ebusiness has become increasingly important and is a new challenge for businesses.
The importance of well managed inventories as they can mean the success or failure of the supply chain.  Excess inventories increase costs.


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