Includes in an organization’s supply chain

Includes in an organization’s supply chain

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Includes in an organization’s supply chain

An organization supply chain is essential when doing business and determination of the company’s success. Any slight mistake within the organization could easily cost high amounts and increase competition from other companies. Thanks to supply chain tools which have made it easier for companies. Supply management techniques and tools enables users to be free from errors and high costs while optimizing supply chain (Taticchi et al., 2015). Below are different types of tools of supply chain management that make a company valuable.

To start with status of shipping tool, it provides timely information about all activities involved. Most companies do supply chain of high-volume and while the growth is seen, supply chain is exposed to more errors. The tool updates the in-charge personnel and he take care of any issue before it becomes major. Another one is order processing tool, this tool is responsible for any function across processing orders like order management, billing, processing sales order and fulfillment of order (Taticchi et al., 2015). The two mentioned tools are effective to a company or organization during supply chain.

Both effectively and efficiency, supply chain has influenced material and product flow. Product flow efficiency is indicated by time-to-consumer during product flow and the flow becomes more efficient when it takes less time to deliver goods. However, other factors to consider are the quality of the goods, demand and supply balance and costs. Effectively, it has enhanced financial flow. Taticchi et al (2015) suggested that, through an optimization of information, product and financial flow, creation of new opportunities of market have been created by companies and risks that can impact their business negatively have been mitigated.

Contract bidding being a necessary facet to run a business, can positively impact a company and induce success. On the contrary, here are ways in which it can do that. Renewal and Expirations, durations exist within a contract and it is good to consider when and why this contract is supposed to be renewed. Most of them are renewed when the expiration date is almost but if the contract doesn’t not impact the organization then it should not be renewed. Number two is the breaches, this are the miscommunication and misaligned goals based on the contract’s agreement (Haverila & Fehr, 2016). For a successful company, it is required to avoid breaches which are the source of court battles.

Demand forecasting is important as it assist an organization in making effective decisions and reducing business risks in an organization. It is also focuses on objectives fulfillment, preparation of the budget, organization expanding process, production and employment’s stability, evaluating performance and taking decisions of the management.

References

Haverila, M. J., & Fehr, K. (2016). The impact of product superiority on customer satisfaction in project management. International Journal of Project Management34(4), 570-583.

Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., & Pasqualino, R. (2015). A review of decision-support tools and performance measurement and sustainable supply chain management. International Journal of Production Research53(21), 6473-6494.