This will help to reduce the cost of goods sold, thus increasing Strong Tie’s gross margin and operating margin. Strong Tie should look into other suppliers and identify more efficient manufacturing methods. Improving labor costs will also help to increase margins, which is already a plan being implemented by Strong Tie. Increasing sales would be instrumental for increasing Strong Tie’s profitability which can be accomplished in multiple ways. For the sake of Strong Tie, the company should look into either concentrating its sales efforts or expanding their market.
Resources commitment are essential for reverse logistics capabilities. Information as a sources of reverse logistics becomes essential because investing in information technology can help retailers develop a sustainable competitive advantages. Information systems (IS) capabilities are recognized as playing an important role in managing RL processes. The fourth hypotheses is contractual arrangements are positively related to reverse logistics capabilities. Contractual arrangements are part of a socialization process with other channel members that involves arranging relationships that intentionally promote goal consistency.
These factors could be changed if the organization takes a total new approach towards matters converting constructive criticism in to golden opportunities and catering for the need of the customer rather than trying to align the needs to fit the product service availability. Costs in par with the standard market expectations could be widely reduced if innovative methods are introduced, for example within the legislative requirements, organization could look in to the possibilities of reducing paper work and increase system entries. Recycling of paper waste collected from the entire organization, filtering of waste water , LED based lighting to save electricity are some of the proven sustainable solutions of reducing overall cost in long run. Service and quality a standard has to be kept above the industry average by actively attending to the changing lifestyles, expectations of the customers. Further, as emphasized above, it is important to treat the employees as the most valued assets of the organization, nurturing their needs since happy internal customers create happy external customers in return.
Besides, QFD allows the companies to analyze the competitors’ products and services in the market place. Another benefit is lowering the cost and time for development. There will be required minimum changes in the middle process of production. QFD also enables the companies fostering the teamwork. Organization functions such as marketing and sales team, engineering team and production team need to work together.
The benefits of good strategic fit include cost reduction, due to economies of scale, and the transfer of knowledge and skills. The success of a merger, joint venture, or strategic alliance may be affected by the degree of strategic fit between the organizations involved. Similarly, the strategic fit of one organization with another is often a factor in decisions about acquisitions, mergers, diversification, or divestment. Strategic Fit exists when value chain of different business are related. When these different value chains allow transferring skills and expertise from one business to other, and their combined performances work to reduce cost.
Some of the advantages of JITD are: • JITD makes to reduce the inventory at distributors’ location since it builds inventory at central location and then delivers according to the demand by. It eliminates the needs for each distributor to hold its own buffer which causes demand fluctuation. Therefore, it benefits the distributors through releasing their inventories space and cost. • JITD implies quick response. Since the inventory data and delivery pattern are controlled by Barilla, their central factory and CDCs are therefore easier to schedule their production and deliveries to meet the customer demand.
Kill overhead- Extra expenses can be cut down by following a process, implementing an efficient way of operation, the best deal done with the supplier so as to avoid wastage of time and money, this helps to lessen overhead. 2. Invent revenue- the human resource works to find the source of revenue, this makes the Human Resource team a profit center instead of being a cost center, like if the firm has extra building space, inventory or capacity to work then that could be sold or given on lease. This amount generated will help in meeting the expenses of the company, thus HR becomes a profit center even in case it produces no loss and profit for the firm. So an HR that manages the cost manages is not a cost center.
Supply chain management system (SCMS) One of the enterprise application that span across the organization is Supply chain management system ( SCMS). Supply chain management system (SCMS) is a streamline of supply activities to gain a competitive advantages and to maximize the customers value on the marketplace. Moreover, it controls the goods, information, and finances as they process among supplier to manufacturer to wholesaler to retailer to consumer. It is about integrating and coordinating all these flows within companies. The goal of any effective supply chain management system is to reduce inventory, with the assumption that products are available when needed.
Logistics can reduce the enterprise cost, enhance the competitiveness of enterprises. Supply Chain Management (SCM) is the management of the flow of goods and services. It includes the moving and storing of raw materials, work-in-process inventory, and products from point of origin to point of consumption. The Supply Chain Management can cost up to operating costs
3.1 Advantages The purpose of scheduling in an organization is to reduce the production time and cost of production. By having a good and effective scheduling in an organization, it can help to bring some benefits. First, it can help to smooth the demand signal. In real life, customer demand signal can be divided into two categories such as peaks and troughs of demand. As production scheduling can separate the demand of customer from what is manufactured and where demand is spiky, this can provide a large opportunity to produce a steady drumbeat of manufacturing which can then affect or influence the supply chain of company.