This waste can also be caused by overproduction as excess materials and work-in-process. Inventory waste is often due to lack of planning and failure to match purchases with the actual consumption or usage rate of a particular resource. Another example is the storing of slow-moving
These natural calamities are not under the control of the organisation and this may result to the suspense of operation activities for some days or weeks. This delay can have some repercussions on the contractual agreed by both parties on the date of delivery. This late delivery may compel CNOI to pay to the Client a lump sum damages, at the time of receipt of the work. Obviously this may increase the expenses incurred by the organisation which culminate to a decrease in the profits. Furthermore, CNOI offers credit facilities to their customer and procrastinate their payments to CNOI may affect the cash flow.
Today many manufacturing firms are faced with problems of entering in to international markets like demand insufficiency, financial trouble, the lack of marketing organization, standards, goods and services with reasonable prices and quality which provide competitive advantage on foreign markets, low capacity, adaptation problem of market entry, law and politic problems, diversity of customer's choice and habit, bureaucracy (Özlem Özkanli et’al (2006).The problems to export are related to a lack of capital (capital is important to build and to maintain international market relations) as well as a lack of human resources: most of the time the manager himself is in charge of export activities. The lack of managers with international experience
In that current situation, economic slowdown and huge inventory write-offs resulting from this lack of visibility have highlighted the need for a systematic way to predict and manage demand. Today the new technologies have introduced to the supply chain and it is help to extend supply chain visibility. Companies are looking outside sources within the enterprise, such as sales and promotions groups, to include customers in the demand management
Without efficient management, it becomes difficult for information to feed up and down the chain of command. Staffs feel less empowered. Presently, the company has various front-end and back-end systems running separately. It results in a clash between different processes that ensure that the company is running easily. Inventory management is suffering due to lack of accurate data from sales.
Credit based selling is one of the prime cause of industrial sickness in the areas of marketing. Credit selling causes freezing of funds and leads to shortage of cash when required to run the business for daily activities of a unit. Due to unavailability of adequate cash for the business, there arises a need to take extra funds from outside source. Entrepreneurs take extra funds as and when required and the cycle continues. It is suggested that proper guidance and training to the entrepreneurs will help the small scale manufacturing units in Ahmednagar MIDC to
Proper storage of inventory is vital while improper storage can cause a product to deficit or minus, resulting in a loss of money and inventory. iv. Issue(Distribution stock from storeroom): items or products kept on store to be moved to the required place when the demand comes. The size of the facility doesn’t change procedure to do this process. The movement and control of stocks are more complex in large facilities.
Poor documentation or loss of record of sales IV. Poor hand writing and indiscriminate cancellation of written words which hinders quick interpretation. V. Creation of large volume of files as regards to sales, invoicing and other information storage which leads to difficulty in updating and stock taking. To check these demerits, the computerized invoice system have to be
Improper management of working capital can also lead the firm to bankruptcy and there are also some retail companies in the past to state this fact. The main problem and issue in working capital management is to maintain a proper balance between its current assets and current liabilities. Currently Axiom Telecom faces a negative working capital, which can create a negative impact on the profitability and liquidity of the organization and it should be dealt with seriousness to survive among the competitors. Negative working capital is a state where the firm doesn’t have necessary capital to operate as its current liabilities are more than current assets. The reasons for the existence of negative WC is due to the duration of stock holdings and extended credit to the customers.
 A lower score signifies fewer capital constraints. Finally, benefits include increased efficiency and reduction in waste. A global survey of sustainability reporters conducted by BlackSun Plc in late 2015, shows that 88% of the reporters indicated that reporting helped make their organizations’ decision-making processes more efficient.  Sustainability reporting requires companies to gather information about processes and impacts that they may not have measured before. This new data, in addition to creating greater transparency about firm performance, can provide firms with knowledge necessary to reduce the use of natural resources, increase efficiency and improve their operational performance.