The benefits for outsourcing involve: improved service, reduced costs, easy accessibility to new technology, more focus on individual development of employees (Ketler & Walstrom, 1998; Lacity & Willcocks, 1998; Quinn, 1999). Outsourcing has apparently paved way for organizations to raise the bar of doing business. With organizations striving hard to achieve increased competitiveness, flexibility and improving performance, focus has been shifted from corporate activities to business processes that would eventually provide the competitive edge (Ngwenyama & Bryson, 1999; Quinn, 1999). Thus outsourcing is eventually turning to be a strategic decision that could significantly help the organizations to leverage skills and special
The purpose of this research is critically analysing supplier managed inventory as a purchasing strategy in all aspects. Colgate-Palmolive is the case study of this research. Systematically the importance of outsourcing and procurement functions in supply chain analysed and then SMI process critically evaluated. Benefits and risk of SMI was researched and key elements for successful implementation explained. The importance of IT infrastructure and strategic relationship analysed in detail.
An evaluation of the key factors needed to gain the commitment of internal and external stakeholders when communicating vision Since stakeholders are the individuals and groups who can affect and are affected by the strategy outcomes; and who have enforceable claims on the firm 's performance, their support to the business firm, together with their expectations from it, are important part of success of strategic management processes of the organisation. It therefore rests upon the organisation to honour their support and to make a significant effort in fulfilling their needs and expectations. External stakeholders constitute customers, suppliers, unions, mass media, bankers, creditors, and local communities while internal stakeholders constitute
Therefore, managers need to take measures to increase profits by reducing costs, especially variable costs per unit, which vary with the level of activity. It is an important tool in short-term profit planning in an organization, especially in assessing margin of safety. ii. Decision making CVP analysis helps managers understand the relationship between cost, volume and profit; thus, it 's a vital tool in the decision-making process in an organization. CVP analysis influences the decision of managers when it comes to matters such as product selection mix, make or buy decisions, selection of the best channel of distribution, the type of marketing strategy to use, what pricing policy to follow and the best
Materials management is a discipline of production management that concerned with the planning, purchasing, storing and distribution of the materials in an efficient manner. It is responsible for the flow of materials from supplier through production to customer, in order to minimise costs and to provide better customer service. Management of materials in most companies is crucial to their success because the cost of buying, storing, moving, and shipping materials accounts for over half of a product’s cost. One of the meaning of productivity is driving down the cost of production. Materials management is increasingly seen as the key to higher productivity in many of the
It provides the critical links between supply chain partners, permitting goods to flow between their facilities. Transportation service availability is critical to demand fulfillment in the supply chain. The efficiency of transportation promotes the competitiveness of a supply chain. One of the most effective measures for reducing costs and exposing supply chain inefficiencies is the use of Transportation Management Systems
According to procurement and supplies the SCM is achieved with the holistic management and integration of suppliers into product and manufacturing activities. Better logistics and transport system reduce the cost and inventory within and outside the organizations involved in supply chain (Lamming, 1993). The different views of researcher’s present view with are restricted to the relationship between the buyers and sellers. In a supply chain it is important to have a network of customers, suppliers, transport companies and even the competitors to unite in order to serve a purpose of common interests to save and cut time and resources (Dolatabadi, bazrpash, 2006). A summarized definition is provided by Stock and Boyer (2009).
Research have shown that cost-benefit analysis, gives an avenue for holistic understanding on the reverse logistics system, designing and their implementation. Such analysis will help to ascertain important issues that determines the effectiveness and viability of RL systems (Dowlatshahi 2010). Stock (2001), stated emphatically that the performance of cost-benefit analysis is significantly important for the purposes of ascertaining the value of returned products as well as the operating costs associated with remanufacturing or recycling of such products. Importantly, the determination the costs and values are not only significant to the success of reverse logistics system, it would help to influence firms’ participations and its decision on
There are three phases of customer knowledge management, the first phase is the collection and verification of customer data, next is the analysis of customer data, and third, the use of customer data for specific marketing strategies. According to Zanjani, M. S.,(2008), one of the most basic foundation for improvement in customer value is customer knowledge. This is to ensure an organization would be more well-organized and operational in providing products and services to customers, and nevertheless would able to develop customer satisfaction. Customer knowledge is also being a big role for the organization to manage and provide the customer needs by doing the collection and verification of customer data as its first phase. This is due
RESULTS/FINDINGS Competitive advantage arises when a firm creates value for its customers by emphasizing the importance of differentiation, which consists of offering a product considered as being unique, seeing a particular product market as more effective or efficient than its competitions, and cost leadership. By utilizing these generic strategies against industry’s external environmental determinants, management can affect a firm’s performance. On the contrary, a resource-based view suggests that a firm can sustain its competitive advantage through the alignment of internally consistent bundles of HRM strategies/implementation to its overall business strategy and desired performance, to develop critical resources or competencies. This