How to Control Your Company’s Hidden Costs
Published on About.com (see PDF)
In today’s competitive business reality, companies must lower their operating costs and increase productivity just to survive. Yet, many companies are reluctant to upgrade their computer system, remembering their past experiences and not wanting to incur new expenses. The tools and technologies exist but a fear of change prevents some Manufacturers, Distributors and Retailers from making the cultural change that’s needed to use a new technology to improve how their business operates. What they fail to realize is that having aging software will result in higher operating costs company-wide and excess inventory in the warehouse – meaning a decrease in bottom line profits.
The New Supply Chain Reality
In today’s challenging business environment manufacturers, distributors and retailers realize that what worked in the past might not work today. Looking into the future they try to come up with new ideas that will help them lower their operating cost, gain market share and increase profitability. As they do this, they will often find themselves assuming new roles.
Supply Chain Logistics: 10 Common Issues
Borrowing money: Sale and inventory information are a major factor when getting financed. Not having the proper information will result in the main lender declining the loan or line of credit. Borrowing the money in secondary financial markets will result in high interest and increase operating costs.
Threats Faced by Manufacturers, Distributors, and Retailers
This is my personal list of hot-button issues facing manufacturers, distributors, and retailers as they navigate today’s business waters. What we’ve learned is that where there are threats, there are also opportunties.
The Power of Purchasing Information
Many companies are surprised when they find excess inventory of fast-moving items during a physical inventory. After getting over the initial surprise, they shrug their shoulders and say, “These are fast-moving items, and they should sell.” What they fail to realize is that even though fast-moving items will sell, they carry unnecessary storage costs that affect their bottom-line profit.
Lowering Operating Costs
Operating costs can be substantially reduced by upgrading aging computer system. Yet many companies are reluctant to upgrade their computer system, remembering their past experiences and not wanting to incur new expenses. What they fail to realize is that having aging software can result in higher operating costs company-wide and lead to excess inventory in the warehouse.
Keynote Address to IBM/VAI Warehouse Management Expo 2006
Dani Kaplan, the keynote speaker at the IBM/VAI sponsored Warehouse Management Expo 2006, gave his presentation on the “Domino Effect of Business Disruption” which results from having an un-automated warehouse. The article describes frequent types of business disruption and excess costs associated with an un-automated warehouse and presents solutions to correct these issues.