It also stunts any scope for improvement or innovation as it is too focused on sticking to the set benchmarks. This often leads to poor overall performance of the organization in the long run which in turn affects the going concern of the business. Secondly, it utilizes a single, volume-based cost driver which leads to the distortion of the cost of products. It traces overheads to products or services usin... ... middle of paper ... ...osts and where to apply efforts to curb inflationary costs. This can be of particular value in tracking new products or customers and also solves the cross-subsidies problem linked to traditional costing system by separating overhead costs into different cost categories or cost pools.
It is costly by not understanding the multi distribution network in standard line delivery (Multiple drop off points through retail channel sales) Operations – To work out the right layout and work flow process in the company. The manpower resource allocation is also critical in the situation on the right balance of resource to handle the production. If possible, adopt a hybrid model to handle the flexibility in the product nature, make both the production line being able to configure standard and customized so to reduce setup and changeover time and cope with the demands.
It Outsourcing INTRODUCTION Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and other financial factors. The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common and the IT environment is changing rapidly. REASON TO OUTSOURCE Although the mix of factors raising the possibility of outsourcing varies widely from one company to another, there are a series of themes that explain most of the pressures to outsource. First of all, general managers’ concerns about cost and quality drive outsourcing. The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly.
That is why the design of the reverse supply chain processes is so important. Every company needs specific processes that are aimed at increasing value for the company and its customers based on the type of industry in which it operates and the type of products that it supplies. The major stumbling block for most companies that are attempting to optimize their return supply chain is the chaotic nature of reverse logistics. Volume within the return supply chain is highly variable and difficult to predict or control (O’Reilly, 2005). In addition, returning the product in a timely manner is often not of major importance to the end users and retailers.
Problems such as not being able to monitor what the employees are buying and what they should can lead to losses. Monitoring may be the obvious way out for shareholders but in the long run, this can lead to accumulated costs for the firm. Therefore, it is important to overcome this problem with methods s... ... middle of paper ... ...actors, such as the type of task, need to be carefully examined in order to make the optimal decision about adopting a particular style of management. As we can see, monetary means is not the only factor in which managers can use to motivate employees. Interesting work and employee pay appear to be important links to higher motivation of centers' employees.
In fact it is one of the main concern but the other aspect of outsourcing like to expedite the service delivery and to enable the company to deliver its services to a much larger market are other major incentives that oblige companies to sublet their operations partially. However, the misconception among the employees of an organization must be removed that the outsourcing would affect their economic benefits and they must realize that only those operations are logically ousourced that cost more without giving comparable productivity. In that sense, outsourcing is a way to cut the fats from the operation of the company and make it more sustainable in the competitive business world today.
Thus we can see that a supply chain process involves multiple stages starting from suppliers and ending to end users or customers. The entities which are involved in a normal supply chain are suppliers, manufacturers, warehouses, distributors, transporters, retailers and customers. NEED OF RFID One of the key challenges many organisations face is managing the interconnectivity and collaboration between different entities of the supply chain. Seamless flow of information, tighter integration and communication between channel partners plays an important role in increasing the efficiency of any supply chain and in turn the profitability and rate of return for any business. Due to the lack of communication and flow of information between the stages of supply chain results in poor product visibility and lack of transparency in the supply chain.
He had to overcome several barriers to entry and exit. The first of which is the problem of economies of scale of production and marketing. He attempted to quash this problem by approaching several of the larger companies who dominate this market, effectively making it an oligopoly. By doing this he could launch his product into this market but help ensure its success by nullifying the problem of economies of scale. But unfortunately the companies rejected his idea.
Priceline utilizes a method that incorporates the basic economics of shopping. The critical point to recognize is that all consumers aren't created equal. Some have strong brand preferences, while some are sensitive to price and care little about brands. A smart merchant would like to sell at a high price to those with strong brand preferences and at a low price to those who are not so loyal. The trouble is that the price-sensitive and the price-insensitive shoppers look the same when they walk into a store, so merchants have to come up with a way to get them to identify themselves.
There are various reasons for incorrect records. (Among the reasons of inaccurate inventory recordkeeping are products coding mistakes, counting mistakes, taking a wrong product from stocks, not keeping record of defective inventories, communication lags leading to late update, etc. ).The more capital is invested towards information systems, the lesser will be the potential... ... middle of paper ... ...in expediting their production process so as to reduce the work in process inventory. These managers have the responsibility of managing (and growing) their firm’s relationship with major clients, coordinating professionals across the various disciplines of the firm and often across geographic boundaries. The role of the key account manager remains a complex and often ill-specified responsibility because geographic or discipline groups are frequently made up of separate profit centers.