Marketing Versus Supply Chain Management In the business field, there are many career paths that you can choose after you have attained your education. To best select potential options for careers, I have narrowed them down to Marketing and Supply Chain Management to show the differences and similarities between both careers. Supply Chain Management deals with sourcing raw materials to manufacturing goods, delivering the products, and the point of sale (BusinessDictionary.com). While marketing is where the company targets their audience to specific products to increase their revenues. These professions have a high demand outlook within the business world.
2. List and explain the costing tools in logistics costs The costing tool that can be used in inbound stage is Value Chain Analysis. Value Chain Analysis is a useful tool for create the greatest possible value to the customers. In manufacturing perspective, where the manufacturer "adds value" by taking a raw material of little use to the end user (for example, woods) and converting it into something that people are willing to pay money for such as paper. Firms or Companies can use inputs of time, knowledge, equipment, technology and systems to create services of real value to the
In that way, Refresco Purchasing Buyers of the raw materials will have an overall picture of the entire inbound transportation and warehousing activity, which among others enables finding possibilities in coordination, as well as the use of knowledge and expertise about both the transportation and warehousing market and buying power that the purchasing department of Refresco has. By doing so, the department of purchasing will be able to concentrate on their core business, at the same time as the transportation cost and the total logistic cost of the inbound flows could be minimized. In order for this solution to work, Refresco Purchasing department need to work more
Inventory valuation is one of the factors that decision makers have to consider before making any decision in their business. They can know how different inventory assumptions affect the cost of good sold and the resulting net income. Inventory valuation is value a company allocates to its inventory in storage and when it is sold. There are several methods to calculate the inventory values to know how much they cost. These methods are specific identification, cost average, first in, first out (FIFO), and last in, first out (LIFO).
The first stage allocates overhead costs to activity cost pool (Cost Pool A, B or C as shown above). Activity cost pool is the overhead cost attributed to a distinct type of activity. Example of overhead cost pools are ordering materials, setting up machines, assembling products, inspecting products. The second stage assigns the overhead allocated to the activity cost pools to the products (Product A, B & C), using cost drivers for e.g. number of purchase orders, number of setups, labor hours, or number of inspections.
A credit memorandum is a transaction that reduces amounts receivable from a customer. For instance, businesses issue these memoranda to indicate the return of damaged goods or differences about the amount owed. Typically, a form of documentation accompanies the returns such as the packing slip that was initially shipped together with the goods. The customers return the goods and include the packing slip that was previously issued. The customer invoice is then retrieved and used to select the goods and quantity that were returned by the customers.
The cause of this importance is that where the rest of the elements of the marketing mix are cost generators, price is a source of income and profits. During pricing, the company manages to support the expense of production, the cost of distribution, and the price of promotion. Place. Following the price tag, another component is place. Means that after making the product and pricing, product positioning in the correct places are important.
Moving and storing goods brought into the organization (inbound) will require different attention from moving and storing finished goods. Another approach to analyzing logistics systems is to view the various logistical areas as cost centers and then examining to find the lowest cost trade off you can get. The logistics channel considers the network of organizations involved in the flow of goods within the supply chain. Nodes are storage points, assembling facilities or manufacturing sites in an organization. Links shows the transportation networks that links these various nodes in the system.
While one method tracks costs that can be specifically attached to a unique product, batch of products, or service, and then also allocates the overhead to the individual units or services, the other method also tracks the direct costs but accumulates the overhead costs for the shared services used to produce indistinguishable products, then assigns them to a functional department, and from there assigns them to products. Job and process costing system characteristics are examined in further detail, and examples of companies that use each are provided. Job
Products would start out as raw materials and then the process of extraction would begin, there are a number of channels that may need to exist before the consumer could pick the product off the shelf. The packaging and distribution are important factors in this process. This whole process is called the chain of derived demand, everything is pulled through as a result of the demand for the product. Businesses that operate within the business-to-business markets purchase the materials with the objective of adding value, so they can ultimately move the product down the chain until the finished product reaches the general consumer. Marketing is reliant on the profitable satisfaction of needs, and both markets depend on the principle of delivering the right product to the right people, and at a right price.