67

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

We talked about mid term winning for retail and other businesses. During the discussion we talked about trade expenses and the dire need to optimize them to give our strategy that first push to show us incremental growth and give a feeling of confidence that the journey is worth it.

But how to do it is the question that remains. Without answering this question and reaching to the root of it this series would not reach its justified conclusion.

For optimizing the trade spend the first step is to work upon the supporting pillars. And for any organisation the support pillars could be
~ 𝑪𝒂𝒑𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔 – As an entrepreneur or a senior management team, are we really open to be asked questions on our capabilities and can we keep our ego aside to learn new skills to bridge the gap between existing and desired capabilities warranted by our type of business to set its foot on the journey of growth. It could be anything like incompetency in sales, operations, finance or for that matter customer acquisition. What is important is to first identify and then improve upon. Take help from an expert in this process especially if you feel that you cannot be critic to self and then ideally start working as an employee in your own organisation in terms of taking orders and executing them for your own improvement.
~ 𝑪𝒖𝒍𝒕𝒖𝒓𝒆 – If capability assessment and improvement for entrepreneur or top management was addressed, it is equally important to percolate it down the line and here developing the right culture helps which is inclusive of continuous improvements, learning & unlearning, questioning everything and ready to evaluate even those things which looks like universal truth.
~ 𝑰𝑻 & 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝒊𝒏𝒇𝒓𝒂𝒔𝒕𝒓𝒖𝒄𝒕𝒖𝒓𝒆 – No company in today’s world can deny the need of IT or can live without it. Obviously levels of IT infrastructure can change but even the smallest things do matter here and they should be corrected and aligned with what the operations demand. Being penny wise pound foolish or thinking to invest after earning may not work for these things. Some investments are pre-requisite and this being one.
~ 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝒑𝒓𝒐𝒄𝒆𝒔𝒔 𝒂𝒍𝒊𝒈𝒏𝒎𝒆𝒏𝒕 – Having done all that written above will not give desired results if it is not embedded in the DNA of the organisation and here is where the processes help and having right set of processes is mandatory to ensure what we do right once keeps getting repeated automatically with least of efforts.

So this journey of transformation reaches its next milestone with this post and hope that it is able to throw some light and trigger some introspection within all of you. Keep following for more and remember that expert we talked about can easily be Synergeze Consultants Private Limited

#gccoach #transformation

66

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

Yesterday we discussed about Winning in Medium Term for non-retail businesses. Most of the things common but yet there are changes in parameters and approach for retail businesses.

Let’s have a look at what it is for retail businesses.

Some basic factors about retail business which are to be worked upon in this phase are
~ Retail Pricing Strategy
~ Designing a demand driven and efficient supply chain
~ Margin enhancement through cost of goods sold reduction

Then comes setting up parameters and working upon them & here for retail businesses some things which form a basic of these are
~ Re-invent core proposition about business offerings
~ Multi Channel Management
~ Design and business model and network around it which takes you to newer territories continuously and keep strengthening your already explored territories

For retail businesses this phase is about using the levers built around developing a differentiated retail identity, playing wider across channels of consumer access and setting up the operating model and store network for structural advantage.

If we talk about pricing in retail businesses which we yesterday read is the most important factor in this phase, then it have its own challenges for retail as compared with other businesses

Instead of writing here what should be done, let’s look at what is the most common mistakes retailers do while they come across this pricing topic.
~ Mainly they remain focused on securing margin at expense of long-term perception registration
~ Prices are set against competitor prices instead of customer’s willingness & ability to pay & value for their product and uniqueness it offers
~ Promotions are not introduced to boost sales tactically rather simply to match previous sales or to get a temporary growth figure to satisfy themselves
~ Setting prices by focusing on item-level or category-level sales instead of overall impact on business and customer loyalty
~ True logic of pricing quantity or quality hierarchy is unknown
~ Presence in the market to a larger audience plays a major role today & instead to reach there we keep playing around prices & strategies to satisfy our existing customers who normally are restrictive towards bold decisions to be taken
~ Transactions data is not leveraged enough to make micro-decisions on pricing

So if you are in retail business & are really looking forward to make an impact through your business & struggling to identify that transformational journey for self please do get in touch with Synergeze Consultants Private Limited and we shall ensure that “WE PROMISE & WE DELIVER” especially when its about your business goals & growth path.

Till then do engage with me in the comments sections & let’s discuss what is your take on the journey of transformation upto here & till we discuss more on next Monday.

#gccoach #SynergezeConsultants #BusinessTransformation

65

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

After having answered ourselves some basic questions before committing to this journey, now its time to look at the next phase in consideration i.e. what it takes to set foot for winning in medium term, how to define that and what all it takes for that.

𝑾𝒊𝒏𝒏𝒊𝒏𝒈 𝒊𝒏 𝒎𝒆𝒅𝒊𝒖𝒎 𝒕𝒆𝒓𝒎 (Non Retail Businesses)

Actually this is the first stage in the journey after it commences. Remember committing is the pre-journey preparation wherein one still have chance to decide and chose whether to take it or not.

Actually this stage is about developing a differentiated offering to build a medium term competitive advantage. In winning the medium term, the levers are oriented towards developing a successful consumer proposition & then defining key business model elements such as the go–to–market structure and the operating model to deliver the promise consistently.

Some basic factors about business which are to be worked upon in this phase are
~ Pricing & trade spend strategy
~ Service offering or integrated product offering strategy
~ Operating cost structure

Then comes setting up parameters and working upon them & some things which form a basic of these are
~ Exploring new demand spaces for our business
~ Establishing sustainable go to market strategy
~ A business model which have something unique which our competitors does not have – this may include product strategy, service & product differentiating factors, unique portfolio design for products and services etc…

Some of the major results to be expected & measured in the winning medium term stage are

~ 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲
Some basic tips here could be improve your realization on low profitable accounts and increase the focus on high profitability clusters for your business
~ 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲
Basic tips here could be driving margins for higher volume SKU’s and leverage high relative market share to improve price.
~ 𝐑𝐞𝐝𝐢𝐫𝐞𝐜𝐭𝐞𝐝 𝐓𝐫𝐚𝐝𝐞 𝐒𝐩𝐞𝐧𝐝
Main thing here is to focus the trade spends on more profitable accounts and clusters rather than spreading it across the board.

In all the above if I may summarize – the biggest contributing factor could be Pricing. Because pricing, when approached objectively, can be one of the most effective levers to drive profitability. The big advantage of using pricing as a lever is that the increment flows straight through to the company bottom line.

So all this and much more will continue (tomorrow for retail businesses). However till then if you really wish to get an expert guidance in your journey towards transformation please remember that we are just a click away as in Synergeze Consultants Private Limited we ensure that the journey no longer is yours alone, we actually walk with you.

We promise – We deliver

#gccoach #Synergeze #BusinessTransformation

64

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

We talked about the transformation, factors driving it, its need in today’s scenario, what is it and what it takes. Let’s look at now the stages of transformation.

The typical transformation journey has four phases, and the importance and significance of these phases may vary from case to case –

~ 𝑪𝒐𝒎𝒎𝒊𝒕 𝒕𝒐 𝒕𝒉𝒆 𝒋𝒐𝒖𝒓𝒏𝒆𝒚: Think through, access, take guidance, evaluate consequences and benefits and then commit for the larger changes ahead. This is critical to ensure that we remain there rock solid during the hardships that this process will create enroute.

~ 𝑾𝒊𝒏 𝒊𝒏 𝒕𝒉𝒆 𝒎𝒆𝒅𝒊𝒖𝒎 𝒕𝒆𝒓𝒎: identify the winning proposition for the medium term; align operating model to deliver consistently.

~ 𝑻𝒂𝒌𝒆 𝒎𝒆𝒂𝒔𝒖𝒓𝒆𝒅 𝒃𝒆𝒕𝒔: assess various options which can be big in the future.

~ 𝑬𝒏𝒂𝒃𝒍𝒆 𝒕𝒉𝒆 𝒕𝒓𝒂𝒏𝒔𝒇𝒐𝒓𝒎𝒂𝒕𝒊𝒐𝒏: invest in people and technology to make all required changes

Especially the first two steps or phases can be distinctive for different business, whereas the last 2 are more or less having that same theme to proceed with slight adjustments made to suit the business.

Now lets talk about 𝒄𝒐𝒎𝒎𝒊𝒕𝒕𝒊𝒏𝒈 𝒕𝒐 𝒕𝒉𝒆 𝒋𝒐𝒖𝒓𝒏𝒆𝒚
This is the most crucial phase and is dependent on many factors like
~ Current state and age of business
~ Since when we are stagnant
~ What is the pain it is causing
~ The previous attempts of growth and their results – Here its important to accept loudly all the failures in the way and take responsibility unconditionally if at all we wish to improve
~ The support asked for and how we utilized it
~ What and how something impacted or is impacting the business resulting in this phase warranting transformation
~ The capability assessment of the leaders
~ The gap identification and then efforts or attempts taken previously and why they failed
~ How are the current customers looking at the business
~ What all have we lost during the journey till now – growth, customers, commitments, product launches etc…
~ & many more

Once all the above & many elated factors are addressed with pure honesty it will surely lead you to a place where you exactly know that transformation is the only option between sustenance and growth vs closure or stagnation and this means slow death in business parlance.

Commitment talked here is not just commitment by words, but committing to self, business, mentor and to the entire ecosystem in loud and clear terms and with all that you have. Remember running away midway will only complicate things and even the gains made during the journey may turn up to a pain area. Tricky things isn’t it

So remember if you are in such a situation and mentally prepared to take this journey and are looking for an expert – the name is Synergeze Consultants Private Limited.

#gccoach #BusinessTransformation #Synergeze

63

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

We talked about the transformation, factors driving it, its need in today’s scenario. Let’s look at now the basics of transformation, what is it and why do companies need to transform actually.

𝑾𝒉𝒂𝒕 𝒊𝒔 𝑻𝒓𝒂𝒏𝒔𝒇𝒐𝒓𝒎𝒂𝒕𝒊𝒐𝒏?
A transformation is a leadership driven, cross-functional, result-oriented, plan for large scale change to outperform competitors sustainably. It requires strong engagement of the entrepreneur and his/her strong involvement at all levels in the organization. It has disproportionate impact on the core customer offer – with multiple changes made to the operating model and organizational capabilities.

𝑻𝒓𝒂𝒏𝒔𝒇𝒐𝒓𝒎𝒂𝒕𝒊𝒐𝒏 𝑹𝒆𝒒𝒖𝒊𝒓𝒆𝒔 𝑪𝒐𝒏𝒕𝒊𝒏𝒖𝒐𝒖𝒔 𝒂𝒏𝒅 𝑳𝒐𝒏𝒈–𝒕𝒆𝒓𝒎 𝑬𝒇𝒇𝒐𝒓𝒕
Companies need to identify performance symptoms calling for transformation carefully. Stagnant sales, dropping market share, volatility in profitability, under–indexed shareholder returns and emergence of new competitors with non–traditional business models are all strong indicators.

No transformation is short—truly sustainable results require time and consistency in efforts. Normally there are two phases of transformation

1. In the first phase quick and simple operational initiatives are undertaken to generate adequate sales and cash to build a war chest to fund the core transformation agenda.

2. In the second phase, companies need to find avenues to differentiate themselves truly and build organizational capabilities to live the new way of working.

Having said that there are many companies, who undertook transformation journey however the efforts failed. Some specific reasons for the failure can be

~ Halfway Stop – Stopping with just operational efficiency improvement, rather than driving growth.
~ Legacy Trap – Failing to shed core elements of the current business model that are no longer competitive
~ Insufficient Moves – Not making sufficient moves proportional to the scale and scope of the challenge
~ Inadequate independence – Undermining new business models by keeping them too close to the core organisation and operations
~ Lack of persistence – Underestimating time and effort to see results changing course prematurely.
~ Lack of strategic focus – Doing to many things due to lack of coherent and consistent vision and strategy
~ Premature Confidence – Believing that a change is on the right track early on and not continuously revising vision and strategy.

So if you are looking at giving your organisation a push, break the shackles and fly high remember the guide and mentor for this is certainly Synergeze Consultants Private Limited and we are just a click away.

Till then would love to see your comments on this post and how you relate to it.

#gccoach

62

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

In this fresh series let’s look at the most important desire of an entrepreneur i.e. the change of orbit in business and how to approach it and what it takes to actually draw the trajectory which shall take us to that orbit that we aspire.

The businesses across the globe have been facing growth and challenges as a part and parcel of the business cycle.

Today’s business environment is characterized by rapid, extensive change and unpredictability. The combined effects of demographic shifts, globalization, hyper–connectivity and feedback through social media are posing many external challenges to companies. In addition, we see that companies are often hampered by internal complexity that makes change difficult.

Business Transformation is no longer a wishful activity to undertake rather have become a necessity. It is important for companies to start transforming themselves before they are forced to do so by external challenges or succumb to a state beyond recovery.

But too many companies, especially those with a mind leading them which is either unaware of the transformation ways or is not finding capability to run or is found stagnant due to some rigid beliefs, fail to transform themselves till it is too late.

Flat sales, rising costs, disgruntled customers, demotivated employees as well as increasing and new competition are typical late signals that a company needs fundamental change. Yet, it is only after the business comes under severe pressure that they wake up to the need for this change.

In this series we shall look at highlights of how an integrated top–down effort can be initiated & undertaken by small to big companies to drive successful transformation.

The work begins by defining the agenda of transformation after identifying the roots which needs to be shaken, unearthed or watered for a better growth of the business tree.

Some important parameters which warrants this change could be
~ Changing customer behavior
~ New technologies and competitors to deal with
~ No growth in business for prolonged time
~ Absence of continuously failing short & medium term goals thus rendering the long terms goals either not existing or redundant.

Such a transformation costs and never comes for free. Costs could be in terms of cash, efforts, time, some hard calls, some change in mindset by shaking beliefs, or even the last closing the business if transformation agenda also does not lead to any improvement or the problems are many and solutions less.

We shall continue this discussion, however till then do remember Synergeze Consultants Private Limited we are helping companies especially MSME’s to take this transformational journey and move up the ladder of success and growth.

Till then would love to see your comments on the need and impact of transformation

#gccoach #transformation

61

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

Let’s continue where we left last week

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝒗𝒔. 𝑺𝒖𝒑𝒑𝒍𝒚 𝑪𝒉𝒂𝒊𝒏 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 – Supply chain management is a process of managing supply relationships outside a company and the flow of stock into and through a company. Inventory management may focus on trends and orders for the company or a part of the company.

Inventory management is essential for a properly running supply chain. Inventory management follows the flow of goods to, through and out of the warehouse. The supply chain includes demand planning, procurement, production, quality, fulfillment, warehousing and customer service—all of which require inventory visibility.

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝒗𝒔. 𝑾𝒂𝒓𝒆𝒉𝒐𝒖𝒔𝒆 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 – Warehouse management complements inventory management. Warehouse management organizes stock in a warehouse. Inventory management manages stock and trends for many warehouses or an entire company.

The key to streamlining warehouse operations is a thoughtfully laid out and meticulously organized facility. When each product has a specific place in the warehouse, it prevents staff from moving about inefficiently and maximizes labor efficiency. But these processes are only as good as the inventory records that drive them.

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝒗𝒔. 𝑳𝒐𝒈𝒊𝒔𝒕𝒊𝒄𝒔 – Logistics is the practice of controlling processes in a warehouse and in the replenishment and delivery systems. Inventory management maintains stock levels and manages stock location.

Inventory management is a crucial part of how companies manipulate their logistics. The relationship between inventory management and logistics is interdependent. Logistics need inventory management to perform their activities. Good logistics systems improve warehouse and operational activities.

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝒗𝒔. 𝑬𝑹𝑷 – An enterprise resource planning (ERP) system is software that manages business activities such as accounting, purchasing, compliance and supply chain operations. By contrast, inventory management is a part of a modern ERP system, providing insight into stock levels, inventory en route and the status of current inventory—this makes it visible across the organization in real time.

Inventory management helps to properly plan a company’s replenishment orders. ERP systems give companies accurate inventory data, so they have the most current information for their inventory management plan. ERP systems optimize the data so inventory management is successful.

So all this and much more is an integral part of our offerings to our clients when we say we provide end-to-end supply chain management execution based consulting.

Remember name is Synergeze Consultants Private Limited and our USP is we are extended arm managing & resolving your issues of supply chain.

#gccoach #inventory #synergeze

60

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

Let’s continue our journey in decoding the inventory terms and its management which till date always remained behind those walls of the warehouses and away from the understanding of the common public.

Let’s continue where we left yesterday

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝒗𝒔. 𝑪𝒚𝒄𝒍𝒆 𝑪𝒐𝒖𝒏𝒕𝒊𝒏𝒈 – “Taking inventory” is the process of physically counting all stock, once a year in most cases. Cycle counting is the practice of counting a selected set of stock more often. Cycle counting serves as an important means of checks and balances to ensure the amount of inventory represented in the inventory management system is what you have on the shelf.

A cycle counting best practice is to count specific SKUs regularly and integrate it into the daily tasks of warehouse staff. We may determine different standards for different types of inventory, such as performing a cycle count of top-moving SKUs or higher-value items.

𝑫𝒆𝒎𝒂𝒏𝒅 𝑷𝒍𝒂𝒏𝒏𝒊𝒏𝒈 𝒂𝒏𝒅 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 – Demand planning is an important part of successful inventory management. It is the process of determining how much of each item you anticipate selling, and when. Once demand is determined, inventory management follows the flow of goods from the supplier through production and ultimately fulfilling customer orders.

𝑯𝒐𝒘 𝑰𝒔 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑫𝒊𝒇𝒇𝒆𝒓𝒆𝒏𝒕 𝑭𝒓𝒐𝒎 𝑶𝒕𝒉𝒆𝒓 𝑷𝒓𝒐𝒄𝒆𝒔𝒔𝒆𝒔? – People sometimes confuse inventory management with related practices. Inventory management controls all stock within a company. Supply chain management manages the process from supplier to delivering the product to the customer. Warehouse management is a part of inventory control and focuses on stock in a specific location.

~ Inventory Management vs. Inventory Control: inventory control is a part of the overall inventory management process. Inventory control manages the movement of items within the warehouse.

~ Inventory Management vs. Inventory Optimization: Inventory optimization is the process of using inventory in the most efficient way, and as a result minimizing the dollars spent on stock and storing those items.

~ Inventory Management vs. Order Management: Inventory management is responsible for ordering and tracking stock as it arrives at the warehouse. Order management is the process of receiving and tracking customer orders. Software often combines both tasks.

We shall continue discussing these differences in tomorrow’s post and till then a shout out to all the readers to keep an eye on any of such needs wherein our end-to-end consulting by Synergeze Consultants Private Limited may play a role in fulfilling the need and refer them to us. We are just a click away

#gccoach #synergeze #inventory

59

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

We talked about the inventory, the challenges in managing it, the types which exists and as I said i will take you through the inventory management in detail, let’s now look into understanding what is the Inventory management Process

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑷𝒓𝒐𝒄𝒆𝒔𝒔

If it is about make to order manufacturing, the inventory management process starts when a company receives a customer order & continues until the order ships.

In made to stock manufacturing setups, the process begins with forecasting the demand and then placing POs for the required raw materials or components, their receipts, storage, WIP and storage and managing the finished goods at all levels of the outbound supply chain.

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑻𝒆𝒄𝒉𝒏𝒊𝒒𝒖𝒆𝒔 𝒂𝒏𝒅 𝑻𝒆𝒓𝒎𝒔
Inventory management techniques using formulas & analysis or procedures, they all aim to improve accuracy and gets decided by the need of the company. Some of the techniques & tools are as given below.

~ ABC Analysis: its about identifying the most and least popular types of stock.

~ Cross-Docking: Its about unloading items directly from a supplier truck to the delivery truck. Warehousing is essentially eliminated or reduced.

~ Demand Forecasting: A predictive analytics helping predict customer demand.

~ Drop-shipping: The supplier ships items directly from its warehouse to the customer.

~ Economic Order Quantity (EOQ): Shows exactly how much inventory a company should order to reduce holding & other costs.

~ FIFO and LIFO: First in, first out (FIFO) means you move the oldest stock first. Last in, first out (LIFO) considers that prices always rise, so the most recently-purchased inventory is the most expensive and thus sold first.

~ Just-In-Time Inventory (JIT): Maintaining the lowest stock levels possible before a refill.

~ Lean Manufacturing: Focuses on removing waste or any item that does not provide value to the customer from the manufacturing system.

~ Materials Requirements Planning (MRP): Handles planning, scheduling and inventory control for manufacturing.

~ Minimum Order Quantity: Ordering minimum amounts of inventory from suppliers in each order to keep costs low.

~ Reorder Point Formula: Finding the minimum amount of stock to have before reordering

~ Safety Stock: It prioritizes safety stock & ensure there’s always extra stock set aside in case they can’t be replenished on time.

~ Lean Six Sigma: This method combines lean management and Six Sigma practices to remove waste & raise efficiency.

Till such time I come up with the next post on the subject, do remember to refer the one stop solution in this game Synergeze Consultants Private Limited to all those in your network who have such a need and needs guidance. We are not consultants, we are execution based Consultants.

#gccoach #synergeze_consultants #Inventory

58

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝑩𝒍𝒐𝒐𝒅 𝒐𝒇 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏

We are now familiar with inventory and its common issues. Let move ahead

𝑾𝒉𝒂𝒕 𝑰𝒔 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 – 𝒂𝒏𝒅 𝒉𝒐𝒘 𝒎𝒂𝒏𝒚 𝒕𝒚𝒑𝒆𝒔 𝒂𝒓𝒆 𝒕𝒉𝒆𝒓𝒆?

Inventory is the raw materials, components and finished goods a company sells or uses in production. Accounting considers inventory an asset. Accountants use the information about stock levels to record the correct valuations on the balance sheet.

Inventory is often called stock in retail businesses: people frequently use the term “stock on hand” to refer to products like apparel and housewares. While there is a difference between the two, the terms inventory and stock are often interchangeable.

There are 13 different types of inventory:

~ Raw materials: These are the materials a company uses to create & finish products. When the product is completed, the raw materials are typically unrecognizable from their original form, such as oil used to create shampoo.

~ Components: These are similar to raw materials except that they remain recognizable when the product is completed, such as a screw.

~ Work-in-progress (WIP): WIP refers to items in production & includes raw materials or components, labor, overhead & even packing materials.

~ Finished goods: These are items that are ready to sell.

~ Decoupling inventory: It is the term used for extra items or WIP kept at each production line station to prevent work stoppages.

~ Safety stock: It is the extra inventory a company buys and stores to cover unexpected events.

~ Packing materials: There are 3 types of packing materials. Primary packing protects the product & makes it usable. Secondary packing is of finished good and can include labels or SKU information. Tertiary packing is bulk packaging for transport.

~ Cycle inventory: Companies order cycle inventory in lots to get the right amount of stock for the lowest storage cost.

~ Service inventory: This concept refers to how much service a business can provide in a given period. A hotel with 10 rooms, has a service inventory of 70 one-night stays in a given week.

~ In transit inventory on books: Also known as pipeline inventory, it is stock that’s moving between the manufacturer, warehouses and distribution centers.

~ Theoretical: Also called book inventory, this is the least amount of stock a company needs to complete a process without waiting.

~ Excess: Also known as obsolete, it is unsold or unused goods or raw materials that is not expected to be used or sold, but costs to store.

~ Maintenance, Repair and operations: MRO is often in the form of supplies, that supports making a product or the maintenance of a business.

So now you know that any inventory you need to manage you can simply reach out to Synergeze Consultants Private Limited for end-to-end solutions of your issues & guidance thereon.

#gccoach #TypesOfInventory #Inventory_Management