Complaints and problems are
natural part of every business. But on other side complaints and problems gives
a us a chance to change the things and decisions. In the Material management we
can elucidate this as reevaluating the existing procedures and approaches in
orders to contribute more to corporate success. Below please find the review of
some common challenges.
Delivery of Goods
Adequate supply chain management
is all about delivering the right product and quantity in the right condition
with proper documentation to the right place, at the right time all at the
right price. A clear process is required in order to ensure that all goods
procured by the organisations are accounted for and can be traced. The most
common issues surrounding deliveries are over / under deliveries, damaged and
incorrect goods.
Cost control
Cost control is a continuous
process that begins with the proposed annual budget. Supply chain operating
costs always effect due to sudden raise in freight prices and hidden labor
rates and their expenses. On other side supply chain organisations can control
these costs through thousands of potential matrices. Managers need to zero in
on the critical few that drive total supply chain costs within their
organizations.
Risk Management
The process of identifying risks,
assessing risks and developing strategies to manage risks is known as risk
management. By understanding potential risks to business and finding ways to
minimize their impacts, managers can helps the organisations to recover quickly
if an incident occurs. Supply chains must periodically be assessed and
redesigned in response to market changes, including new product launches,
global sourcing, new acquisitions, credit availability, the need to protect
intellectual property, and the ability to maintain asset and shipment security.
In addition, supply chain risks must be identified and quantified.
Vendor relationship management
Vendor relationship management is
a intellectual approach to manage an interactions of vendors with the
organizations that supply the goods and services it uses. The methodologies of
vendors pre-qualification and measuring criteria of vendors performance vary
from organization to organization even different departments within same
organisations have different methods for calculating the results. But the trust
begins when managers let go of internal biases and make a conscious choice to
follow mutually agreed upon standards to better understand current performance
and opportunities for improvement.