Question

What is the Key point to building an operations/supply chain management plan?

What are some sustainability issues as well as the cost of goods sold?

Answer 1

The key points in building operations and supply chain management plans are

• Cusormer Demand centres
• Trade off between cost vs quality
• Proper inventory management
• Availability of logistics network for delivery of product
• End to end visibility of supply chain
• Optimisation of routes and sourcing of raw materials.

All operations and supply chain planning need proper strategies which could optimise the resources and fulfil the order based on the lean methodologies. In addition future supply chain focus to be there like type of distribution , enhancing online tracking and management of orders, reducing facilities and utilising the service of 3rd party vendors and trusted logistics partners for cost reduction and quality enhancement.

Sustainability issues are increasing cost of supply chain especially in the area of logistics. Cost of storage, inventory movement, freight , customs and duties etc is a major concern. Reverse logistics ( waste of products, backorders) and recycling of used product etc also become on of the key issues in cost of goods sold.