Supply Chain Solutions No.46 – Explain the Development and Production Process to know gaps in the Vendor Process
There are three core business models sourcing products. Buying organisations need to define what their business model is and how their process operates, never expect the vendor will understand your business model and process.
Managing container fill is important in small and large organisations. Excellent purchase order planning, logistics and carton size working to pack sizes that maximise container fill, and warehousing racking is key.
Limiting transparency and creating silos due to distrust is a standard management approach when been protective. But is this doing more harm than good?
Is placing a penalty on a vendor for late shipment a necessity that ensures the product reaches the customer on time or something draconian and unnecessary?
Managing the purchase order process through raising, delivery receipt and invoice processing is critical to reducing fraud. Fraud is a supply chain related category that should not be ignored, as reported in the Kroll Global Fraud Report 2013, and has affected 70% of all companies surveyed. Procurement fraud is a key contributor in those companies affected.
Through factoring, Buyers can gain a credit facility through a factoring organisation like Stenn International where the Seller pays the finance charges of goods exported internationally.
Factoring or Trade Finance is a mechanism that frees exporters capital delivering a positive cash flow providing value to both Sellers and Buyers of any commodity.