Streamlining Order to Inventory Process

Manufacturing and trading companies around the world face the problem of maintaining the right level of inventory, neither too high resulting in higher working capital, nor too low which could lead to stock out situation and losing key customers. Streamlining the order to inventory process, the companies can achieve significant reduction in costs with optimum inventory and also win the confidence of all their customers by meeting all the delivery commitments without fail. The cycle will generally comprise the following sub modules:

The Company should have proper system and tools in place to ensure each of the above modules works with clock like precision. Any slip in any of the areas can result in substantial damage, sometimes irreparable. It is important to understand each of the constituent of the sub modules, create the right organization structure and the right members to handle the right job. Proper information, reports, analysis and review systems need to be put in place to ensure that the right data flow to the right person at the appropriate time and any slip up anywhere is immediately brought to light and rectified. An ideal organization and transaction flow could be summarized to have the following constituents:

Benefits of this approach include the following:

Operational efficiencies:

  • Reduction in inventory and carrying costs up to 35%
  • Reduction in loss of production due to stock outs
  • Eliminate loss of customer order due to stock outs.

Faster Processes and reduced turnaround time:

  • Faster processing of transactions by each employee by at least 15% resulting in less manpower
  • Reduce external and internal customer follow up for any item by more than 50%

Improvement in quality of operations:

  • Reduction in turnaround time of indent to material receipt
  • Streamlined processes and operations resulting in consistent and repetitive buying patterns
  • Reduction in indent and ordering errors and follow up action up to 90% from the current levels
  • Deploy a fully integrated set of applications
  • Improve visibility of supplier profile, delivery patterns and evaluation on scientific grounds.

Typically this process could be outsourced to a back office team who can review the processes, tools and compliance and support at the transaction level for a smooth operation and achieve all the above benefits.

TaurusQuest has experts in its team who have a complete knowledge of various techniques based on a cross section of industry practices and adept in handling under any of the software solutions starting from SAP to Oracle to SAGE and QuickBooks. They can review any of the above modules run on any software and assist in each area with back office support to enable you to understand the processes, lacuna and derive the various benefits outlined above.

To find more about TaurusQuest, visit www.taurusquest.com or send an email to us at enquiry@taurusquest.com

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