Monday, 12 December 2005 22:25
14 Critical Points For Successful Stock Control In Global World
After II. World War, US Governments supported expansion policies of US companies to prevent expansion of communist regimes. European and Japanese companies followed the same policy of US companies. Those companies has grown very fast in 1990s when communist regimes collapsed. As long as multinational companies grew, movements of goods and financal sources accelerated and simplified. Accelerated movements of goods and financial sources supported the growth of multinational companies with boomerang effect. Due to expanded internet access, it is now so easy to make operations, which were deemed very difficult in the past, such as to transfer funds just through one click of a button, to invest money on the different stock exchanges, to reach any required information etc. After collapse of Berlin Wall, communist regimes collapsed as well, and then a new information age occured by means of invention of internet. The need of transformation in business models occured since everyone could easily reach required information. Information used to be an unrivalled power before internet. Nevertheless, today, everyone can reach any information easily and totally free of charge. The way to success, today, does not pass through information, but understanding the evolution around. After II. World War, US Governments supported expansion policies of US companies to prevent expansion of communist regimes. European and Japanese companies followed the same policy of US companies. Those companies has grown very fast in 1990s when communist regimes collapsed. As long as multinational companies grew, movements of goods and financal sources accelerated and simplified. Accelerated movements of goods and financial sources supported the growth of multinational companies with boomerang effect. Due to expanded internet access, it is now so easy to make operations, which were deemed very difficult in the past, such as to transfer funds just through one click of a button, to invest money on the different stock exchanges, to reach any required information etc. After collapse of Berlin Wall, communist regimes collapsed as well, and then a new information age occured by means of invention of internet. The need of transformation in business models occured since everyone could easily reach required information. Information used to be an unrivalled power before internet. Nevertheless, today, everyone can reach any information easily and totally free of charge. The way to success, today, does not pass through information, but understanding the evolution around. Companies, which determine and implement a policy to generate innovations by utilization of internal sources after understanding the evolution around, determining customer requirements, are able to achive the ultimate success within global world. The companies, of course, should constantly listen both inner and outer world for a sustainable success. The companies adopting this strategy, shall prove their core competency and take the leading position.
Sustainable profit is one of the principal issue for the companies on the way to success. Both reduction in costs, and, management of active assets shall have crucial roles within those companies. For this reason, stock management is a major issue for the success of companies.
Stocks are also defined the physical sources which are kept in the company. Those sources include raw materials, semi finished products, goods available for sale etc. Some companies are able to keep their stocks in the lowest level and improve their customer service quality constantly whereas some of companies fail within this process. Well, what are the tips of successful stock kontrol?
Stock control is implemented for two basic applications: manufacturing planning and sales planning. Manufacturing planning is defined as preparation of stocks in compliance with information such as quantity and the type of the products to be manufactured, etc. On the other hand, stock control for sales planning is defined to put the products into the stocks after studying the previous datas for the products, which shall be sold in the future and whose customer demand are not clear. The following facts should be considered in order to implement a successful stock control for sales planning:
Sustainable profit is one of the principal issue for the companies on the way to success. Both reduction in costs, and, management of active assets shall have crucial roles within those companies. For this reason, stock management is a major issue for the success of companies.
Stocks are also defined the physical sources which are kept in the company. Those sources include raw materials, semi finished products, goods available for sale etc. Some companies are able to keep their stocks in the lowest level and improve their customer service quality constantly whereas some of companies fail within this process. Well, what are the tips of successful stock kontrol?
Stock control is implemented for two basic applications: manufacturing planning and sales planning. Manufacturing planning is defined as preparation of stocks in compliance with information such as quantity and the type of the products to be manufactured, etc. On the other hand, stock control for sales planning is defined to put the products into the stocks after studying the previous datas for the products, which shall be sold in the future and whose customer demand are not clear. The following facts should be considered in order to implement a successful stock control for sales planning:
1.) Previous demand and sales datas, which shall be used to determine further demand, should be organized and systematic. The algorithm of the data processing software should be perfectly and completely internalized. The datas should be easily experted from the system and processed,
2.) Lead time should be calculated for each product within the stock. Lead time is the time between order date and delivery date.
3.) Parts should be categorized according to demand quantity and demand frequency.
4.) An availability target should be determined for each category. When necessary, the targets of categories should be changed and general target should be achieved.
5.) Received orders should be examined meticulously. The orders, which cannot be fulfilled from the stock, and sales losses shall be examined in order to prevent possible sales loss in the future. This exercise should both increase customer satisfaction and minimise turnover loss.
6.) The order given to suppliers should me more frequent. Daily orders shall both decrease stock level and also return on capital employed and customer satisfaction.
7.) The total time to be spent by suppilers for preparation of the products subject to shipment should be minimised by mutual discussions.
8.) The transportation time of products should be minimised. There are many various solutions for this aim in global business life. We should work closely with forwarding company for the determination of appropriate solution, after presentation of all demands, necessary measures should be taken in order to minimise transportation time in an economic manner.
9.) Location of warehouse should be determined by considering the markets where the products shall be sold or distributed. Centralization of warehouses, altohugh varies according to the sector, should provide remarkable cost savings and advantages for reduction of work repetitions.
10.) An awareness for everyone within the process should be raised since the chain is as firm as its weakest link. A fault of weakest link shall cause neagative effects on both stock level and also service quality.
11.) Less active and inactive products within the stock should constantly followed and monitored. Those products shall be excluded from the stock and converted into cash as soon as possible by considering the opportunity costs.
12.) Management of the stock within dealers has a very crucial importance. There will be positive results and effects if those stocks within dealers is managed efficiently. In order to perform an efficient management;
a.) Order projection models should be created for dealers,
b.) Orders of dealers should be shpped as soon as possible, in the same day if possible,
c.) Measures should be taken in order to finish inactive stocks of dealers.
b.) Orders of dealers should be shpped as soon as possible, in the same day if possible,
c.) Measures should be taken in order to finish inactive stocks of dealers.
13.) Targets shall be determined for business outputs and those targets should permanently controlled and checked. In case of deviations from those targets, necessary measures should be taken as soon as possible.
14.) It should always be remembered that human resource is the most crucial factor for proper fulfillment of the measures stated above . No matter how efficient information technologies and program infra-structure you have, you might confront difficulties unless you have a team to use and benefit from those technologies.
As a conclusion, it is very crucial to renew and update knowledge of your teams to succeed in a global world. Organization of working groups within the scope of teams and make them create collective projects shall keep both companies and their employees fit. Never forget that only leaders, who are able to preceive the transformations within today’s business life and solve the problems by comprehending internal forces of their companies, can achieve success since stock management requires a remarkable management competence. For this reason, compotent and appropriate team members should be selected and assigned in the right positions.The leaders, who can make right and appropriate selections, are able to watch the improvements and transformations around, determine their requirements and , thus, steal a march on their rivals.
