In the final
interview I carried out with international professionals working in supply
chain and logistics, this week I spoke to Mark, EFS Workshop Manager from Venson
Automotive Solutions, UK. Working in the independent fleet management company,
Mark on a day to day basis sees how supply chain impacts nearly all parts of
their company. With the quick, fire round questions discussing implications of
supply and demand planning; let’s hear what he had to say…
Holly: As a small business, how does your supply chain operate?
Mark: Operations of the supply chain can be complex and
time consuming if not managed correctly. The option to use suppliers as
partners is one way to overcome such issues. Let your suppliers have access to
your sales (both predicted and definite) and timescales of requirements so they
can assist in the flow of correct materials and components. Furthermore they
can use set pricing to cut down on timely phone calls to price check each
contract.
Holly: What are the impacts of under-stocking and how do
you deal with this?
Mark: Should a situation whereby understocking has
become apparent, then a review of policy and procedures would be advisable. For a small organisation, we need to explore our options and communicate with our suppliers who hold the stock. Working relationships and honesty with key suppliers will and does aid to a smoother running organisation and enhances greater communication between all.
Holly: What are the impacts of over-stocking and how do you deal with this?
Mark: Over-stocking is the area that needs to be avoided
and any organisation which finds itself in this situation will need to address
the impact on its core operations immediately. We all work in an ever changing
technology based workplace and the risk of over stocking is that components can
become obsolete very quickly. This causes working capital to be tied up and
eventually, worst case scenario, being written off. If you find yourself in
this situation, an immediate review of your whole purchasing /
ordering system potentially needs addressing.
The who and
why questions are for later, the first step is to create a pathway that ensures
you don’t put your business at financial risk again. Engage staff and welcome
change, get all employees pulling in one direction to create the required end
goal.
Holly: How are errors avoided in your forecasting?
Mark: Forecasting is the sales and manufacturing crystal
ball. We all know what we would like but reality and competitive market places
dictate that is rarely the case. Market place studies, financial and wellbeing
of a business sector are one areas of study to assess potential orders and
focus areas. In reality we focus on our long term customers, their market place
and their purchasing calendar. We are all constantly looking for the next BIG
ONE and all strive to be better but in terms of forecasting. We must go with
the definite plans and work our potentials alongside with a percentage win
rate.
Holly: Thank you Mark for your time! Hope you enjoy the rest of your day.
As a tomboy child, Holly enjoyed watching wrestling and was
The Rock’s biggest fan. She is from a tiny farming village in the north of
England and has moved to Sydney to enjoy the city lifestyle. As a conference
producer at Akolade, Holly enjoys researching with and learning from key
professionals within a range of sectors to produce timely conferences.
Furthermore, Holly enjoys how each day in the life of a conference producer is
always different and exciting!
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