Inventory management Essay Example | Topics and Well Written Essays - 750 words

Inventory management - Essay Example While VMI does require a strong partnership and trust relationship, given the fact that it decreases expenses, enhances strategic product development, and leverages available technology, there is no reason to think that an upsurge in demand will change the fundamental principles that make VMI work. Although Scouras takes a generally negative position on VMI and feels that suppliers should not make inventory management a core competency, there is much to be said for the system itself. His assertion that the success of the methodology depends upon the economic climate is not supportable in light of the fundamental benefits provided to both suppliers and retailers regardless of the status of demand. The first notable advantage is that VMI decreases expenses on both ends of the supply chain. For the supplier, efficiencies in purchasing, ordering, shipping, and warehousing are increased while customers receive the cost benefits associated with carrying less inventory (Coleman and Poulan, 53). Supply chain efficiency is always a good thing and changes in the rate of demand for any particular product do not alter that fact. The argument that suppliers incur a higher risk due to their management of inventory is unavailing; suppliers are able to directly control the amount of productio n, and would be able to adjust their production processes to meet the level of demand present in the market at any particular point in time. In fact, the use of VMI allows suppliers to more accurately gauge which products are experiencing higher demand. A second significant advantage provided by VMI is the fact that it allows suppliers to engage in strategic product development. Users of the system have found that it brings them closer to their customers, provides more information on consumer preferences, and allows them to adjust and manage retail stocks (Lowson 76). The benefit of this proximity is that suppliers are able to develop new or improved

High Performance Essay Example | Topics and Well Written Essays - 250 words

High Performance - Essay Example is, the company should institute efficient ethical standards, which will boost its general performance and especially those of the executives, since approximately 90% of the corporation’s future leadership/management will emanate from workforce already evident in the firm. Despite having shown significant progress for the past ten years, the company lacks the necessary requirements which are key aspects prior venturing into the international market. These requirements are mainly resources that entail both human and physical assets, for instance, adequate funding (AMA, 2007). The company ought to establish an effective mechanism directed towards identifying high performing employees and rewarding system. Since an executive normally assumes the center role in enabling an organization to reach and establish itself in the competitive global market, a slight fault might yield to its collapse if its management is incompetent (Kimberly, 2008). Besides, the firm should concentrate on internal operations while correcting the evident inadequacies like evaluation of their workforce performance, motivation, augmenting budget and managerial training. This is because during expansion to the global levels, it will utilize almost 90% of its management besides incorpo rating extra experienced international executive. Hence, reducing numerous wrangles and divisions that are currently evident amid the workforce where some are contented with the firm’s current position (AMA, 2007). In addition, the firm must institute extra consistent strategies aiming to reach the international standards and dominate the arena, which is contrary to the current state (Scott, 2003). This will enable each to undertake all the aspects seriously because the firm’s philosophies are in line to their strategies, hence, no confusion. Besides incepting adequate policies meant to augment its budget in preparation for international venturing, the firm needs to start developing its personnel. This will be