By Mark Piscopo
In today's complex business environment new projects are constantly being developed as organizations seek new ways to reduce costs, improve processes, increase productivity, and build their bottom line. Managing these diverse projects along with their people, resources, technology, and communication is a difficult endeavor for which the risk of failure is often far too high. An effective solution, created to establish a more centralized management structure for large groups of projects, is the Project Management Office (PMO). The PMO provides organizations with an infrastructure of people, procedures, and tools to achieve effective project management by leveraging project management standards, allocating resources, establishing consistent performance measures, and reducing duplication of efforts.
There are many benefits to establishing an effective PMO. First, the PMO provides a framework for consistently managing projects through a standard methodology while ensuring the projects are aligned with corporate goals and strategies. Project managers have clear lines of responsibility while coordinating people, processes, and tools with one another and by doing so, avoid both gaps and overlaps between projects and reduce or eliminate duplication of effort. Standardization and repeatability afford an organization better communication, reduced project cost, improved resource management, more accountability, improved quality, better forecasting, and less overhead associated with project managers.
Enlist Executive and Management Support The first step in establishing a PMO is gaining executive and management support. This step relies heavily on organizational change management (OCM) as it requires a potentially significant shift in organizational culture as well as roles and responsibilities. Regardless of the difficulties and resistance to change, this step is the foundation upon which a successful PMO must be built. As with any shift in organizational structure, policy, or procedure, favor must be gained through justification for the changes in terms of cost benefit and return on investment (ROI).
Determine the Structure and Build the Team The next step in building a PMO is to determine the structure and develop the team. There is no defined template for PMO structure as every organization brings its own variables to consider. Some manage all aspects of the projects assigned under them like scheduling, budgets, resourcing, human capital, oversight, and communication. Others may strictly coordinate these functions with most of the support coming from adjacent departments. The keys to determining the right structure and team members for the PMO are understanding the most effective way they can co-exist within the organization and finding the right balance between the PMO, organizational culture, roles and responsibilities, and management style. Some things to consider in establishing the structure and building the PMO team include: availability of resources; existing project management standards and methodologies; current roles and responsibilities; the politics of the organization; project size and volume; and current project management problems.
Develop and Document Standards Once the structure and team members have been determined, it is time to develop and document the PMO standards, practices, and methodologies for project management. These standards will allow for consistency across the organization and its portfolio of projects. They will also comprise a large portion of the training that projects managers and staff will receive in the next step. Standardization is also an important part of allowing an organization to compare various projects and allocate resources where and when they are necessary.
Identify Skills and Train the Staff Once the development of project management standards and methodologies is complete, the PMO must identify the proficiency levels and skill sets of it project managers and staff in order to determine what training is necessary. Some of this information will be evident as a result of reviewing the statuses of current projects. Much of the training content can also be based on the standards, practices, and methodologies that were defined in step #3. The PMO should also establish an ongoing training program. In a PMO it is inevitable that staff members will come and go and organizational standards will change and evolve. A training program will ensure that all new employees receive training on those standards and existing employees remain aware of any changes.
Measure Success and Continuously Improve Now that the PMO structure is finalized, project management standards are established and communicated, and personnel are trained, the focus of the PMO must shift to assessing and measuring success. This point in time marks the initiation of progress and performance reporting based on standardized tools, templates, and methodologies. However, it also marks the beginning of a continuous process improvement cycle and a transition from PMO deployment to operational sustainment. As the PMO evolves, project team members must maintain an awareness of the metrics by which their projects are measured as well as how process effectiveness is determined. There must be a concerted effort to identify processes which require improvement. Once identified, improvement measures must be developed and implemented.
The establishment of an effective PMO is beneficial to any organization which manages a portfolio of projects. When planning and building a PMO it is imperative that it is done in a manner which compliments the existing structure or the organization. This will allow the company to gain maximum benefit and to do otherwise would be counter-productive. Since every organization is different, the optimal structure for the PMO must be designed based on many considerations and variables. The ability of a PMO to manage projects through consistent and repeatable standards and methodologies brings many benefits. It provides the organization with accountability, continuity, simplified oversight, and the ability to measure project success more effectively. An effective PMO is a catalyst for greater efficiency as it allows an organization to do more quality work with fewer resources and less risk. The result of these benefits is an organization that will significantly improve its project success rate.
About the AuthorMark Piscopo is the founder of ProjectManagementDocs.com, a website dedicated to advancing project management through the distribution of free project management tools, templates and educational material. Mr. Piscopo is a highly accomplished professional offering 20+ years of documented achievements in; Strategic Business Planning; Project & Program Management; Project Management Office (PMO); Team Building & Leadership; Change Management; Process Improvement; Cost Reduction; Risk Management; Partner & Customer Relationship Management; and Technology Advancements. Mr. Piscopo is a certified Project Management Professional (PMP).
Visit http://www.ProjectManagementDocs.com to download free PMBOK based project management templates, tools and educational articles.
Tuesday, March 31, 2009
Business Coaching - Ensuring Your Company's Future
By Brandy L. Frederickson-Raney
Developing a business can be a fairly challenging journey as well as complicated as your businesses demands increase. Having a well devised business plan is always a necessary starting point; however, once you have developed your business plan where do you go from there? Many business owners have solicited the help of a knowledgeable and experienced business coach. Gaining an external perspective can prove to be essential in your businesses growth in today's every changing market.
Business coaching is the practice of providing advice and support to an individual or business to help them recognize ways to improve the effectiveness of their business. Business coaching is for the inexperienced entrepreneur as well as the established company with an extensive history. It has been reported that over 40% of Fortune 500 companies use business coaching. Your business coach can observe costly ineffective patterns and help develop and establish new strategies necessary to enable your business to grow.
As reported by the International Coach Federation, of the 210 clients whom were receiving business coaching 70% reported their investment in business coaching as "very valuable", 28.5% said their investment was "valuable" and 1.5% said their investment in a coach had "not been valuable." In summary, an astonishing 98.5% of coaching clients reported their investment in a coach as "well worth the money."
The benefits of using business coaching often outweigh the financial cost. Business coaching is similar to consulting or counseling; however, coaching is about creating a mutual beneficial alliance. Business coaches looks at your business as a whole; including your businesses past, present and future to better manage your professional and personal life. Coaching can improve the overall quality and life of your business, by streamlining your initial business plan.
Most business owners seek the advice of a business coach for help on time management as well as career guidance and business strategies. To a lesser extent however, still significant, they seek coaching on relationships, family, wellness as well as spirituality. Coaching is a discovery of your company's inefficiencies. The true process of coaching requires getting at the source of your businesses ineffectiveness. If your company is stalling there is a reason. You have to be accepting of your company's inefficiencies while seeking your coach's advice. Your coach will be able to devise a plan to overcome your inefficiencies; thus paving the road to a profitable business future
In this increasingly challenging market, having a business coach can prove to be a worthwhile investment. The statistics on business coaching reveal that business owners who do seek the expertise of a qualified business coach do improve and enhance their chances of success. By partnering with a business coach, you can gain the opportunity to receive structured guidance and sound advice you may not have considered previously.
Virtual Assist Managers is owned and operated by Brandy Frederickson-Raney. I am a 15-year veteran in the administrative field. My experience includes an administrative support roll for medical and dental professionals. I have acquired experience over the years in the administrative field as a Practice Manager and Office Coordinator, in accounts payable and accounts receivable, medical billing as well as dental and medical terminology. I also am a Certified Medical Transcriptionist and have been employed as a government contract Transcriptionist.
I have been involved in all phases of the dental and medical practice experience. This experience also includes recruitment of employees, transitioning of doctors, staff management, writing and implementing practice policies, marketing, billing, recall coordination, and computer management.
I currently reside in Georgia with my husband and two children. We are a family in the US Army and enjoy being transferred to new and exciting areas. In my spare time, I thrive on spending time with my children, connecting with old friends, and enjoying the family experience.
I am delighted you have decided to visit Virtual Assist Managers.
100% Satisfaction Guaranteed! We are committed to excellence. The success of Virtual Assist Managers is based on the satisfaction of our clients.
Developing a business can be a fairly challenging journey as well as complicated as your businesses demands increase. Having a well devised business plan is always a necessary starting point; however, once you have developed your business plan where do you go from there? Many business owners have solicited the help of a knowledgeable and experienced business coach. Gaining an external perspective can prove to be essential in your businesses growth in today's every changing market.
Business coaching is the practice of providing advice and support to an individual or business to help them recognize ways to improve the effectiveness of their business. Business coaching is for the inexperienced entrepreneur as well as the established company with an extensive history. It has been reported that over 40% of Fortune 500 companies use business coaching. Your business coach can observe costly ineffective patterns and help develop and establish new strategies necessary to enable your business to grow.
As reported by the International Coach Federation, of the 210 clients whom were receiving business coaching 70% reported their investment in business coaching as "very valuable", 28.5% said their investment was "valuable" and 1.5% said their investment in a coach had "not been valuable." In summary, an astonishing 98.5% of coaching clients reported their investment in a coach as "well worth the money."
The benefits of using business coaching often outweigh the financial cost. Business coaching is similar to consulting or counseling; however, coaching is about creating a mutual beneficial alliance. Business coaches looks at your business as a whole; including your businesses past, present and future to better manage your professional and personal life. Coaching can improve the overall quality and life of your business, by streamlining your initial business plan.
Most business owners seek the advice of a business coach for help on time management as well as career guidance and business strategies. To a lesser extent however, still significant, they seek coaching on relationships, family, wellness as well as spirituality. Coaching is a discovery of your company's inefficiencies. The true process of coaching requires getting at the source of your businesses ineffectiveness. If your company is stalling there is a reason. You have to be accepting of your company's inefficiencies while seeking your coach's advice. Your coach will be able to devise a plan to overcome your inefficiencies; thus paving the road to a profitable business future
In this increasingly challenging market, having a business coach can prove to be a worthwhile investment. The statistics on business coaching reveal that business owners who do seek the expertise of a qualified business coach do improve and enhance their chances of success. By partnering with a business coach, you can gain the opportunity to receive structured guidance and sound advice you may not have considered previously.
Virtual Assist Managers is owned and operated by Brandy Frederickson-Raney. I am a 15-year veteran in the administrative field. My experience includes an administrative support roll for medical and dental professionals. I have acquired experience over the years in the administrative field as a Practice Manager and Office Coordinator, in accounts payable and accounts receivable, medical billing as well as dental and medical terminology. I also am a Certified Medical Transcriptionist and have been employed as a government contract Transcriptionist.
I have been involved in all phases of the dental and medical practice experience. This experience also includes recruitment of employees, transitioning of doctors, staff management, writing and implementing practice policies, marketing, billing, recall coordination, and computer management.
I currently reside in Georgia with my husband and two children. We are a family in the US Army and enjoy being transferred to new and exciting areas. In my spare time, I thrive on spending time with my children, connecting with old friends, and enjoying the family experience.
I am delighted you have decided to visit Virtual Assist Managers.
100% Satisfaction Guaranteed! We are committed to excellence. The success of Virtual Assist Managers is based on the satisfaction of our clients.
10 Ways to Keep Talent Through Tough Times
By Rick Weaver
Even though there are plenty of people looking for jobs, finding skilled, talented workers is harder than ever before. Therefore it is essential you retain your current talent.
Here are ten easy, practical ways you can hold on to those individuals you do not want to lose.
Even though there are plenty of people looking for jobs, finding skilled, talented workers is harder than ever before. Therefore it is essential you retain your current talent.
Here are ten easy, practical ways you can hold on to those individuals you do not want to lose.
- Give top performers opportunities to develop. Providing additional training and responsibilities helps you see what they can do.
- Reward your top performers to retain them. Rewards should be consistent with the value they provide. However do not fall into the trap that rewards must be cash or merchandise. There are hundreds of creative ways to reward talent without spending a dime.
- Keep your door open. Be accessible to your people when they want to talk.
- Provide mentors. Veteran employees can help young talent learn the culture.
- Cross-train top performers so that you can move them around where needed. Younger employees appreciate this as it gives them broadened expertise.
- Show you value talent by treating employees fairly.
- Find ways to help your top performers understand themselves. This will help them manage change better.
- Develop your own standards for top performance. Don't copy someone else's unless mediocrity is OK. Make sure your talent understands the standards and are equipped to achieve the goal.
- How many top performers are enough? Mine for talent all the time, not just when talent leaves or changes jobs.
- Maintain relationships even when people move on. Some talented people return quickly when they find out they do like the new employer. Welcome them back.
Success Today Means Doing Things Differently - 10 Ideas to Think About
By Manny Nowak
Why are some people doing bad in this economic time, while others are doing great?
Why are some people creating tremendous success in the same business/industry that others are dying in?
Why are some businesses closing, while others are just opening their doors?
Strange isn't it?
I mean if the times are really that bad, then why aren't we all doing bad? If business is really that bad, why are my competitor's sales up 50% while mine are down 50%? How can this be? What makes it great for some and for others?
Maybe, just maybe it is all in how you look at it. The old saying, "is the glass half full or half empty"?
But more than that - are you looking at things the same way you have been for the past 10, 15 or 20 years? Are you doing the same things you have been doing?
Or, are you looking at things differently?
Are you using you mind and saying - let me try something else? Are you using that great knowledge of yours and thinking differently? Are you stepping back - getting the opinion of someone younger or someone who is totally outside your industry?
Amazing what will happen if you open up and try something different?
You see, it is not about doing what you have been doing better, longer, faster or cheaper. It might just be about doing something differently?
If you take a look at those companies today who are successful you will see that they are looking at things differently.
Here are ten things for you to think about:
1) Check the attitude at the door Dump the doom and gloom and start figuring out how to make it work. Start by coming to the realization that a bad economy mean a great time to make money.
2) Take a reality check. Forget that it has worked for 20 years - it is not working today -that is the reality? So what are you going to do differently
3) Listen to people outside your business Instead of the so called experts in what you do, ask someone who knows nothing about what you do. Take people who do not sell and ask them how they would do it?
4) Get some youthful involvement. Amazing what a little youth can do for a company where everyone has been there for 20 years.
5) Don't get sucked into what everyone else is doing - think for yourself.
6) Do some brain storming - don't judge the ideas, just make a huge list and then go back and work the list.
7) Find others who are positive and work with them. I hate to say it, but if all the people you are hanging out with are negative, start hanging out with some different people.
8) Get involved in a mastermind group Share you issues with other Help other people with their issues Let others help you with your issues
9) Get more education Instead of cutting training and education - spend more money here This gets the creative juices flowing This is what you need right now Stop holding back.
10) Get out there and network, network and network some more People do business with people they like.
This list is just my simple list to start with. Use it, add to it. Send me some ideas and we will share them with others over the next few months. manny@mannynowak.com
Just do something to move your life/career/business forward - will you please.
Manny Nowak has spent over 25 years helping people create success in their lives. An ex-marine and former top-notch computer programmer, Manny has an extensive background helping other achieve extreme levels of success. Manny is the author of over a dozen books; CD's and tools that focus on your ability to achieve greater success in all areas of your life (personal and professional). So stop hesitating - YOU CAN MAKE IT HAPPEN!
http://www.MannyNowak.comManny@Mannynowak.com
Why are some people doing bad in this economic time, while others are doing great?
Why are some people creating tremendous success in the same business/industry that others are dying in?
Why are some businesses closing, while others are just opening their doors?
Strange isn't it?
I mean if the times are really that bad, then why aren't we all doing bad? If business is really that bad, why are my competitor's sales up 50% while mine are down 50%? How can this be? What makes it great for some and for others?
Maybe, just maybe it is all in how you look at it. The old saying, "is the glass half full or half empty"?
But more than that - are you looking at things the same way you have been for the past 10, 15 or 20 years? Are you doing the same things you have been doing?
Or, are you looking at things differently?
Are you using you mind and saying - let me try something else? Are you using that great knowledge of yours and thinking differently? Are you stepping back - getting the opinion of someone younger or someone who is totally outside your industry?
Amazing what will happen if you open up and try something different?
You see, it is not about doing what you have been doing better, longer, faster or cheaper. It might just be about doing something differently?
If you take a look at those companies today who are successful you will see that they are looking at things differently.
Here are ten things for you to think about:
1) Check the attitude at the door Dump the doom and gloom and start figuring out how to make it work. Start by coming to the realization that a bad economy mean a great time to make money.
2) Take a reality check. Forget that it has worked for 20 years - it is not working today -that is the reality? So what are you going to do differently
3) Listen to people outside your business Instead of the so called experts in what you do, ask someone who knows nothing about what you do. Take people who do not sell and ask them how they would do it?
4) Get some youthful involvement. Amazing what a little youth can do for a company where everyone has been there for 20 years.
5) Don't get sucked into what everyone else is doing - think for yourself.
6) Do some brain storming - don't judge the ideas, just make a huge list and then go back and work the list.
7) Find others who are positive and work with them. I hate to say it, but if all the people you are hanging out with are negative, start hanging out with some different people.
8) Get involved in a mastermind group Share you issues with other Help other people with their issues Let others help you with your issues
9) Get more education Instead of cutting training and education - spend more money here This gets the creative juices flowing This is what you need right now Stop holding back.
10) Get out there and network, network and network some more People do business with people they like.
This list is just my simple list to start with. Use it, add to it. Send me some ideas and we will share them with others over the next few months. manny@mannynowak.com
Just do something to move your life/career/business forward - will you please.
Manny Nowak has spent over 25 years helping people create success in their lives. An ex-marine and former top-notch computer programmer, Manny has an extensive background helping other achieve extreme levels of success. Manny is the author of over a dozen books; CD's and tools that focus on your ability to achieve greater success in all areas of your life (personal and professional). So stop hesitating - YOU CAN MAKE IT HAPPEN!
http://www.MannyNowak.comManny@Mannynowak.com
Inexpensive Ways to Get it All Done
By Raymond Le Blanc
If you've ever been in an office supply store, they always offer the latest gadgets and gizmos to help you stay on top of your business whether in an office or at home. Keeping ahead of the rush doesn't have to involve putting out a lot of money for things electronic gadgets that will only confuse you more until you get used to how to use them. Sometimes, the tried and true methods still work the best.
As a work at home mom, you are saving money on childcare but also building a business that you can be proud of. To that end, you need certain equipment to make it happen. For the sake of scheduling, stop looking at that PDA and go to the calendar aisle. Yes, we said calendars. Oh, and planners are good too.
Have you seen the new calendars lately? They aren't just those pocket ones your mom carries around or the one that comes in the mail from the insurance company (not that there's anything wrong with those). Calendars have taken on a functionality that is quite exciting.
Speaking of calendars, two that I've found to work well are Mom's Plan-It Calendar by Avalanche Publishing and Mom's Family Calendar by Sandra Boynton. These calendars are fun to look at and come with stickers and pens to record everyone's schedule. On the latter calendar, there is a space to write in every family member's name and their activities each month.
Family calendars help you mesh family life and business commitments. Since the kitchen is the central meeting place for a family, the calendar can hang there for everyone to record what they are doing. Or, they can give all their information to you and you can do it. Mom, you can even list your work hours each day on the family calendar so your beloved husband and kids know when you are not to be disturbed.
Now, let's talk about planners. A planner works better for business and can also be used in conjunction with a desk calendar. In your business planner, each day is broken down by hours. The time slots that you listed on the family calendar can be broken down into specific project commitments in your planner. A planner can go everywhere with you so you are never without your schedule.
Choose a planner carefully. There are many on the market and some have features you don't need. Franklin Covey offers a line of planners for all sorts of needs. Look for:
- Removable pages
- Section for notes or notepad
- Address book
- Place for business cards
- Tabs for easy look-up
- Vinyl pouch for bills, messages, etc.
Keeping your business schedule straight is not an easy task, but that doesn't mean it has to be an expensive one. You can still stay on top of your daily work with the ever handy, even if they are considered old fashioned by your kids, calendars and planners made for the job.
By Raymond Le Blanc. If you want to know more about Internet Business please sign up for my Free newsletter at http://cranendonk.com or follow me at Twitter.
http://twitter.com/RaymondLeBlanc
If you've ever been in an office supply store, they always offer the latest gadgets and gizmos to help you stay on top of your business whether in an office or at home. Keeping ahead of the rush doesn't have to involve putting out a lot of money for things electronic gadgets that will only confuse you more until you get used to how to use them. Sometimes, the tried and true methods still work the best.
As a work at home mom, you are saving money on childcare but also building a business that you can be proud of. To that end, you need certain equipment to make it happen. For the sake of scheduling, stop looking at that PDA and go to the calendar aisle. Yes, we said calendars. Oh, and planners are good too.
Have you seen the new calendars lately? They aren't just those pocket ones your mom carries around or the one that comes in the mail from the insurance company (not that there's anything wrong with those). Calendars have taken on a functionality that is quite exciting.
Speaking of calendars, two that I've found to work well are Mom's Plan-It Calendar by Avalanche Publishing and Mom's Family Calendar by Sandra Boynton. These calendars are fun to look at and come with stickers and pens to record everyone's schedule. On the latter calendar, there is a space to write in every family member's name and their activities each month.
Family calendars help you mesh family life and business commitments. Since the kitchen is the central meeting place for a family, the calendar can hang there for everyone to record what they are doing. Or, they can give all their information to you and you can do it. Mom, you can even list your work hours each day on the family calendar so your beloved husband and kids know when you are not to be disturbed.
Now, let's talk about planners. A planner works better for business and can also be used in conjunction with a desk calendar. In your business planner, each day is broken down by hours. The time slots that you listed on the family calendar can be broken down into specific project commitments in your planner. A planner can go everywhere with you so you are never without your schedule.
Choose a planner carefully. There are many on the market and some have features you don't need. Franklin Covey offers a line of planners for all sorts of needs. Look for:
- Removable pages
- Section for notes or notepad
- Address book
- Place for business cards
- Tabs for easy look-up
- Vinyl pouch for bills, messages, etc.
Keeping your business schedule straight is not an easy task, but that doesn't mean it has to be an expensive one. You can still stay on top of your daily work with the ever handy, even if they are considered old fashioned by your kids, calendars and planners made for the job.
By Raymond Le Blanc. If you want to know more about Internet Business please sign up for my Free newsletter at http://cranendonk.com or follow me at Twitter.
http://twitter.com/RaymondLeBlanc
From Concept to Customer - Supply Chain Management
By Adam Singleton
The 21st century consumer is spoilt for choice when it comes to shopping for goods and services; and there is certainly a wide range of products to choose from, whatever the occasion.
But it's probably fair to say that very few people ever stop to consider how the goods actually end up in their current form in the first place; from an idea in someone's head to the factory floor, then transported on the back of a truck and taken to their local department store. Indeed, from a customer's point of view, there is probably very little reason to ever consider the journey a product has taken to get to their front room.
However, from a business point of view, managing and monitoring a product's journey is integral to the company's long-term success. What's more, streamlining the process to minimise costs and delays will help to ensure the supply chain is optimised to their own benefit.
Indeed, the main underlying objective of supply chain management (SCM) is to meet the demands of the consumer through efficient use of all resources involved in moving the product or service, from the supplier to the customer. There are, however, many mechanisms in place to ensure that the SCM process runs smoothly from start to finish. This includes clear communication between suppliers to eliminate bottlenecks, and also strategic sourcing to ensure the right balance is struck between material costs and the quality of goods on offer.
But whilst supply chain management requires businesses at every level of the process to cooperate fully with each other, the ultimate goal of individual companies is to fulfil their immediate obligations in moving the product on to the next stage in its journey. As such, any tool of the trade will do if it helps them manage the often complex procedures involved in SCM, thereby increasing their profitability, competitiveness and subsequently, their growth.
And this is why many companies are turning to supply chain management software. Indeed, such software has specialised functionality to help companies effectively manage and coordinate the processes involved in collaborating between manufacturers, retailers and transportation/logistics service providers. SCM software also often includes useful features that help to facilitate purchase order processing, inventory management and supplier management/sourcing.
However, at the more sophisticated end of the SCM software spectrum, some have forecasting functionality built in, which can be a very valuable feature. Given that it can often be difficult to predict future consumer trends, there can often be a significant gap between supply and demand; through using algorithms and performing consumption analysis, forecasting tools can help businesses plan more efficiently for their future requirements.
So, whilst the customer may not be overly-concerned with the processes involved in moving a product concept to the shop floor, businesses stand to gain a lot from understanding and managing the supply chain effectively.
Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
The 21st century consumer is spoilt for choice when it comes to shopping for goods and services; and there is certainly a wide range of products to choose from, whatever the occasion.
But it's probably fair to say that very few people ever stop to consider how the goods actually end up in their current form in the first place; from an idea in someone's head to the factory floor, then transported on the back of a truck and taken to their local department store. Indeed, from a customer's point of view, there is probably very little reason to ever consider the journey a product has taken to get to their front room.
However, from a business point of view, managing and monitoring a product's journey is integral to the company's long-term success. What's more, streamlining the process to minimise costs and delays will help to ensure the supply chain is optimised to their own benefit.
Indeed, the main underlying objective of supply chain management (SCM) is to meet the demands of the consumer through efficient use of all resources involved in moving the product or service, from the supplier to the customer. There are, however, many mechanisms in place to ensure that the SCM process runs smoothly from start to finish. This includes clear communication between suppliers to eliminate bottlenecks, and also strategic sourcing to ensure the right balance is struck between material costs and the quality of goods on offer.
But whilst supply chain management requires businesses at every level of the process to cooperate fully with each other, the ultimate goal of individual companies is to fulfil their immediate obligations in moving the product on to the next stage in its journey. As such, any tool of the trade will do if it helps them manage the often complex procedures involved in SCM, thereby increasing their profitability, competitiveness and subsequently, their growth.
And this is why many companies are turning to supply chain management software. Indeed, such software has specialised functionality to help companies effectively manage and coordinate the processes involved in collaborating between manufacturers, retailers and transportation/logistics service providers. SCM software also often includes useful features that help to facilitate purchase order processing, inventory management and supplier management/sourcing.
However, at the more sophisticated end of the SCM software spectrum, some have forecasting functionality built in, which can be a very valuable feature. Given that it can often be difficult to predict future consumer trends, there can often be a significant gap between supply and demand; through using algorithms and performing consumption analysis, forecasting tools can help businesses plan more efficiently for their future requirements.
So, whilst the customer may not be overly-concerned with the processes involved in moving a product concept to the shop floor, businesses stand to gain a lot from understanding and managing the supply chain effectively.
Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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