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Tuesday, March 3, 2015

Factors Involved In Manufacturing Supply Chain

By Earlene McGee


Strict procedure has to be followed to ensure safe and prompt production. This is a general rule followed by business. Good planning has to include the specifics strategy on how they can come up with the required produce for the month or for the day. Needless to say, this strategy has to be followed strictly.

There are a lot of factors involved in the production process. This is why a manufacturing supply chain has to be created. Its model can vary from industry to industry, but its function is the same. It details the definite methods and steps on how a company can deliver the expected output from them.

Regardless of what your position is in the company, if you are in one way or another involved in the manufacturing arena, you need to know the basics. This will help you easier understand the step by step methods that have to be performed to see your plan come into fruition. Below are the factors that are of major importance to the production.

Concept of the project. All things start with an idea. This is where creativity and resourcefulness is used at the highest level. Those who are involved in the planning have to have a wider vision on what the project would look like and the specific ways on how to implement the step by step process. It is by conceptualizing that they get to see some problems that they may encounter. This is also where they create alternative methods in case the original plant does not work.

Raw materials to be used. To start the production, the procurement of the appropriate raw materials have to take precedence. Its cost, supplier and quality all have to be taken into consideration. It is better to work on alternative suppliers to compare who among them can offer you a better deal with the same quality of goods.

Manufacturing facility. The creation process begins as soon as all the needed tools are secured. The area where the products will be created also have to be considered. How good are the equipment, are they capable of handling the workload, is there a need for additional. Things like this are addressed before men starts their work in manufacturing.

Transportation. This has something to do with the delivery of the finished output to different shops. The mode of delivery, the expense and certain certification if delivered out of the country has to be passed beforehand. The cost of transportation can cost high depending on the destination so having firsthand estimation will help a lot in budgeting.

Retail. Once the product has reached the doorsteps of reliable sellers, final agreement has to be made. Written contract signed by both parties detailing important terms have to be agreed upon. Standardization of price happens here. Should there be any special reminders in storing the goods, the manufacturer should also discuss it here.

Process matters. No matter how good the strategy is, if the team fails to follow the step by step method to finish the project, adhering to the market demand can be difficult. Evaluate your companys plan right now and see if every aspect is taken care of. Take time to review it with peers. Ask second opinion from co managers to be sure.




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