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What types of supply chain tools help a company collect data? Please describe two types of tools
Supply chain management tools help a company optimize its production by improving the level of efficiency of purchasing and handling the products and supplies coming in. Two of the commonly used tools are Order processing tools and Bid and Spend tools.
Order Processing tools may be used by companies at the point of material intake. They help companies understand what takes place when suppliers provide them with different products. They therefore help a company with intake analysis to ensure on-time delivery of products to consumers.
Bid and Spend tools help analyze costs incurred during supply chain operations. They therefore help a company determine what is spent on each item that they purchase and sell during production. They also help a company evaluate bids from different suppliers by helping a company consider an opportunity to improve its operations (Ballou, 2003).
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How does supply chain management help a company to improve efficiency and effectiveness?
Efficiency within the supply chain is concerned with the internal standard of performance of a company. An efficient supply chain enables consumers to get products at the lowest cost. Effectiveness may be looked at by considering the external operations of a company. Efficiency and effectiveness can be improved by supporting expansions, driving positive consumer experiences and reducing operating costs (Lee, 2000)).
How does contract bidding improve a company’s financial outcome?
Contract bidding can be used by a company to secure long-term work that can increase its overall financial income. This is because they guarantee a steady cash flows for years. Moreover, by looking for profitable projects to bid on, a company may also seek out other opportunities that may give the best chance to generate more income.
Why is forecasting demand important?
Demand forecasting is an anticipation for the future demand of the products of a company under a set of uncontrollable forces. It plays a vital role in running a company whereby it helps reduce risks and make crucial company decisions. It also provides an insight into a company’s capital investment and expansion decisions. It therefore helps increase customer satisfaction, reduce inventory stock outs, improve production efficiency, and improve pricing and promotion management in a supply chain (Lewis, 1997).
- Ballou R. (2003). Business Logistics/Supply Chain Management and Log ware CD Package. 5th Edition, New Jersey: Prentice Hall, Inc.
- Lee, H. (2000). Creating value through supply chain integration. Supply Chain Management Review, 4, 30–36.
- Lewis D. (1997). Demand Forecasting and Inventory Control: A Computer Aided Learning Approach. New York, John Wiley & Sons, Inc.