Process Mgmt, Inventory Mgmt and Logistics
To stay competitive, businesses- whether big or small- face the daunting task of managing their day-to-day operations. The right kind and approach to management makes a big difference in the survival and success of any company. The benefits derived from an integrated management can be dramatic even for companies that are still new and small. Some of the common and crucial elements in management are process management, inventory management and logistics. Process management is the field in management that pertains to all activities required in a specific business process or method (BPMEnterprise.
com, 2009). It may also be called as business process management (BPM). A company’s BPM is an aggregate of all tools, systems, and techniques needed to “create, define, envision, measure, report, control and improve” its course of action (2009). Essentially, the goal of BPM is to ensure that process will be smooth flowing not only for the users and the company as well. Furthermore, BPM is created to improve an organization’s workflow. Usually, when talking about BPM, the term reengineering is used. BPM is used to “re-engineer a process (MobiERP. com, 2006).
Process improvement techniques like Six Sigma and Total Quality Management are part of BPM (2006). BPM aims to minimize errors with the least human interference (2006). Aside from the aforementioned Sig Sigma and TQM, there exist BPM software tools designed to address even the most taxing business processes. Another important aspect in management is implementing inventory control. Inventory management refers to the techniques, policies and measures an organization uses to maintain an optimum number of stocks so as not to delay action or service (Center for Disease Control and Prevention, n. d. ).
Inventory management aims to guard against fraud, losses, and pilferage in any business. It used to be that inventory management was viewed as an internal procedure (Clear Spider Inc. , 2008). This means that a business entity will build its own warehouse and manage their inventory or their own. However, there are instances when inventory management are not handled well due to lack of staff or trained staff or it may be that inventory management is taking up the bulk of the day-to-day operations. Thus, it is important to develop and implement an effective inventory management.
To do this, the organization must be able to identify three things: product demand, inventory costs and supply chain capabilities (Dooley, 2005). There are usually three approaches in inventory management. First is to adopt an inventory control approach where inventory is done per item. The second approach is when companies utilize flow management to track inventory. This is usually done by businesses that prioritize production scheduling (2005). The last approach is when companies do not engage aggressively in their inventory management (2005).
With the advent of technology, there are now modern approaches in inventory management. Some organizations can now outsource their inventory so they can concentrate on marketing and product development. There are a number of supply-chain solutions providers that can give accurate and updated information on inventory levels, track sloe-and fast moving items and reschedule reorders. Defined as the administration of operations, which includes purchase, storage, transportation and delivery of goods, information and other resources, logistics is an important facet of the company’s supply chain (Investor Words, n. d. ).
Logistics is important for it controls the flow of good from the origin to the recipient in order to meet the expectations and requirements of an organization’s client. Logistics include not only the inbound movement but the outbound as well, which makes it more difficult. Armed with the proper knowledge on logistics, an organization may be able to set up an effective and efficient supply chain management, saving not time but more importantly money and resources. Effective management may be difficult to achieve.
One may start with defining process management, inventory management and logistics. The three elements are crucial tools in increasing an organization’s effectiveness and competitiveness. References BPMEnterptise. com (2009). Business process management (BPM)- what is business process management. Retrieved April 24, 2009, from BPMEnterprise Website: http://www. bpmenterprise. com Center for Disease Control and Prevention (n. d. ). Inventory Management (MS Powerpoint Presentation). Retrieved April 24, 2009, from Kurt Martsolf Website: http://www. martsolf. com. Clear Spider Inc.
(2008). Managing inventory outside the four walls. Retrieved April 24, 2009, from Clear Spider Inc. Website: http://www. clearspider. com Dooley, F. (2005). Logistics, inventory control and supply chain management. Retrieved April 24, 2009, from Choices Magazine Website: http://www. choicesmagazine. com InvestorWords (n. d. ). Logistics definition. Retrieved April 24, 2009,from InvestorWords Website: http://www. investorwords. com MobiERP. com (2006). Process management: everything you need to know Retrieved April 24, 2009, from MobieERP website: http://www. mobierp. comSample Essay of Eduzaurus.com