Category — Operations
Just One Thing: The Backorder Effect on Marketing
Inventory management is a risky business. Too much product on hand increases carrying costs. Too little reduces customer satisfaction. Finding the perfect balance between the two is near impossible.
The best managers know that they are in the risk management business and use every available tool to minimize their exposure. One key component is the cost of backorders. Knowing how much being out of stock costs your company helps refine the order decision.
There are both short-term and long-term costs associated with backorders. The short-term are the processing costs for multiple shipments to customers and receipts from vendors.
The long-term costs should keep you awake at night.
Being out of stock costs you customers. [Read more →]
How to Make Your Holiday Dreams Come True
Summer is officially over. Holiday is just around the corner. Are you ready to make your dreams come true? Or, are you hunkering down, waiting to see what happens?
A great holiday season (translation: profitable) is yours if you take the following steps:
Energize your marketing. People are tired. They are tired of the recession, health care debates, wacky weather, and the same ol’ stuff. They want to have some fun. Money may still be tight, but [Read more →]
Why Buying Lunch for Your Marketing, Operations, & IT Team Leaders is the Best Money You’ll Ever Spend
Does information and ideas flow freely through your organization? Or, do your departments keep to themselves? If your marketing, operations, and IT departments aren’t working well together, it’s because your corporate culture places a higher value on departmental performance than teamwork.
Everyone knows that teams playing well together win more often. It is little surprise when a team comprised of superstars loses to a less talented squad. The stars tend to put their personal objectives ahead of everything else. Your departmental teams work the same way. Their focus is to keep their group on top. They don’t notice that some of the things they do have a negative effect in other areas.
If you try to resolve the issue with a decree, the knee-jerk reaction is resistance and fear. It increases any animosity in your organization. Since lack of information is the reason that there are challenges, try a different approach. Invite your marketing, operations, and IT team leaders to lunch. [Read more →]
