Running a successful procurement department isn’t something that’s going to happen at the flip of a switch. In order to get efficiency at an optimal position, it’s important for clear goals to be in place. But for the goals to matter, it takes a dedicated and knowledgeable staff to be able to spot the mistakes. The easiest way to diminish human error is through diligent processing or perhaps the implementation of ERP manufacturing tools.
Here are a couple of the easiest ways to disastrously mess up the flow of production and destroy efficiency – do your best to avoid them!
Rushed Buying
This is likely the first mistake a procurement department at any company will make. This is typically found in newer businesses, but is still very possible in established companies if their procurement department is new and hasn’t quite become fully operational yet. The most common reason for rushed buying is that the company or department responsible for procuring items feels like they need to have everything ordered as soon as possible. Securing goods and procurements in a timely manner is a great quality to have, but making sure everything is purchased in the proper order is even more important. When you find the balance between being thorough and being prompt, the entire department will flow much smoother, with minimal headaches.
Inadequate Attention to Detail
The emphasis on being thorough cannot be overstated, with as many pieces as there are all the way along the supply chain, it is very easy to make common mistakes. Duplicate orders, while at a small scale, may seem like a trivial and perhaps unavoidable feature of business. But, when implementing large scale installations to a huge global conglomerate, simple errors can be catastrophic. Misunderstandings of contractual obligations can also lead to unnecessary stress on partnerships, which can lead to greater problems related to the infrastructure of your business. If your brand is a large part of your corporate identity, be sure to not procure items that may tarnish or otherwise conflict with your brand’s image. For instance, if your company’s marketing posits the company as against animal testing, procuring products from a manufacturer involved with, or more importantly seen to be involved with, companies who are associated with the harm of animals might be averse to your marketing goals.
These types of errors are emblematic of the human condition and most likely cannot be eradicated, however, they can be minimized with the implementation of ERP manufacturing software like that of Kenandy.
Poor NPI Project Management
New and unique products are the keys to success within today’s quickly adapting economy. New product introductions (NPI) are complex projects, and depending on how many components the new product is composed of, could involve a dense network of subassemblies. If a new product contains fifty new parts, you now have fifty new sub-projects you need to design, source, and qualify before final assembly. Each of those sub-projects also involve coordinating the activity of several high-level sectors: design engineering, compliance management, component engineering, manufacturing engineering and quality control.
With all these moving pieces, it takes a diligent project manager to avoid the infrastructure potholes and guide the project to completion.
from Darlene Milligan http://ift.tt/21joKA9 via transformational marketing
from Tumblr http://ift.tt/1URVOPU
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