Evaluating Supply Management

Evaluating Supply Management Costing Data

Operation and Supply Management is the design, operation, and improvement of the system that creates and deliver a company primary products / goods or services.

At the most fundamental level, operations and supply management is about getting work done quickly, efficiently, without error and at a lower cost.

Supply management - describe the processes used companies to purchase inventory and distribute items that are used in the ongoing operations of the business. The process of supply management is concerned with the raw materials used in production as well as office supplies, components for machine repair, and any other items that are used internally for the ongoing function of the company. The objective of supply chain management is to balance the components (raw mat as well as components) on hand when required with maintaining a small inventory with satisfying the customer needs/

With small inventory on hand (work in process items) the lead time of supping goods to the customer is short.

For many companies, the supply management process begins with a central purchasing department. This department actively coordinates the purchase of raw materials, replacement parts and supplies .A purchasing department will seek to find cost efficient suppliers and establish relationships that allow the company to purchase items either on an as-needed basis or on a pre-determined schedule that can be amended when necessary. The department then coordinates delivery of the items so that they arrive at plant facilities shortly before they are needed.

Supply management also establish the usage of components .By coordinating the purchasing with usage, the supply management process accomplishes two things. First, the process makes it possible to design and remain in a workable budget, ensuring that the materials and other items needed to keep the company functional are always present. Second, effective supply management also makes...