Operating for Success

Operation of a business successfully requires constant improvement and change.  Five things are suggested to aid in running your business successfully.  Understand the importance of operations and your business; Develop a production-distribution chain; Manage suppliers and inventory; Ensure product quality; and Use technology to benefit your business.  Operations assists a company in delivering its promise to its customers through marketing, finance, and legal guidelines; while yet knowing what is required to produce the desired outcome.  When you have determined what will be required, you can develop the production-distribution chain for your business whether it will be Traditional (manufacturer-wholesaler-retailer-consumer), Direct to Retailer ( manufacturer-retailer-consumer), or Factory Direct (manufacturer/retailer-consumer).  To increase efficiency, a company must work together and apply knowledge gained from suppliers.  Suppliers will beome your partners in business and must be chosen wisely for they will ensure you have what is needed when it is needed and at a price you are willing to pay for it.  Inventory must be managed in a way that will allow customers to be satisfied and at the same time not tie up a business' cash.  Some factors that manage inventory are demand, cost, sales price, carrying costs, order/setup costs, and lead times.  Managing your inventory effectively will bring you a degree of excellence and enhance product quality when customer expectations are met or exceeded.  This done consistently along with the continuous improvement of a product or service, and use of technology will be followed by profits.  Technology has improved over the years and a business should be aware of software and equipment that is relevant to their industry.  Websites, email access, financial and business software, and internet usage can benefit a company greatly allowing it to compete with other businesses in a competitive market.