Movement toward such a set-up would begin with implementing a new computer system that has the capability of networking all members of the company together so everyone is on the same page. All aspects of the process would be online and automated to make jobs easier for researcher or the sales person. The possibilities are endless on how value can be added at each step with just a change in IT equipment and training.
It is believed that by introducing a new company wide computer system, this will reduce inefficiency for customer orders, automate tracking of inventory and encourage communications across the company. These are positive outcomes that have a direct relationship with operating costs. By having the tools to promote these activities within the office, creates a uniform way of doing business and maintains the company's image and identity to the public. By promoting these functions, will aid in reducing overall costs of operation, therefore, allowing the company to invest those funds back into the project or later when the project is completed into other company interests such as acquisition of new stores. By introducing a new computer system and an integrated tracking format for customer orders, makes the management of supplies easier for the employees. This type of automation may require outside sourcing to an independent IT company as to avoid continued cost involved with maintaining such a system. This reduces costs of hiring new employees and training of existing staff.
Externally, a sign of successful logistics is reliance on very little warehousing. In other words, warehousing is measured as the amount of days per month a product sits in the warehouse and if logistics is implemented effectively, this number will decrease and stabilize. The retail average storage of inventory is 26 days of investment not being utilized, profit being lost and daily expenses being incurred in an endless holding pattern.
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