| In the marketing world the focus is on providing | | | | ensures that there is no deficit in on-forwarding |
| what it is that a consumer will purchase. This | | | | distribution processes. Other industries have high-cost |
| ultimately results in the 'making of a sale', revenue | | | | low-turnover inventory items that are critical |
| generation and profits. As a basis for business, | | | | components and not as easily accessed. These items |
| matching a purchaser with a product that they want, | | | | are normally made to order and that makes the |
| is a good starting point. Recently, however, there has | | | | ordering process very important when ensuring that |
| been an epiphany into the processes that are | | | | these items are available in the correct timeframes. |
| involved in ensuring that the purchaser receives their | | | | Breakdowns in this process can have drastic results. |
| selected product in the most time and cost effective | | | | High-priced low-turnover items that are not available |
| manner possible. These processes involve the | | | | on time can result in equipment being unavailable for |
| procurement and management of parts supply and | | | | use. This results in equipment down-time and |
| acquisition, and the supply chain for both their | | | | substantial loss of profits. Similar things can happen |
| acquisition and delivery. | | | | with low-priced high-turnover items. Over-ordering of |
| Any Company who undertakes internal maintenance | | | | an inventory item means additional storage |
| or provides retail maintenance services has a | | | | requirements and further tracking, under-ordering |
| procurement, management and supply chain process | | | | means a loss of profits due to down-time of this |
| in place. The effectiveness of this process is | | | | equipment. Each of these scenarios result in an |
| determined by a variety of factors. These factors | | | | imbalance of the cost and/or profit margin that was |
| include the expertise of the personnel who holds | | | | obtainable -- unnecessary storage costs and |
| positions dealing with this process, the relationships | | | | foregone potential profits. |
| these positions hold with the suppliers as well as | | | | Streamlining this inventory process has become a |
| those who perform the maintenance functions, and | | | | point of focus in the goal of maximising profits. |
| the communication processes used to convey the | | | | Getting this process right means better allocation of |
| current and prospective requirements between both | | | | personnel time, minimising or ultimately removing |
| the suppliers, the distributors and the end-users. | | | | delays in maintenance services which in turn |
| Issues in this process revolve around acquiring and | | | | maximises timely equipment availability which in turn |
| distributing the correct inventory items, to the | | | | results in improved profits. |
| correct persons in the correct quantities, in an | | | | Businesses following these enhancement process are |
| acceptable timeframe. Some industries have lost-cost | | | | not only providing their customers with the products |
| high-turnover inventory items which means keeping | | | | that they want, they are doing it in the most |
| track of lots of things that are moving quickly. | | | | efficient and profitable way for both the consumer |
| Securing the correct quantities of the specific item | | | | and the Company. |