I went to the bank to cash a check. The teller said there was no cash available. She also said the automatic teller machine (ATM) also had no cash and was off-line. The teller, however, told me to wait. She then left the bank, went next door to a rival bank, and withdrew cash fromContinue reading “Banks Have Supply Chains, Too”
Tag Archives: finance
Knowing Your Inventory ABC’s
A business owner asked me: how can I manage my company’s inventories more efficiently? The business owner imported soap, luggage, and cell phones, in short: assorted merchandise. He shipped in and kept hundreds of items in inventory, in which he had trouble keeping track. Sometimes he had too many items in storage or had tooContinue reading “Knowing Your Inventory ABC’s”
The Benefits & Pitfalls of Commodities Trading
A commodity trader at a food company observed that prices of coconut oil, an ingredient in most of the company’s products, was forecast to trend higher. He, therefore, ordered more than two (2) months’ supply of coconut oil, buying from several vendors who offered the lowest prices. When the coconut oil price indeed increased daysContinue reading “The Benefits & Pitfalls of Commodities Trading”
The Two Fundamental Tasks of Business
A business enterprise has two fundamental tasks: All activities of an enterprise revolve around these two tasks. Demand creation is about cultivating an idea, enrolling followers to that idea, and manifesting that idea in products or services that the followers would buy. Demand fulfilment is about making available or delivering those products and services thatContinue reading “The Two Fundamental Tasks of Business”
Who’s Responsible for Collections?
It’s a question that bothers many organizations. Who should be responsible for collecting debts from customers? Some people say it should be Sales, because a sale to a customer ends not with an order that is delivered but with an order that is collected. Others say it should be the Supply Chain, particularly Logistics, orContinue reading “Who’s Responsible for Collections?”
Formulating the Operations Strategy
Every enterprise has a strategy. Not all have an operations strategy. A strategy is not a vision nor is it a mission. A strategy is also not a goal and nor is it an action plan. A vision is a desired future state. Where do we want to be 1 to 5 years from now?Continue reading “Formulating the Operations Strategy”
Solving Problems, Cultivating Ideas Together
I worked for Procter & Gamble Philippines in the late 1980’s. I was a production manager who oversaw the food packing lines of the company. As production manager, I was invited at times to join the food brand team meetings led by marketing managers, who were responsible for their respective products’ success. P&G is famousContinue reading “Solving Problems, Cultivating Ideas Together”
Non-Moving Inventories: The Supply Chain’s Elephant in the Room
The phrase, “elephant in the room,” is said to have originated from a fable by Ivan Krylov that tells about “a man who goes to a museum and notices all sorts of tiny things, but fails to notice an elephant.” It has become a favourite expression for an obvious problem or issue that for someContinue reading “Non-Moving Inventories: The Supply Chain’s Elephant in the Room”
Ellery's Essays 