Operational supply chain decisions are made at business locations that affect how products are developed, sold, moved, and manufactured. The decisions are related to the following:
• Purchase Order Management:
The purchase order management approach provides a comprehensive framework for lowering supply chain costs, improving efficiency, eliminating non-value added activities and optimizing the transportation of purchase orders.
• Invoice Management:
Invoice management is a process of reducing the average cost of processing a single invoice and thus, exercising awareness and control on each invoice.
• Data Management:
Data management is an administrative process that includes acquiring, validating, storing, protecting, and processing required data to ensure the accessibility, reliability, and timeliness of the data for its users.
• Spot Buying:
Spot buying is a purchase made for standard off-the-shelf material or equipment, on a one-time basis.
Operational Supply chain management is full of challenges that can result in higher costs, wasted materials, and production errors. By selecting the correct raw materials to use for each application as well as the correct production method, quality and quantity crises can be avoided. By avoiding these crises, lead time is also saved from wasting.
• Warehouse Management:
A warehouse management processes allow organizations to control and administer warehouse operations from the time goods enter a warehouse until they move out. Operations in a warehouse include inventory management, picking processes and auditing.
• Capacity Management:
The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules; i.e., the production plan, initial. Order Handling and lead-time management, slow-moving stock and shortage management, master production schedule, material requirements plan, ramp-up time and dispatch list. Capacity management is executed at four levels in an operational supply chain department: resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control.
• Design Changes Management:
Design for Operational Supply Chain is the process of optimizing the fit between supply chain capabilities and product designs. It creates product configurations that address infrastructure limitations and use supply chain capabilities as they evolve throughout the life of the product. By applying design changes management techniques as early on as the conceptual design stage, a product can be developed from the ground up to be a truly supply-chain-efficient creation. Obsolescence is inevitable and it cannot be avoided so obsolescence management is essential to achieve optimum cost-effectiveness throughout the life cycle of a product.
• Inventory Management:
Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.