Economics Process Analysis Essay

Supply Management
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Supply Management
One of the most effective ways of minimizing costs is through improving space utilization. It costs a lot of money to keep supplies and inventory within the organization. In case a manager conducts an in-depth analysis, he can find out that the organization is paying more for the storage space that is not fully utilized (Christopher, 2016). In addition, they might be wasting money paying subordinates who search for the stored items. Therefore, a more effective strategy would be to reduce the amount of free space within the firm. The move would lower the time taken to find and pull items, an aspect that would cut the cost of operation.
Using multiple suppliers would also reduce the costs within the organization. The use of single suppliers eliminates competition. However, relying on several suppliers plays a significant role in increasing competition on prices between the suppliers. Besides, it reduces costly delays which have a major impact on the financial performance of the business.
A supplier manager can lower the costs within the organization by moving supplies faster and reviewing customer demand regularly. Expediting the shipping process from suppliers reduces the time taken to handle supplies. Ordering in advance reduces the warehouse costs. On the other hand, constant reviews of the customers’ tastes and preferences are significant in adjusting the ordering process (Cooper, 2017). This …