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The Resilient Supply Chain: What If You Sell More?
From:
Lisa Anderson M.B.A. - Manufacturing and Supply Chain Management Consulting Lisa Anderson M.B.A. - Manufacturing and Supply Chain Management Consulting
For Immediate Release:
Dateline: Claremont , CA
Monday, January 07, 2019

 

Most sales people answer the question “What if you sell more?” with a cheer. Most accountants would add up the additional revenue and profit.  And, often, the Operations resources would be glad the leaders are in a good mood. But does anyone know if we are set up to successfully handle increased sales if they occur?

There are several questions to consider in evaluating ‘what if you sell more’. It all boils down to capacity.

  1.  Machine Capacity – Do you have the machine capacity to keep up with the increased demand?  If not, can you retrofit a machine? Can you use a machine from another facility?
  2.  Labor Capacity – It is very frequently a significantly bigger issue than anything else. Do you have the people to turn up the volume?  Can you add another shift? How about overtime? Do you have a partner who can supply temporary workers as needed? If you have the sheer numbers of people, the question becomes, do you have people with the appropriate skills for the specific products being sold?
  3.  Supplier Capacity – Even if you have the manufacturing and logistics capacity, it won’t matter if your suppliers cannot keep up with demand.  What are your suppliers’ expectations? Do they have flex capacity? Will they prioritize you?
  4.  Cash Reserves Capacity – None of this matters if you do not have the cash reserves or liquidity to fund sales growth.  Aggressive growth sounds like a pleasant problem to have vs. cutting back. However, if you cannot fund growth, it can quickly become unpleasant.
  5. Infrastructure Capacity – Will your internal people, processes and systems support the increased demand?  Will increased volume lead to decreased margins? Customer complaints? Loss of visibility? Or can you scale effortlessly?

As much as selling more is a great problem to have, it pays to think about it before you run into it unexpectedly.  Some companies get carried away with rules and regulations designed to stifle Sales. That doesn’t work either!

Instead, think proactively. Plan for the likely.  Think through contingencies.  Remain light on your feet.  And, you’ll be able to answer the question, ‘what if you sell more?’ with a resounding “YES!”.

Tags: accountants, cash reserves, contingencies, flex capacity, labor capacity, machine capacity, overtime, revenue, sell, workers

About ASCM and APICS
ASCM is the global leader in supply chain organizational transformation, innovation and leadership. ASCM is built on the foundation of APICS certification and training spanning 60 years. APICS provides world-class supply chain training and certification to foster supply chain talent and improve end-to-end performance. APCIS sets the standard for supply chain education, through outstanding training, certification and community programs..


About APICS – Inland Empire
The APICS Inland Empire Chapter (APICS-IE) covers the Inland Empire region of Southern California, which spans the easternmost portion of Los Angeles county and includes San Bernardino and Riverside counties.  The chapter offers educational classes, programs and special events in the hotbeds of manufacturing, distribution and transportation activity including Ontario, Riverside and Temecula.  APICS-IE partners with other organizations supporting manufacturing and distribution such as the DMA (Distribution Management Association), neighboring APICS chapters, industry leaders and government officials in support of furthering the region’s workforce development and growth.

Media Contact                                                             

Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 - 4080 | KMcEntee@KMcEnteeAssoc.com                                                 
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President
LMA Consulting Group, Inc.
Claremont, CA
909-630-3943