12 Mar Branch Management; The forgotten part of the supply chain.
Companies traditionally think of the supply chain as only being the buy, store, make, sell and ship components. One element that is often overlooked is the management of the facilities that transact along the supply chain. These are the branches.
Traditionally branch management falls within the bounds of the property managers and very little importance is placed on their impact on the supply chain. The function of branches varies widely in the supply chain from simply being order takers, a place for sales people to work from, through to the full inventory holdings, returns and repairs, or the distribution depot model.
Branches impact the cost per transaction, the ability to supply and the customer experience as well as contributing significant costs to the supply chain. Branches operating at the optimal level reduce their impact on supply chain costs.
There are many functions that need managing in these locations. Inventory, procurement, issues management, customer complaints, Returned Material Authorisation, sales performance, customer account application, HR details, safety details, fixed assets plus the normal financial details of leasing and tenancy. These elements are spread across many functions in the business and without having a way to pull the details together and measure them consistently opportunities are missed.
Without managing the branches successfully you cannot benchmark against standards, compare branch performance against others, or know exactly what is going on. The challenge that businesses face is moving their branch thinking from simple property management and product supply and service towards each branch managing cash flow, costs and EBIT.
Company management need a method to compare branches. Financing details need to be related to stock, sales and staff details, as well as occupancy costs. Branches themselves need to have dashboards which clearly show their performance, both in-house and against others.
If you want significant metrics by branch such as sales trend over last 5 years, or sales mix by customer type etc. then you need to consolidate information across the business and report on a branch by branch level.
viisFacility from iViis Limited provides total visibility at a branch level. Identify best practices, increase efficiency, maximise profitability and enhance client service with us.
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