Backflush

CIOP sessions are conducted by a pool of faculties who also offer the other international certification programs. The typical faculties are having experience between 20 to 30 years in the domains of procurement and supply chain and have a wealth of industry and teaching experience. All of them have great passion for teaching and believes in continuous learning and sharing those learnings. The faculties also go through periodic trainings titled “Faculty Development Programs” to keep them abreast with the latest developments in supply chain and teaching methodologies. Basically, all the faculties are practitioners or consultants who work for the industry and teach supply chain during their spare time or execute this as a project.

A backflush is a critical piece to any Econ process and is vital to a robust and competitive E-commerce operation. The backflush is a process in which raw materials are brought into a manufacturing facility, sorted and prepared for production. In an open supply chain, goods can change hands multiple times before they reach the customer. This continual movement of goods adds 

complexity to the overall supply chain process and can inhibit profits. A smooth and consistent backflush can help assure that raw materials and finished goods move quickly through the supply chain and to the final destination without any delays or disruptions. This means increased profits for the company because there is less downtime and they don't have to worry about having enough of an inventory on hand to meet their customer's orders.

A backflush analysis should be performed before a company decides to build an in-house inventory or to outsource that function to another organization. It is important to make sure that the warehouse will have adequate space to hold the number of products that will be produced in the anticipated volume. The warehouse must also have enough storage to hold the back stocks, as well as the raw materials that are used in the manufacture of the products. Finally, the inventory needs to be maintained at a level that will allow it to be handled throughout the day without the need for additional storage or a backflush.

One of the most important things for companies to look at in a backflush analysis is the cost per product. While it may seem like common sense that the lower the cost of production, the better the profits, it is sometimes necessary to pass that cost on to the customer in order to meet their order volume requirements. There may be times when a higher than average profit margin is necessary to meet financial obligations and this should be taken into consideration when determining the cost per product. Every business, no matter what the industry is, needs to be able to determine their cost per product and adjust their inventory levels accordingly.

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