Redundant Costs

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

In order to maximise your company's bottom line you need to minimise Redundant Costs. Redundant costs are waste or excess production due to inefficiencies within the supply chain and/or because the supplier has passed on the cost of that particular product to another vendor. If this happens it is a loss to your business, sometimes in days, sometimes over months, years, however long it takes. Redundant costs can be both expensive and hard to identify. This article will explore the meaning of each term and how you can utilise the information to optimise your company's ability to minimise these costs.

"Cash Conversion Cycle" or "CCC" is an Excel template created by Dr Peter Lowe to identify various costs of goods being produced in your business. These include the direct costs of raw materials, indirect costs of labour and production staff costs. The spreadsheet can be used to analyse how different production functions affect the cash-flow situation of a business. The spreadsheet was first put into use by Lowe as part of his master thesis project at the University of Oxford, UK.

The next time you find yourself wondering if there's any way that you can cut expenses without increasing your income, ask yourself if you're using an Excel template to calculate all of these various costs. Once you've created an Excel template for calculating all of your various costs, you should then be able to quickly identify which costs need to be converted into cash and which should be delayed until the next billing cycle begins. This can help you focus on maximising your profit margins, reduce your financial liabilities and improve your cash flow whilst businesses fixate on crafting new offerings for new markets or generating new sales.

Certified Inventory Optimization Professional 

CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security. 

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CIOP Knowledge Series

One-Minute Supply Chain Facts

The most recent video is available here. To access the past videos in the One-Minute Supply Chain Facts Series, please click the playlist icon located on the Top-Right of the video.





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