ISSUES IN SUPPLY CHAIN MANAGEMENT :JOJO VITO DESIGNS GALLERY EXPERIENCE

Jojo Vito Designs Gallery is a company which produces products for direct selling and for re-selling by other vendors. Their business operations includes selling in the local, national and even export or International Market. Herewith are some issues or concerns which Jojo Vito Gesigns Gallery had encountered in the field of Supply Chain Management

Transportation and Logistics The heart  of Jojo Vito Designs Gallery supply chain management program is the  transportation and logistics, or translog. Managing the flow of information and goods through the supply chain is a main driver of cost savings and other benefits of  Jojo Vito Designs Gallery Supply Chain  program. This often includes electronic data interchange  or Business to Business (B2B) transactions between Jojo Vito Designs Gallery  and retailers . Establishing the most efficient transportation of goods requires careful inventory management and optimized scheduling of air or ground transport of materials and goods. Avoiding transportation redundancies and waste are vital to Supply Chain Management.

Sourcing For retailers and distributors that are far from the manufacturers and their production facilities can be critical. Generally when supplier and manufacturer are closer when it comes to distance , the more efficient and effective their relationships will be . Other key sourcing considerations include pricing, delivery and payment.  In the case of Jojo Vito Designs Gallery some of our distributors are located in Mindanao and Luzon areas and even abroad the cost and mode of transporting the products and the requirements becomes a big factor.

Inventory Management Jojo Vito Designs is also distributing its product in places outside the province of Negros and the  process of ordering and managing inventory is another huge issue in their supply chain management. In Bacolod Area where they are located ordering and delivery is not a problem.    Distributors and retailers want to balance goals of always having inventory in stock when needed, yet not having excess that is potential for breakage and   are  costly to manage. This is a delicate balance and requires planning. Some distributors and retailers rely on storage warehouses complete with shipping and receiving staff and transportation processes but this also entails cost.  Most  Jojo Vito Designs Gallery’s  business transactions  are based on direct-from-vendor delivery  to stores when they are nearing a low point on inventory.  

Returns Procedures Having an effective procedure for product returns is an important, but often overlooked aspect of Supply Chain Management.  At Jojo Vito designs Gallery’s  breakages and damages during transport is a big factor  in their Supply Chain Management. Products even with slight damage are difficult or will not be sell anymore. Success requires a responsive and flexible plan for accepting defective or extra product.  In most cases the manufacturer will have no choice but to accept returns of damage goods from Retailers. Retailers or  outlets  are usually the direct point of contact for customers that purchase bad products and most often these retailers especially in the case of “Consignment transactions”  will not absorb the cost of broken items. Efficient movement of defective products from the retailer back to the manufacturer for repair or recycling is also necessary. Replacing the customer’s defective purchase quickly is also key. This often means the retailer provides direct replacement and follows through with the manufacturer on the financial aspects of any agreements related to bad product returns. Returns and complains are usually difficult especially if the buyer are located in other places especially in the case of “Export”. Returns for any exported product means so much cost on the part of the manufacturer.