Inventory the inventory management method recommended

This preview shows page 8 - 10 out of 20 pages.

Inventory The inventory management method recommended for Hampshire Company is JIT. It is complex and requires commitment, but overall it improves Hampshire Company perspectives as well as customers’ perspectives of Hampshire and improves the relationships between them and their suppliers. According to Inventory management techniques (n.d.), JIT requires a lot of time researching customer buying habits, seasonal demand, and location-based factors in order to better predicate customer demand. Once JIT is correctly and systemically executed it is highly efficient and able to give Hampshire a comparative edge, lower product costs and higher-quality umbrellas, against their competitors and increase their market share. Benchmarking Benchmarking is the comparison of the company’s performance against the performance in the industry or its competitors to identify and learn from best practice (Shirley, 1996). Management uses benchmarks as standards known and as a performance measure to achieve competitiveness in the market place. Many companies use benchmarking to identify problem areas and making the necessary charges (Suttle, 2018).
Image of page 8

Subscribe to view the full document.

HAMPSHIRE COMPANY CASE STUDY                9 Advantage There are many advantages to using benchmarking in terms of improving companies’ performance. Benchmarking can assist in identifying higher costs than its competitors’, which indicates that they need to shop around or negotiate prices with current suppliers. Benchmarking may help pin point the inefficient costs for management reviews. For example, high labor costs may be reduced by implementing more training to improve the quality of work and decrease or eliminated defects. Companies may also use benchmarking to improve product quality by have their engineers purchase leading competitor’s products to study and determine ways to improve the company’s own product (Suttle, 2018). When using benchmarking to improve a company’s overall functions, operations, and services, it will help them increase their sales and profits because customer will notice the company’s improvements in their products which will increases in sales. Approaches There are four approaches to benchmarking (Types of Benchmarking, n.d.) 1. Internal benchmarking - comparing similar business processes within the company a. To achieve the best internal business practices 2. Competitive benchmarking – comparing the company’s performance, product, service, process, and method to its direct competitors a. To better understand the competition as well as the company; combine forces against another common competitor 3. Functional benchmarking – a comparison to similar or identical practices within similar functions outside the industry a. To identify practices that are superior in the functional areas in different industries 4. Generic benchmarking – taking different unrelate business processes or functions that can be practices in a similar way regardless of the industry a.
Image of page 9
Image of page 10

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern