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Essential Business Management Practices

The document outlines various core business functions including procurement practices, management control, product and services management, quality management, inventory management, logistics, facilities management, configuration management, and distribution channels. Each section describes the significance and processes involved in these functions, emphasizing the importance of coordination, quality, and efficient operations. Overall, it highlights how these elements contribute to a company's success and responsiveness to market demands.

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Austin Dryke
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5 views5 pages

Essential Business Management Practices

The document outlines various core business functions including procurement practices, management control, product and services management, quality management, inventory management, logistics, facilities management, configuration management, and distribution channels. Each section describes the significance and processes involved in these functions, emphasizing the importance of coordination, quality, and efficient operations. Overall, it highlights how these elements contribute to a company's success and responsiveness to market demands.

Uploaded by

Austin Dryke
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

PROCUREMENT PRACTICES
Procurement is one of your core business activities, as it affects almost every
aspect of your company’s operations and profit margins. Yet, so often, purchasing teams
have to work with outdated processes and tools.

COMMON PROCUREMENT PROCESS


 Identify internal needs
 Research suppliers
 Pick a supplier
 Initiate procurement negotiation
 Create a purchase order
 Approve purchase order
 Send purchase order to the supplier
 Receive goods
 Receive supplier invoice
 Pay invoice
 Maintain records

2. Management Control and Coordinating Function

Co-ordination means orderly arrangement of group efforts to provide unity of


action in the pursuit of a common goal. The significance of co-ordination as a function of
management arises mainly from the fact that without harmonized efforts, different
activities may result in neglect of the organizational goals.

Here's an example: Mary is the manager of a world-renowned bakery. Each day,


she must coordinate a number of activities and duties to ensure that the bakery is kept
efficient. Mary directs her team of bakers and checks in regularly to verify their progress.

3. Product and Services Management


What is product service management? Product service management (sometimes
product/service management) is the process of shaping a company's offerings in response
to demand stemming from market fluctuations. A product service manager (PSM)
anticipates customer needs and then guides product development to meet them.

4. Quality Management

Quality management is the act of overseeing all activities and tasks that must be
accomplished to maintain a desired level of excellence. This includes the determination
of a quality policy, creating and implementing quality planning and assurance, and
quality control and quality improvement.

5. Inventory
Management
Inventory management refers to the process of ordering, storing, using, and
selling a company's inventory. This includes the management of raw materials,
components, and finished products, as well as warehousing and processing of such items.

6. Logistics and Transportation Management


Logistics and transportation management involves coordinating and executing
activities related to the movement and storage of goods across the supply chain. It includes
managing transportation logistics, optimizing routes and modes, and overseeing activities
such as procurement, warehousing, and order fulfillment.

7. Facilities Management

Facilities management helps ensure the functionality, comfort, safety and


efficiency of buildings and grounds, infrastructure and real estate. Facilities management
includes: Lease management, including lease administration and accounting. Capital
project planning and management.

8. Configuration Management

the process of maintaining systems, such as computer hardware and software, in a


desired state. Configuration Management (CM) is also a method of ensuring that systems
perform in a manner consistent with expectations over time.

9. Distribution Channels
Distribution channels are an important element of a business's marketing
processes. When you pick a distribution channel, you choose your product's route from
the manufacturer to the customer. There are several ways to distribute your product
depending on your market, business and product to determine which distribution channels
are the best fit.

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