A CFO’s world is all about balancing cost with what the company needs to grow the bottom line. On bad days, improving operational efficiency while controlling costs associated with reverse logistics seems like an impossible job, one that’s heaped on an already large pile of responsibilities. The following three tasks are some of the most crucial. How you respond to them can make all the difference for your company’s long-term growth, its customers, and reputation.
Defining total cost of ownership (TCO) is a challenge, particularly in the reverse supply chain. TCO calculations have to include the entire product lifecycle: R&D, sales, manufacturing, service/repair, and end-of-life management.
Important considerations include:
Solid, accurate data and sound planning make it possible to reduce TCO by addressing the hidden costs and uncertainties unique to the reverse logistics supply chain. When carefully executed, your service supply chain can be a source of positive ROI instead of a drag on profits, but many complex pieces have to come together for that to happen.
When you hear the words “explosive growth,” they sound positive at first. However, consider that an “explosion” is a rather violent occurrence where something (your company?) may fly into pieces or break up violently. Up to two-thirds of the fastest-growing companies are likely to fail, partly because they grow too fast and can’t adapt.
In order to reap the rewards of growth, finance officers must work with cross-functional departments to devise processes that meet the challenges while controlling costs associated with expansion, particularly on the international stage. Questions to ask your company:
Practically every news cycle brings word of new trade tensions, tariff threats, and political squabbles, so risk management is more important than ever. Yet, about half of companies don’t have a chief risk officer (CRO). Someone has to think about it though because risk management is a crucial part of managing reverse logistics in a global service supply chain where every disruption carries a price tag.
Here are just a few of the many situations that can increase a company’s TCO, disrupt production and deliveries, and damage a company’s reputation:
As someone charged with managing the company’s finances, CFOs and financial managers understand the critical need to anticipate risk and make contingency plans, especially if the company doesn’t have a CRO.
If a spare part isn’t available when your customers need it, they don’t care why; they just want a replacement pronto. Ideally, you have systems in place to anticipate issues and proactively solve problems before you receive complaints. Flash Global can help streamline your reverse logistics program.
Our dynamic software, FlashTrac, paired with our warehouse and distribution model, can help your company meet or exceed your KPI targets in shipping and receiving accuracy, on-time performance metrics, inventory accuracy, and dock-to-stock on-time performance. All these achievements can save your company money, help satisfy customers, and protect your brand.
Look at what FlashTrac can do for you:
Flash Global has the experienced personnel and infrastructure to help your company manage growth and expansion. We offer:
We can help you better support your customers and save money. It’s win-win scenario. Contact us today to learn more.