Question
4: I have established a system to ensure the continuous supply
of raw materials/inputs at the right prices, correct quality,
on time.
I have established
a system to ensure the continuous supply of raw materials/inputs at the right
prices, correct quality, on time.
The production function can be seen as a chain of events that starts with raw
materials, the production process and ends with customer satisfaction. In other
words, purchasing, manufacturing and distribution (including merchandising and
or after-sales service), are all parts of one integrated production system. Strong
"supply chain management", managing the system from the input procurement
to consumption, ensures happy clientele.
In order to build capacity it is necessary to secure inputs and give consideration
to:
How much will I need?
When will I need it?
From where will it be sourced?
At what price?
The exporter has a systems procedure that will enable one to answer all of these
questions. In other words having an effective and efficient "input system"
is of the utmost importance.
When requiring inputs/raw materials, you should not only consider buying from
local suppliers, but international suppliers too. Where to obtain these suppliers
may not be known to you, some sources of information are: visiting trade fairs
and trade missions, advertisements in trade journals, commercial business directories,
commerce departments of foreign embassies represented in South Africa, banks,
electronic data bases and the internet.
