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Management

Advantages and Disadvantages of Standardization

Last Updated on May 25, 2022 By Methew Harbor Leave a Comment

Standardization is an excellent process to make sure that your consumers get the same product every time. It builds their trust in your product or service. Standardization also allows you to build a loyal customer base by providing them with the same product they use the first time. If a product is not standardized, it might not gain the same kind of popularity. Customers believe that a company that puts effort into standardization cares about them. Standardization also has a few demerits for business owners. Let’s tell you about the advantages and disadvantages of standardization in detail.

What is Standardization?

Standardization in an industry refers to maintaining consistency among the services and products offered by a company. The services in all aspects must offer the same core values. Similarly, the products must have the same quality throughout. If any changes are made, they must not affect the characteristics of the goods.

 A company follows a particular set of protocols to ensure that the product or service is consistent. They devise the strategies once and make sure to adhere to them. Mostly these guidelines are per the national standards. However, you must follow international regulations when producing goods for the international market.

Standardizing a product or service is based on following the safety protocols and considering the needs of the consumers. It requires adapting the same technology for producing that product and checking product quality on the same parameters. Every product or service has particular standards to ensure consistency and uniformity.

Advantages of Standardization

Improved Production Efficiency

The production efficiency improves when the technology and manufacturing methods are designed per a specific product. When you produce a product according to the same standards, you do not have to worry about innovation. Establishing production rules and manufacturing goods on predetermined standards reduces time and enhances manufacturing efficiency.

Cost Reduction

Better production efficiency also means reduced cost. When the production facility is designed to produce one kind of product only, buying the raw material in bulk brings down the cost. You do not have to spend more money adjusting the machinery to different products or variations of the product. It also saves the added cost of varying raw materials and maintenance. Producing products according to a standard without any changes lessens the cost.

Quality Assurance

Using Technology

Standardization of a service or product ensures that all pieces of a particular product are of the same quality. Having a standard quality standard for all enables you to detect issues with the product. The quality checkers and assurance officers make sure to check the products before packing. The quality of the product and packaging gives the customers a sense of satisfaction with a high-quality product.

Adaption Cost Reduction

Having a standardized process avoids the cost of adaptation. It is more expensive to devise a particular service or good for a specific consumer base. Customizing a product requires gathering data, extensive searching, and looking for various marketing techniques to attract customers. Standardizing a product helps you save the cost of customizing the product. The saved cost depends on the company’s manufacturing.

International Opportunities

Reaching the international market has enabled companies to make more profit by catering to a wider customer base. Today, globalization has caused an increase in the need for similar products of the best quality. People are looking to buy products from different countries. Catering to international markets requires you to make sure each product is uniform. By producing standardized products, you can sell your products beyond borders.

Consumer Benefits

Standardization of a product reduces confusion among consumers. When consumers are aware of the quality standards of a product, they do not look for other options. On the contrary, if the product is not uniform and does not meet the standard of the consumers, they avoid it. Product standardization provides safe, better-quality products to the customers.

Disadvantages of Standardization

Equipment Differences

Standardizing products is not feasible when the product is manufactured in multiple production facilities. Various countries have specific systems and equipment that may differ from other locations. Sometimes, the equipment might not have the same specifications either. Thus, you will need to adjust the equipment per need.

Failure to Adapt

Today, consumers want to get the most according to the changing trends. Many consumers purchase the same standardized products, while others like innovation in the products. Focusing on providing the same features in a product over the years might push the customers to another company. Standardization halts you from catering to the needs of such customers.

Cultural Differences

Product or service standardization is not the best choice sometimes. It may not prove feasible when catering to people from different backgrounds. For example, some tea containing alcohol components is not the right choice for some cultures. It is not labeled halal and is unsuitable for selling globally in Muslim countries. It is better to customize products depending on the customer’s needs.

The Bottom Line

Standardization helps provide uniform and consistent quality products to the customers. It enables them to trust your brand and becomes loyal customers. However, it also hinders adaptation to the modern needs of the consumers. Standardization and customization must work according to the regional and individual consumer requirements.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Management vs Supervision

Last Updated on May 23, 2022 By Methew Harbor Leave a Comment

Manager and supervisor are often used interchangeably in conversations. While organizations have a different hierarchy of roles and designations, management and supervision are quite different. People who supervise employees are called supervisors, whereas those who manage tasks within a department are known as managers.

Now, you may wonder; that sounds the same!

Yes, that does sound the same. Managers and supervisors both have leadership roles within the company. But, they are not identical in terms of responsibility and authority. Let’s take you through the differences between management and supervision for a detailed understanding.

What is a Manager?

The primary function of a manager is to manage how things take place in a department. Managers typically make decisions about a business in a particular domain or various areas of business operation. They are involved in recruiting new people, identifying jobs of other employees working under them, and ensuring the completion of tasks on time. They also determine the resources utilized by their department to execute specific tasks. For example, a quality control manager is responsible for ensuring that all the processes are aligned, and the products are of standard quality. Yet, he might not go to the processing facility all the time to access work.

Roles of Management

The four major roles include planning, organizing, leading, and controlling. Management plans the timelines for the department and organizes pathways to achieve the timelines and goals. They make sure to be the leaders in situations employees need their assistance to perform better. Other roles of management include:

  • Dealing with the issues within the workplace when brought to them by the supervisors.
  • Make sure that the supervisors are kind and fair to the workers.
  • Evaluating the performance and competency of employees and finding the reason for poor performance.
  • Managers also assist the HR professionals in HR functions including hiring and staffing to ensure they find the best fit for their department.
  • Making decisions for the designated responsibilities for the best benefit of the company and the employees.
  • Controlling and monitoring expenses, and managing them within the budget.
  • Setting goals for the future and encouraging other teammates to perform their best.

What is a Supervisor?

supervision

Supervisors also have a leadership role in the company. But, they work under the manager. Supervision mainly includes keeping an eye on the employees’ day-to-day activities in the department. They ensure that the tasks are completed in time by the works, and the goals are achieved per the manager’s instructions and timeline. They also act as a bridge between employees and the upper hierarchy. Supervisors usually have an informal relationship with their workers to encourage them to do better. They initially study a situation to assess if it needs the manager’s attention.

Roles of Supervision

As manager leads the supervisors, they lead other workers under them. Major roles of supervision in a company are:

  • While the manager contributes to hiring new talent, supervisors train them to gel in the environment.
  • Reporting to seniors and HR professionals when needed.
  • Accessing the performance of the workers and reporting their evaluation to the managers.
  • Acting as a connector between the manager and the employees.
  • Resolving conflicts between employees if they are not significant enough to be forwarded to the manager.
  • Managing schedules and keeping everyone on track to ensure that all goals are achieved in time.

Management vs Supervision

As mentioned already, management is the manager’s job, while supervision is the supervisor’s task. Here are all the differences between manager and supervisor to help you understand Management vs Supervision.

Role

Manager

A manager’s role in a company is to create goals and encourage the employees to achieve them. He focuses on the management processes and is concerned with timely finishing projects.

Supervisor

The supervisor accesses the individual performance of workers and their contribution to the operation. He makes sure that all the processes are moving according to the timeline and takes care of daily functional activities.

Position

Manager

A manager has a middle-level managerial position, and he is directly connected to the upper hierarchy.

Supervisor

Conversely, the supervisor is in a low-level leadership position where he deals with the workers. He cannot directly connect to the CEO or Board of Directors.

Responsibilities 

Manager

Managers have various responsibilities within the company like discussing the budget, managing tasks, and supervisors, communicating with the company leaders, evaluating the performance of employees and supervisors, and ensuring goal achievement.

Supervisor

Supervisors deal with the workers directly, resolve their disputes, monitor daily assigned tasks, manage workflow, and train new employees.

Decision-making

Manager

Managers are the decision-makers in a business, especially in their department. They decide goals, budget, and the timeline for projects. Managers can also make different types of decisions about the promotion and demotion of employees.

Supervisor

While supervisors can recommend a worker for a different (or better) position, they are not decision-makers. They rely on the decisions made by managers.

Now Hiring

Manager

Managers work with the Human Resource department to hire new talent per the department’s needs.

Supervisor

Supervisors are not involved in the hiring process. Instead, they are responsible for training the new hires and accustoming them to the company.

The Bottom Line

Management and supervision are both essential parts for a company to function properly. It is difficult for the manager to monitor every employee’s performance. That is why supervisors are assigned over a group of employees. Managers hire new people with HR, manage the budget, and deal with the issues between supervisors and employees. Conversely, supervisors train new employees, evaluate their performance, make decisions, and set goals for the future.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Disrupt the Process rather than the Product–Product Manager’s role in disruptive market forces

Last Updated on May 5, 2022 By Ifama Leave a Comment

Nearly three decades after the theory of disruption was introduced in business, entrepreneurs, marketers, and design engineers are still grappling to find the correct definition and implementation for it.

Disruptive innovation is broadly defined as designing a novel product or service that addresses the needs of some niche customers and then is scaled up to challenge the established players in the market. Gartner defines it as, “The process of conceiving, defining, delivering, monitoring and refining products in, and withdrawing products from, a market in order to maximize business results.”

The architect of disruption theory, Clayton M. Christensen, and his co-authors say that if product managers fail to understand the disruption theory and are unsuccessful in applying its tenets correctly to their product, then the whole business strategy of a company or business goes haywire.

manager explaining product description

Disruptive Innovation

What is moot to the whole disruptive debate and the concomitant disruptive innovation is that it is a process. According to Christensen, healthy “disruption” is not confined to end products, but it disrupts the processes that lead to the end product and creates lasting value for the business.

Innovative disruption is routinely used for any situation that disrupts an industry leader’s position in the market. This means that no distinction is made about the innovation’s impact on a particular industry or situation.

What needs to be kept in mind is that industry disruptions are ongoing conditions and not sudden transient happenings that disrupt and disappear.

Organizations that have agile teams have a competitive advantage, and those who don’t, should focus on building one so that they can become resilient and adapt to a rapidly changing environment.

Product Manager’s Role in Changing Processes

Product managers many times fail to use innovations in the correct context. Conventional product management isn’t geared towards seamless experiences for the customers or giving agile holistic solutions for any disruptive market problems.

Today, product managers are expected to leverage their skills across the board of a product life cycle to impact an organization’s development and strategies.

They have evolved from being mere departmental heads to be now known as the “ground level CEOs” involved in driving a company’s core policies.

Transition to this position by enrolling in product management courses in India and hone your skills. Create strategic value and solutions at both the product level and the processes that shape it.

Customer-centric

This highly data-driven field is customer-centric. Product managers keep an eye on the evolving market and changing customer needs. The pandemic has brought about sweeping changes in customer behavior, Pre-Pandemic, there were clear signals about market trends and customer behavior patterns to follow, but the pandemic has been a great disruptor with consumers demanding easier, accessible, cheaper, and faster products. According to research by Accenture, there was a 30 percent increase in disruption levels between 2011 and 2018, in the consumers’ goods, service, and retail sectors. Post-pandemic, this figure is bound to cross 50 percent.

Multi-focus

They need to have in-depth knowledge of the product’s life cycle so that they can immediately adapt and change courses to meet any unexpected market disruptions.

A product manager needs to be fully conversant with design, engineering, sales, customer services, marketing, budgeting, and product compliance needs. It is a collaborative and interdisciplinary process.

He collates and collaborates between various verticals and streamlines processes involved in bringing the product from the research table to the retail shelves or the end-user.

According to the Product Management Trends and Benchmark Report 2020, company profits can increase by 34 percent with a fully optimized product manager.

The Disruptive Process

Product management is an iterative process that depends on making decisions based on data analysis, feedback, and outcomes.

Product managers need to be data-driven to separate fads or transient trends from true disruptions. Data analysis helps to identify and anticipate market conditions or potential value additions for future product success.

The product management approach is about building product road maps for better strategies. It is about taking a holistic approach to a problem by making use of cross-functional teams focused on outcomes. This ensures a solution-focused approach that transforms disruptions into opportunities.

Companies with this approach can afford to build on long-term growth goals without being affected by any sudden upsets in the market.

This is because the roadmap works on building processes that can withstand sudden headwinds and ride the tailwinds in the market.

If you want to be a part of the process and meet the challenge of being a mini CEO, join our product management course.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

Filed Under: Management

8 Gifts For Your Employees To Make Them Feel Appreciated

Last Updated on April 27, 2022 By Ayesha Saeed Leave a Comment

Although you may feel like your employees work hard and are always putting in a day’s worth of effort, they might not express that same appreciation back to you. It is important to give your employees something that will make them feel appreciated. A company gift for employees can be anything from a coffee mug or sweatshirt to a gift card for a store of their choice. This will show your employees that you care about them and recognize their hard work. In this article, we will discuss 8 ways to show your team members just how much their efforts mean to you without going out of your way.

A Day at the Spa

Employees often go through tough times at work. It can be difficult to focus on work when you are feeling stressed or unhappy.

To make your employees feel appreciated, give them a day at the spa! This will allow them to relax and rejuvenate themselves.

There are many different types of spas that offer a variety of services. You can choose to go with a traditional spa, or you can choose to go with a more holistic approach.

Whatever you choose, make sure that the spa offers a variety of treatments that will make your employees feel special. They will appreciate the thoughtfulness and effort that you put into making their day special.

A Gift that Makes Them Happy

Gift that Makes Them Happy

It can be tough to find the perfect gift for your employees, but there are plenty of options available. Here are some ideas for gifts that will make your employees happy.

  • A funny mug or T-shirt: A funny mug or T-shirt is a great way to show your employees that you care. If they have a sense of humor, they will love receiving a funny mug or T-shirt as a gift.
  • A plant: A plant is a great gift for any employee. Not only does it make them happy, but it can also help to improve their indoor air quality.
  • A food truck voucher: Food truck vouchers are another great way to show your employees that you appreciate them. Food trucks offer unique and delicious dishes that your employees are sure to love.
  • A day off work: Giving your employees a day off work is a great way to show them how much you care about them. It can be difficult to find the time to give everyone an equal day off, but this is one way to show your appreciation.

Something They Can Use Everyday to Maintain Their Health

Employees are the lifeblood of any business. They are the ones who keep everything running smoothly and who make all of our hard work worthwhile.

It’s important to show your employees that you appreciate them and what they do for you. One way to do this is to give them gifts that they can use every day to maintain their health and well-being.

Some of the best gifts for employees to keep them healthy include fitness equipment, health supplements, and healthy food items.

Fitness equipment can help employees to stay healthy and fit. Health supplements can help improve their overall health and well-being, and healthy food items can provide them with the nutrients they need to stay healthy.

Whatever gift you choose, be sure to think of something that will benefit your employees and make them happy. Thank them for everything they do for you, and give them a gift that will make a lasting impression on them.

A Great Plaid Shirt For The Man in the Office

If you’re looking for a gift for your employees, why not consider giving them a great plaid shirt? A plaid shirt is a classic office wear item, and it can make your employees feel appreciated.

Choosing the right plaid shirt can be tricky. You don’t want to buy something that is too formal or too casual. Somewhere in the middle is ideal.

Another thing to think about when buying a plaid shirt for your employees is the size. You don’t want to buy something that is too small or too large. The size you choose should fit comfortably, without being too tight or too loose.

When you give your employees a plaid shirt, they will love it! They will feel stylish and stylish, and they will know that you appreciate their hard work.

Coupons for Popular Dining Places Near The Office

Giving your employees a gift is a great way to show them how much you appreciate them. There are many different types of gifts that you can give your employees, and some of the most popular gifts include coupons for popular dining places near the office.

Coupons for popular restaurants can be a great way to show your employees that you care about their well-being. They can use these coupons to enjoy a delicious meal without having to spend too much money.

Giving your employees a gift that is related to their interests is also a great way to show them how much you care about them. For example, you could give your employees tickets to a concert or a show that they are interested in.

If you are not sure what type of gift to give your employees, consider giving them a coupon for one of the popular restaurants near the office. These restaurants have excellent food and beverage options, and they will love receiving a coupon in lieu of a traditional gift.

A Fun Way To Learn About Technology and How It Helps Businesses

There are many different gifts that you can give your employees to show them how much you appreciate them. Here are six ideas that will have a big impact on their lives and work:

  1. A computer or laptop: This is a great gift for any employee who uses technology regularly in their work. It can help them to be more productive and efficient, and it can also help them to stay up to date with the latest trends in the industry.
  1. A smartphone or tablet: These devices are becoming more and more popular, and they can be a great tool for employees who need to stay connected with their workplace and with their friends and family.
  1. An iPad or similar device: These devices are perfect for entertainment purposes as well as for working on projects in the office. They can also be used for educational purposes, which is something that many employees appreciate.
  1. A nice camera: Many businesses now use photography as a way to capture memories of special events or meetings. A nice camera can make this process much easier and quicker than it would be without one.
  1. A new computer or laptop sleeve or case. This is a great gift for any employee who is starting a new job.

An Activity That Will Improve Their Mental Health and Wellness

Employees can really appreciate a gift that is designed to improve their mental health and well-being. Consider giving them an activity that they can do together as a team. This will help to build bonds and create a stronger workplace culture.

Some of the most popular activities that can be used in this way include healthy cooking classes, mindfulness meditation, and stress relief workshops. These types of gifts are sure to improve the mental health of your employees!

Gifts

Giving your employees gifts can be a great way to show their appreciation for their hard work. There are many different types of gifts that you can give your employees, and there is no wrong way to do it.

Some of the most popular gifts include gift cards, flowers, and chocolates. It is important to choose the right gift for the person, and you should also consider their likes and dislikes.

If you are not sure what to give your employees, you can always go with a gift card. This type of gift is versatile, and it can be used anywhere in the world.

Giving gifts to your employees is a great way to show them how much you appreciate them. Make sure to choose the perfect gift for them, and don’t forget to thank them for their hard work!

ayesha saeed
Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s in digital marketing since 2018. She loves reading books and spend time with her family. Reach her on Email 

Filed Under: Management

Benefits of an Analytics Platform

Last Updated on May 5, 2022 By Methew Harbor Leave a Comment

An analytics platform is a software application that enables organizations to collect, organize, analyze and report on data to help them make better business decisions. The platform allows users to track and monitor data in real-time and access past data for retrospective analysis.

Most analytics platforms use a drag-and-drop interface, making it easy for users to create custom reports and dashboards. The platform also provides users with tools to help them understand and interpret the data. These tools may include data visualization, statistical analysis, and machine learning algorithms.

Organizations typically use an analytics platform to analyze data from various sources, including customer, website, and financial data. The platform can track website traffic, understand customer behavior, identify business improvement areas, and forecast future sales. Today, we’ll examine some of the benefits of an analytics platform.

Streamlined Reporting Processes

An analytics platform can streamline the reporting processes for a business. By consolidating all of the data into one place, it becomes easier to identify trends and patterns. This can help to improve decision-making, as well as to optimize business strategies. Additionally, this streamlined reporting process can help identify areas for improvement and assess the effectiveness of marketing campaigns.

Greater Agility

A data analytics platform provides greater agility and flexibility to quickly adapt to change and take advantage of new opportunities.

With the ability to quickly access and analyze data, organizations can make better, more informed decisions, resulting in improved performance.

An analytics platform does this by enabling users to easily access data across the organization, regardless of the data’s location or format. Additionally, a data analytics platform includes features that allow users to quickly analyze and visualize data, making it easy to respond to changes in the market or customer demand and take advantage of new opportunities.

Improved Customer Experience

An analytics platform can provide a business with a competitive edge by improving the customer experience. The platform can help identify customer needs and preferences and improve the effectiveness of marketing and sales campaigns. It can also help identify opportunities for product improvement and new product development. Additionally, the platform can help businesses optimize their website and online presence to improve customer engagement and loyalty.

Easier Integration with Other Systems

An analytics platform can provide many benefits for a company. One of the most important benefits is making it easier for a company to integrate with other systems. An analytics platform can provide a common interface for all of a company’s data, easing the integration process. With an integrated data analytics platform, a company can also better understand how its different systems work together. This can help a company better optimize its systems and troubleshoot any problems that may arise.

Improved Efficiency and Accuracy

A data analytics platform can improve efficiency and accuracy while reducing the time to insights. The platform can aggregate data from various data sources and allow for data-driven decision-making. It also helps to improve collaboration between teams and foster a data-driven culture. The platform achieves this by providing a self-service data-discovery environment, data catalog, data preparation, and data management capabilities.

The data discovery environment allows users to explore and analyze data without help from IT. They can easily identify and connect to the data they need, regardless of where it resides. The data catalog makes it easy to find and understand the data collected. The data preparation and data management capabilities make it easy to clean and prepare data for analysis while managing and governing data as it changes.

Implementing a Data Analytics Platform

Together, these benefits help users quickly find and use the data they need to make better decisions while making it easier for teams to work together and share insights. As you can see, a data analytics platform is a vital tool for any organization that wants to make data-driven decisions. So, if you want to take advantage of these numerous benefits, consider implementing this platform in your organization.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Business, Management, Technology

4 Ways To Improve Supply Chain Efficiency

Last Updated on April 21, 2022 By Tristan D. Porter Leave a Comment

The supply chain can be considered the heart of a business. The raw materials used for production are obtained through the supply chain. Deliveries of finished products to customers and end-users also go through the supply chain. The supply chain is also that part of the business in which suppliers and providers transact with the internal teams and processes, and can thus have an impact on its efficiency and productivity. It’s the process that moves business capital from procurement, then production, sales, and then on to delivery and revenue generation.

There are quite a number of opportunities to further improve the efficiency of supply chain networks in various types of business operations. To pinpoint those areas of improvement, business owners should take a close look at their data reports to identify the gaps in their processes. In financial management, for instance, you can pay less in fees as a global business by using some of the alternative points of sale (POS) software applications and payment facilities currently offered in the market.

Here are four ways in which you can improve your company’s supply chain efficiency.

1. Enhance Visibility And Visualization

One of the most important things to consider when improving your supply chain’s efficiency is to increase the visibility and visualization of your supply chain. Creating a visual representation of your supply chain logistics and processes will allow your teams to visualize exactly where your products are headed. This would also help them identify areas that might be running into some issues or in need of fine-tuning.

For example, a beverage company can use visualization software to track the status and location of raw materials which are headed for delivery to the production plant. In the production process itself, the team can monitor the plant’s output to see if regular quotas are being met.

When the products are finished, the company can use visualization to monitor the fulfillment of orders for later marketing purposes. They can also use visualization software to track the location of delivery trucks and vans and optimize delivery by coming up with better truck fleet dispatching and routing workflows. They can even find out if there would be ways to make use of the backload by instructing trucks to pick up raw materials or other supply items before returning to the warehouse. This will result in further improvement of the cost and time it takes to transport raw materials and deliver finished products.

2. Automate Your Workflow Tasks

Another way to improve your supply chain efficiency is to automate repetitive tasks and duplication processes. Automation also helps reduce the number of workers needed for the business to operate and work hours for orders processing.

For example, in a knowledge production firm, some of the work done by editors can be automated with the use of digital tools designed to detect grammar and spelling errors. With further advancements, AI-based applications could be used as substitutes for human editors handling more complex tasks. This would enable companies to reduce idle time, achieve greater efficiency, and save on operational expenses.

warehouse

The use of automation would also help attain uniform standards in workflows and speed of processes. For example, the invoice, delivery labels, and shipment bar codes of an online store are automatically printed once a purchase is made through an eCommerce platform. An application linked to the platform then sends a message to the fulfillment center to schedule the package for pick-up by the forwarding team. The only task that would have to be handled manually is putting the order label on the package.

3. Automate Your Warehouse Operations

Warehouse handling and operations could greatly benefit from automation, as software and robotic equipment can be used to handle most inventory-related tasks. For instance, you can use either bar codes or radio frequency identification (RFID) to identify, mark, and locate a specific box or product. If a product has to be retrieved, robotic mobile pallets and retrievers could go to the shelf where the item is located. It would then reach for the item and place it in its cargo hold.

This kind of warehouse management technology is already being used in the warehouses owned by some of the largest eCommerce platforms. In fact, more advanced systems can even place an order for replacement stock as soon as the inventory stock is retrieved by robots.

4. Use Analytics To Continuously Improve

Another move that would immensely improve your supply chain efficiency would be applying analytics in studying your supply chain. Analytics will help you come up with an objective evaluation of how efficient your business operations are, making it easier to identify the gaps and bottlenecks in your supply chain and logistics processes.

In a production setting, management can use analytics to identify which specific tasks are taking up too much time. They can use analytics reports to evaluate whether there are roles and functions which are just duplicating the output of other teams. They can use it to assess whether some layers in the production process do not directly create added value and do not contribute to the bottom line. They can also use data on the idle time of their workers to assess whether there are too many people in one department and consider cost-cutting measures.

You’d also be able to come up with strategies on how to continuously improve based on the findings in your analytics reports. The advantage of analytics is that it uses reported data instead of forecasted or predicted data. It’s not based on the educated estimates of production analysts even though such estimates may be based on established engineering formulas. Going back to the beverage production plant example, analytics can measure the time it took for production to finish from the time it received the orders.

Conclusion

There are a few key opportunities for companies to further improve the efficiency of their supply chain. If implemented properly, these supply chain enhancements not only help speed up production and reduce operational expenses but also improve customer/client relationships by being able to consistently deliver high-quality products and services.

d porter
Tristan D. Porter

I am Tristan who loves to ride and spend time with my jenny (horse) and my love Mark. After completing my graduation, I have been working as an accountant in a private firm in Cologne.

Filed Under: Management

How to Mitigate Reputational Risk

Last Updated on April 20, 2022 By Methew Harbor Leave a Comment

As the name suggests, reputational risk is a major risk to the reputation of a company. When working in a community, you have to be immensely careful about your company’s reputation. Any harm to the reputation acts as a trust breach, and you lose customers. If you do not identify reputational risks and manage them per need, it may cause reputational damage. While you can try to recover the damaged reputation, it comes at a cost.

As it is said, “Precaution is better than cure.”

How to Mitigate Reputational Risk

Let’s look at all the possible strategies that you may apply to mitigate reputational risk.

Quality Check

One of the major reputational risk causes is quality downfalls. When the quality of your product is not up to the mark according to the customer’s expectations, it may cause damage to your reputation. The consumer may ignore the mishap a few times. Yet, you might lose a loyal customer base if it is not regulated properly. It also reduces the possibility of engaging more customers with the brand when another company makes a better place in the business.

Happy Employees

Another important internal aspect of mitigating reputational risk is happy employees. A company is known for how it treats its employees. And with people standing up for the rights of employees more than ever before, it isn’t easy to keep your name high if you do not treat your employees right. An employee is the first-hand reviewer of the company. If you wish to maintain a reputation and decrease the risk, do not forget to keep your employees happy.

A happy employee is the best testimonial for your business!

Improve Customer Service

According to Nextiva, around 56% of people globally do not buy from a brand because of a previous poor customer service experience.

Good customer service can hide many of your company’s flaws as people want their complaints to be heard and validated. Similarly, bad customer service can seriously harm your business. The best way to avoid this is to recruit people who are the best for your company. If you are an apparel brand, it would not be the best idea to have customer service representatives who have only worked for software. Your representatives must not only have customer service experience but also of the particular niche you work in. One simple way is to offer a short training session before the employees begin their job to give them enough knowledge about your brand. It helps avoid blunders that may happen otherwise.

Data Protection

IoT security

Reputational risk does not only arise from internal factors. But also external types of reputational risk like a breach of privacy can be harmful. Sometimes, the competitors try to steal your data by breaching your privacy. Leak data can result in serious damage to your business in terms of reputation and finances. Thus, it is important to keep your data protected. A few steps that you may take to prevent reputational damage include:

  • Allowing data access to only authorized and highly trusted people
  • Appointing cyber experts to encrypt your data and save it from being stolen
  • Using tools that can inform you of any suspicious activity to save your business from data breach harm
  • Lastly, you must have a team of professionals ready to fight such situations and recover data
  • While it is essential to protect your data and save it from theft, it is also important to have a Plan B if anything such happens.

Observe Social Media

In an era where over 3.5 billion people use social media globally, news spreads like wildfire.

Whether a brand makes a huge hit or a mistake, everyone talks about it in a space accessible to hundreds and thousands of people at once. Keenly observing social media is a critical part of mitigating reputational risk. If the first negative review is not managed properly, you might find many more floating on social media platforms in just a few days. A business must have a social media or community manager who makes sure that everything that goes on social media about your brand is “good” from happy customers. You must try to keep your brand name dissociated from words like “poor” and “bad.”

The Bottom Line

Reputational risks can be significantly harmful if not managed in time. You can prevent reputational damage by identifying reputational risks, keeping a keen eye on social media, improving customer service, and ensuring the quality of your products, among other measures. Now that you know how to mitigate reputational risk, utilize the given strategies to reduce the risk as much as possible and improve your brand’s reputation.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Business, Management

How to Identify Reputational Risks

Last Updated on April 20, 2022 By Methew Harbor Leave a Comment

Reputational risks may lead to reputational damage if you ignore the consequences of not considering reputational risks in time. However, to avoid or manage reputational risks, it is important to identify and measure them. Reputational risks and damage are specific to each business, yet you may find the primary ones associated with your brand through some means mentioned below. Read this article till the end to see how to identify reputational risks and measure them to prevent serious damage.

Social Media

You may think that social media is one of the largest supporting reasons for reputational damage; how can it help us identify reputational risks?

Most customers take to social media to express their frustration and disappointment about a brand. Usually, it starts from a post on their profile where they express their resentment about a particular product or service. This first review can help save your business from long-term damage if you nip it in the bud. It is smart to have a community manager for the company who can keep an eye on what people think of the brand. You must try to keep words like “bad,” “poor,” and “uncooperative” away from your business on social media.

Study the Products or Service

Sometimes, you see multiple bad reviews about a company from multiple sources regarding the same product. As a business, you must find out the root cause of the issue and fix it as soon as possible. There may be a quality problem with the product mistakenly ignored by the Quality Control during manufacturing. You may also stop the production of that particular product for a while till the issue is resolved.

Consider Stakeholder Sentiments

Considering the stakeholder’s sentiments is essential for identifying and measuring reputational risks. Different stakeholders have a particular impact on your company’s reputation. For example, issues with the customers are considered a moderate risk. But when media is involved, it becomes a serious reputational risk.

Understanding the nature of the risk associated with the stakeholders and their perception of the company can help identify and minimize the risk.

Track Negative Events

Sometimes, as business owners, we understand the negative events of a potential reputational risk but let go of them. This may be fine sometimes if the benefit ratio is high. However, if the event can be seriously negative for your brand’s reputation, it is better to avoid it. Prevent further negative events by tracking and studying previous events that impact your business negatively.

Frequently Asked Questions

What happens if you do not identify and consider reputational risks?

If you do not identify the risks in time, you may have to face the consequences of reputational risks like business loss, tarnished image, failure to meet business objectives, loss in market share, etc.

What is the hidden cost of reputational damage?

The Hidden Cost of Reputation Risk by Oliver Wyman offers a new methodology to help identify and quantify reputational risks. It is based on four steps; defining the reputational risk, analyzing the available data, quantifying the reputational risk, and linking the risk to the reputational risk management framework.

What are the types of reputational risk?

Reputational risks are of various types depending on the cause and their impact. Common reputational risks include the vendor’s misconduct, low-quality products or services, failure to keep the stakeholders satisfied, and bad online reviews.

Conclusion

Identifying the reputational risks can save you from reputational damage caused by any likely factors. It helps you measure and find a better way to manage the risks. You can identify the reputational risks through social media, studying your products, understanding the stakeholders’ sentiments, and tracking negative events.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

In-House vs Marketing Agencies: Which is better for your Business?

Last Updated on April 18, 2022 By Ayesha Saeed 1 Comment

Choosing between an in-house team and marketing agencies is a critical decision to make for any business owner. Since branding and marketing play crucial roles in growing your business, you need to choose wisely. This is especially true if you’re just getting started in the industry.

The right decision may depend on your company’s ultimate goals. For example, if you want to improve your return on investment (ROI), you need the right marketing team to solve this problem. Should you establish an in-house marketing team or hire an agency? Read on:

What to know about having an In-House Team

Prevent Discrimination In The Workplace

An in-house team comprises individuals who work exclusively for your business. While your business can hire one person to carry out all marketing duties, it’s more effective if you build a team. This way, you’ll have someone responsible for content writing, social media marketing, email marketing, and search engine optimization (SEO).

If you prefer to opt for an in-house team instead of a marketing agency, here are the pros and cons you should know:

  • You’ll have control over Everything

You’ll have full control over your marketing team and how they implement and build your marketing plan by having in-house marketing. If you have clear ideas of how you want to use digital marketing to grow your business, creating an in-house team to deliver can be the best solution.

If you’re unsure where to start with your marketing, hiring a marketing agency can make a difference. With its expertise and experience, its marketing experts can make a killer marketing plan suited for your business.

  • Your In-House team knows your company’s Vision and Experts in your Brand

Your in-house team will breathe, eat, and live your company’s vision. They’ll be your brand experts, which means there’s no learning curve in speaking on behalf of your company on press or social media sites.

Your in-house team members are also aware of your business vision and what they should do to execute it. In short, your communication will stay consistent, and no major adjustments in tone will be made, which is a plus when growing your business.

  • It takes time to build an In-House Team

It’s not easy to build your own in-house team. Aside from finding the best potential candidates for your marketing team, you have to prepare the necessary tools of the trade so your employees can do their duties well. It means you need to spend a lot of time onboarding employees and shop around for design or data analytics tools for your marketing needs.

What to know about Marketing Agencies

Compared to an in-house team, working with marketing agencies is like outsourcing your marketing needs. In short, instead of performing the work in-house, you work with an agency that typically comprises many professionals who specialize in various aspects of marketing to deal with such duties. Click here for marketing strategies with Lisnic and learn about the top marketing agencies.

Marketing agencies work to be an extension of any company, learning brand identity, business goals, purpose statements, and core values. If you don’t know whether or not a marketing agency is for your business, here are its pros and cons:

  • Get access to Experienced Professionals

While an in-house team is hired with a particular experience level, most business owners hope that their team members develop and grow with the company and attain new skills to make them well-rounded professionals. On the other hand, marketing agency professionals are already seasoned experts. Several agencies have professionals who specialize in a certain area of marketing.

The high level of quality and experience of marketing agencies are a major benefit for many businesses. No one will have to develop or grow into a role because such professionals have the expertise and knowledge to make things work. In a specific sense, you don’t have to worry about your marketing, allowing you and your employees to focus on other business tasks.

  • Perfect for Campaign-Specific Marketing

Working with a marketing agency can be advantageous for offloading various marketing tasks. It’s also beneficial when launching any kind of marketing campaign. A marketing agency knows what’s needed to launch and implement successful campaigns by having skilled experts on hand.

  • You’ll have less control of your Content

Once you decide to work with a marketing agency, you might not have the right to access your creative content. Since marketing agencies will handle your projects from start to finish, it may cut down on your input and connection to the end product. So, if you want to have full control of your marketing strategies, you might want to build a marketing team for your company.

  • Marketing Agencies take time to be familiar with your Brand

Many marketing agencies aren’t aware of your brand, target audience, and industry. Therefore, it might take longer for them to be familiar with your business goals and brand. This may result in more meetings to get more information regarding your brand. Before you decide to hire a marketing agency, you have to ensure that they’re prepared to fully understand your brand.

Which is right for your Business?

There’s no accurate answer to this question as it depends on how much you’re willing to spare for your marketing. As a business owner, you need to think of what you want to achieve with your marketing and how far you’re willing to go.

If you’re a small business owner, it’s wise to establish an in-house team before hiring a marketing agency. It’ll help you be open to more marketing ideas, benefiting your business growth. However, if you’re running a big company, it may come in handy to hire a marketing agency to help your in-house marketing team and get advanced marketing solutions.

Conclusion

Both in-house and marketing agencies have pros and cons. Depending on your marketing spend and needs, make sure to choose the one that will help your business grow and reach your goals in no time. If possible, before you decide, analyze your budget and business needs, and monitor the performance of your in-house team or a marketing agency. This way, you’ll know which is worth it for your investment allocation.

ayesha saeed
Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s in digital marketing since 2018. She loves reading books and spend time with her family. Reach her on Email 

Filed Under: Management, Marketing & Advertising

Causes of Reputational Risk

Last Updated on April 20, 2022 By Methew Harbor Leave a Comment

Reputational risks are among the most crucial types of risks for a business. This is why risk management has considerable importance in businesses. They can cause significant harm to your company if not measured and managed. However, the good part is that you can mitigate the risks by making the right business choices. The causes also contribute to the identification based on the types of reputational risks to measure and prevent them. 

What are the Causes of Reputational Risk?

The reputational risk may arise from multiple causes, primary of which are social media and poor customer service. Let’s have a look at all of them briefly.

Social Media Presence

The foremost reputational risk arises from the social media presence of the customers. Social media provides a free space for people to share their experiences and sentiments. Many times, you may not realize, that a small mistake can lead to serious consequences. Nowadays, people take to social media to address concerns and reservations about any business; it is worse when your customer service is bad.

When the customers do not get satisfaction from the brand, they vent out on social media for someone to facilitate them. It not only associates negativity with your name but also diminishes the trust of the existing customer base.

Poor Customer Service

In an era when the customer is called the God of the business, if you do not focus on your customer service, you’re not doing it right. Customer service representatives are the face of a business and they must be equipped with the knowledge and skills to manage the customer’s issues gracefully. Surveys show that more than half of customers who face an issue do not do business with the brand again when their problems are not resolved. 

Imagine losing half of the customer base and the reputation built over years; serious damage it is!

Insufficient Cyber Security

cyber attacks

Data breaches are a major cause of reputational risk that is not so common, yet may create huge problems for you. A company strives to work better according to the data it collects from its customers through software and surveys. This data along with the personal credentials of the business can be of massive harm if lost. Many times you may experience a data breach that could be a risk to the company. However, it is essential to have a full-proof cyber security plan to mitigate reputational risks.

Leadership Issues

Another reputation risk cause that does not appear on the surface but causes deep-rooted problems are leadership problems within the company. Sometimes businesses fail to choose leaders that add value to their name, leading to reputational damage.

Studies show that the CEO’s reputation accounts for 45% of the market value of the business.

So, if you want to save your business from damage to market value and reputation, it is important to choose people who add value. Avoid people in the top managerial positions with controversial histories.

Unclear Business Objectives

The business plan of a company contributes majorly to its success and reputation in the market. When everyone in the company works together to achieve business goals, you are less likely to suffer from reputational risks. However, if your business objectives are unclear and the employees do not have a mutual goal to work towards, it may cause reputational harm. Unclear Business risks do not offer a proper direction to the people, adding to reputational risk. 

Neglecting Employees

People who work with you in taking your business to the top expect you to take care of them as well. Many companies globally give immense importance to their employees by remembering and celebrating their professional and personal achievements. On the other hand, some corporations want to get the best out of their employees without giving anything apart from the minimum salary.

Remember that you get what you give. If you are not interested in keeping your employees happy, it will cause a hike in turnover and damage your reputation. Happy employees make a huge difference from unsatisfied ones.

Not Meeting Expectations

All of the above-mentioned causes collectively attribute to the inability to meet the customer’s and stakeholder’s expectations. Whether your products are low quality, the cybersecurity is insufficient or your employees are neglected, it all exhibits that you are meeting expectations. If you are not able to meet the expectations of people associated with your business in one way or the other, it will cause you to lose your reputation in the market.

The Bottom Line

Reputational risk can result in major reputational damage and financial loss if you do not realize the importance to mitigate it in time. You must identify risks and understand the causes of reputational risk and make your best effort to reduce the risk.

Neglecting the causes can exhibit consequences of not considering reputational risks in the long term. While you may think that managing these risks will take time and money, it is a must-knowing that covering reputational damages costs between $8,000 and $200,000. So, the time and effort to monitor and restrict the causes is essential to keep your business going high.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Business, Management

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