Business Process and Systems - Essay Example

In operation management, the management of the entire process relating to the production and marketing of the products or services are involved. The distribution management consists of the organising and control of the basic functions of product distribution in the market. In the old system adopted by the company, each crop is decided by the tenant and the business receives rent and a percentage of the profit. Certified organic products would help to gain the market with greater profit. Expansion of the business requires greater access to the market through considerable changes in the organisation structure.

It is better to modify the production operation by giving clear cut planning relating to each of the organic farm products that has to be produced by each of the tenant. It will be more effective in production as the targeted quantity of each of the product type can be ensured. Inventory management: Too much inventory and lack of enough demand will generate great financial loss to the business. Maximising cash flows should be the aim of the business. To gain this, the inventory management system should be strengthened by shortening the forecasting time and analysis of the sales and demand data.

Improved communication process is another essential factor for the efficient distribution process. Best practises of inventory management, with advanced technology tools, are helpful for improving the inventory management. Online distribution management system can be applied for improving the efficiency. It will facilitate the integration of factors such as customers, stocks, distribution and services in cost effective manner. Distribution chain starting from the vendors to the customers’ electronic distribution system can be applied.

Supply chain management is greatly related to the co-ordination of different functions in the business such as procurement of materials from the farmers, co-ordination between different players in the