Many decision makers underrate the importance of an organization's supply chain and the impact that it has on a business.
By reorganizing a company's supply chain, an organization may be able to realize higher profit margins on their sales as a result of trimming their costs associated with making the supply chain process more efficient.
Conversely, by lowering their costs a company can lower the price they charge customers which can make it increasingly more difficult for competitors to match their prices, which can lead to an expanded market share and revenues for the company.
This can be quite a boom to a firm that has significant supply chain processes in place and management should pay increasing focus to the supply chain when directing their business.
Not only is this concept true for private and public businesses, it is also true for the military.
By trimming costs and using effects based operations (EBO) in their operations, they are able to realize the benefits of both civilian advances in recent years, as well as military advances as well.
The military uses effects based operations as rely on the combination of both the military as well as civilian lifestyles to appropriately run their operations.
This can provide quite the benefit to trimming the costs of running the military, but can also lead to improperly implemented military concepts.
As such, a fine line will have to be walked by military leaders to ensure that EBO is effectively implemented into military operations.
An example of the potential pitfalls of EBO is the just-in-time (JIT) inventory system.
Many businesses use JIT in their operations as it lowers the costs of holding inventory at a warehouse, thereby lowering the cost of running their business.
In the military, higher amounts of inventory can lead to reserves that can be utilized in a time of need for the army.
This can provide many benefits in the military but not in a civilian situation, when cost cutting and efficiency are more important than redundancy and safety.
When implementing EBO procedures, it is therefore important to review all processes to determine what the most beneficial for the military is, considering their unique requirements, rather than blindly implementing all of the best processes identified by private businesses.
This should lead to the best practices relating to EBO being implemented in a cost-effective and efficient manner, with considerations of the needs of the military.
By reorganizing a company's supply chain, an organization may be able to realize higher profit margins on their sales as a result of trimming their costs associated with making the supply chain process more efficient.
Conversely, by lowering their costs a company can lower the price they charge customers which can make it increasingly more difficult for competitors to match their prices, which can lead to an expanded market share and revenues for the company.
This can be quite a boom to a firm that has significant supply chain processes in place and management should pay increasing focus to the supply chain when directing their business.
Not only is this concept true for private and public businesses, it is also true for the military.
By trimming costs and using effects based operations (EBO) in their operations, they are able to realize the benefits of both civilian advances in recent years, as well as military advances as well.
The military uses effects based operations as rely on the combination of both the military as well as civilian lifestyles to appropriately run their operations.
This can provide quite the benefit to trimming the costs of running the military, but can also lead to improperly implemented military concepts.
As such, a fine line will have to be walked by military leaders to ensure that EBO is effectively implemented into military operations.
An example of the potential pitfalls of EBO is the just-in-time (JIT) inventory system.
Many businesses use JIT in their operations as it lowers the costs of holding inventory at a warehouse, thereby lowering the cost of running their business.
In the military, higher amounts of inventory can lead to reserves that can be utilized in a time of need for the army.
This can provide many benefits in the military but not in a civilian situation, when cost cutting and efficiency are more important than redundancy and safety.
When implementing EBO procedures, it is therefore important to review all processes to determine what the most beneficial for the military is, considering their unique requirements, rather than blindly implementing all of the best processes identified by private businesses.
This should lead to the best practices relating to EBO being implemented in a cost-effective and efficient manner, with considerations of the needs of the military.
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