Stocks:

Stocks are the goods obtainable to the organization in any form and at any phase. Stocks contain raw materials, work-in-progress, and finished goods. 

Demand and supply play a pivotal role in the maintenance of the level of stocks in an organization.

Cost is one of the major concerns for an organization when ordering stock. Organizations need to determine the requirement of the stocks. 

The cost of the stock is associated with the order the manager placed for goods.

Stock management helps the organization investigate and meet the stock cost and requirements.

Stocks management provides an exact picture of the requirement of stocks in the organization at the given time and how much should be the re-order period.

In the same organization, factories need to maintain the stocks of raw materials while the showroom needs to keep the inventory of finished goods produced by the factory.

Necessary Knowledge:

Knowledge is one of the crucial aspects of an organization. With the proper flow of information, organizations can predict the quality to produce, and where it is needed. It increases the significance and responsiveness of the supply chain.

Facilities Available:

Facilities are the locations within the organization where the raw material and finished goods are stored. Work-in-progress materials are produced to have a final product. More Facilities close to the customers can increase the efficiency of the supply chain, but the cost of maintenance of so many facilities is very high.

 Visibility of the business is not only good for the sale of your product, but it is also so helpful in creating a relationship with their customer.

The location of a business depends upon various factors like cost, availability, and accessibility by the customers.

Some factors play a significant role in the decision of the location for the business.

Customer satisfaction is one of the primary goals of an organization.

Organizations hold inventory to fulfill the need of the customer.

If the production is stopped for a shorter period, companies can satisfy the customer’s needs.

Organizations Also take care of the product if maintenance is needed to help the customer.

Fewer warehouses can reduce the cost but adversely affects the responsiveness.

Examine

The business needs to know the ins and outs of its operations. One of the best examples to read the intent of the market is the Analysis of the competition. How are they making their product stand apart from the competition?

Analysis of the market trends could be helpful to understand the sentiments? 

If the business is of selling electronics, the organization needs to know about the latest trend in the industry. What is the latest technology in use in the market? What kind of types of equipment is best suited for your type of product.

Conduct a questionnaire or have a one-on-one interaction with the customers about the feedback or suggestions they want to convey to the business? What do they like the most?. These discussions will not solely give you a comprehensive familiarity of the customer’s experience with the product, and will also be helpful in the retention.

Pricing

Pricing depends on many factors, one of them being storage and transportation cost. The increased cost of the product makes the customers hesitant to buy the same product at an extra cost.

To reduce these increased costs, companies have to start compromising either the features or the build quality. 

Pricing also depends upon the level of competition. To save the market share, companies have to price their product similar to their competitor.

Selling a product is something for which companies are taking such risks. Selling the product can be different for different regions. In some areas, door-to-door selling is the best option. The sale of the product in a showroom seems to be the perfect way of showcasing the product to the customer.

With the emergence of e-commerce, people are moving towards buying products online. Online became a global marketplace, where anyone can buy anything from anywhere in the world.

Amazon is one such example of online shopping.

A distribution channel is also crucial for an organization. An organization should look for a robust distribution channel.

Opening another manufacturing unit is a viable option when the demand for the product is very high. It also helps to reduce some costs for the company.