Describe key factors that should govern the ordering and manufacturing process.

EXAMPLE SAMPLE BELOW:

Hello All,

Every company is different when it comes to how they govern the ordering and manufacturing process. Although there are different process types, it really comes down to what works best for your company. You can follow Just-in-Time (JIT) ordering, make to stock, make to order, engineer to order and others. It ultimately comes down to making sure you can produce your product in time to meet your customers demand.

With the company I currently work for, we order our materials to meet our product demands set by our customers forecast. We like to be able to keep a 6-week finished good stock on hand to meet fluctuating forecasts. Although it is not always easy, we are constantly having to change our production plans. We also must manufacture in cycles, from white to milk to dark chocolate. However, there are always forecasting or demand issues that can put constraints on your product planning.

For example, we make seasonal chocolate that is only produced by our facility in the US and shipped around the world. To give you a short background on selling our product, we can sell direct to store in the US. However, internationally it is only sold to our sister companies to be sold to stores in their countries. This specific chocolate is only produced twice a year to meet the demands from around the world for Christmas. We start our first forecast in February. During this time, each other country and our domestic sales team place their yearly buy. This gives our teams the time to make the necessary raw material and packaging purchases for production in June and July to ship in August.

Thank you,