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Growth in Manufacturing Business with Better Management Systems

As per the IBEF, the manufacturing sector of India is experiencing a steady increase in funding received through domestic and foreign investments.

Companies in this sector are benefiting largely from substantial demographic dividends along with increased workforce for the last decade.

The Fixed Capital Formation indicates that the annual growth rate of overall investments in fixed assets was 10.44% between the financial years of 2016 and 2018.

Such improvement in the manufacturing sector of India is primarily due to the various management concepts and innovations adopted by businesses across our country. These management techniques primarily comprise of the following topics – supply chain management, value chain analysis and inventory management.

Before you get to understand supply chain management, you are required to form a basic idea of what supply chain is.

In order to optimise the manufacturing process, every business must adopt an efficient supply chain management system which will ensure substantial growth in revenue.

Manufacturing businesses can also conduct value chain analysis to improve their cash flow. This type of management system can be divided into two main components which are primary activities and support activities.

Manufacturing units should also run an efficient inventory management system to make sure there is no loss of funds due to an inept storage control.

Manufacturing units can opt for a business loan to incorporate such management methods and thereby improve their overall cash flow.

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