Made In BC

Managing Supply Chains

12th October, 2009 - Posted by admin -

Companies are required to comply with recent government regulations that could cause financial difficulties if they aren’t very careful with the supply side of their balance sheets. On the more obvious, tangible side of the spectrum, producing in an on-demand economy means that their entire manufacturing production operations could be abruptly halted if even minor parts aren’t delivered in time. And less tangible, but potentially even more financially devastating, is the Sarbanes-Oxley legislation, which requires that a business include all future planned transactions and future obligations from current agreements on its balance sheets.

To take one example of risks on the on-demand side, imagine a building with several machines running virtually 24/7. Yet if the company that supplies car parts on demand (like brake pad parts) has delays of its own, then production in that building could go quiet. This is a risk that must be taken into account if the company is dependent on this sort of supply chain. The same risk attends all industries including the health care industry.

But there are certain off-balance sheet liabilities, another aspect of the supply chain that is more “potential” than tangible. Sarbanes-Oxley dictates that even the costs of your agreements, commitments, guarantees and other planned future transactions need to be taken into account, so that you have all aspects covered. What is required then, to keep track of this net liability and ensure that the company’s actual financial health can be accurately assessed, is a liability professional who specializes in this type of accounting. A whole industry of such specialists has sprung up in recent years, in response to Sarbanes-Oxley and other such legislation.

You can deal with intangible liabilities like future timed commitments and obligations from agreements by acquiring risk management software programs that calculate and report them. The software can also enable you to keep track of changes in supply and demand, to keep inventory costs down while still allowing for possible delivery delays. In order to comply with government regulations but still stay solvent and profitable, you need to keep on top of your production and manufacturing costs, both tangible and intangible.

If it is insurance that you need, Rene Lacape is the person to look for. He has been in this field for many years and is still in counting. He has dealt with many clients and is proud to say that all of them are very satisfied. If you need him, check his website so you can call him now.