Is it important for a CPSM to know the Economic Weather of a Business?

Let’s not beat around the bush, the answer is definitely yes! CPSM is considered good in this field. They can estimate variables at some specified dates; this can be based on statistics, previous sales records or operation and data, whichever the field may be, of course Risk and uncertainty are given the first consideration on this. To achieve this, all data must be updated to be able to make it a basis for forecasting and prediction of the upcoming sales.

CPSM Economic weather

You would be wondering if a supply manager can cope all of the responsibility including forecasting. They should do so, because their task have a remarkable impact on the success in the business. They must be engaged in every division or facets of the business. They are considered the link to all division of the business. Their task aids the business, control expenses and at the same time maximize return of investment.

Now, if a manager is not smart enough to control the flow of procuring materials without considering the law of demand and supply or even forecasting sales within the very slow paced month, then there is a chain reaction specifically in the financial aspect of the company.   Let’s take into consideration months that are slow on sales, in this period some companies used subcontractors to make their product in order to lessen overhead expenses such as electricity,  and  minimizing hiring workers who must be given adequate benefits.  It would be very heavy on their part to mass produce on lean months   wherein both capital and profits stagnate for quite a time due to less demand. Forecasting if done correctly can spare your business to downfall since this involves analyzing information about the business, economy and current trends. Forecasting motivates every sector of the business to be ardent and this may motivate them to be very vigilant and careful with business dealings.

There are lots of reasons why a CPSM must know the economic weather of the business,
*A CPSM can determine the cost and unit of procured materials,
*They know when is the best time to launch or introduce a product to the market.
*When is the right time to mass produce and to control?
* How should overhead cost be managed?

It is impossible for a business just to go on without testing the waters. A CPSM role in knowing the economic weather is a must since this will determine the standing of the business.
If you are a CPSM of a company and never have done forecasting, it’s not yet late, begin now and see how business is going when economic weather is observed by you. Remember, forecasting is a must, an important procedure in a business.

Just like a pilot, a CPSM must be well aware of the weather before the flight, check whether the supplies are enough and must secure the safety of his crew before takeoff. Always have adequate and exact information before making any moves.

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