Canning supplies has been a hot topic recently in Australia, with people wondering why the supply chains of beer, spirits and tobacco are so often not properly audited.
The Government has promised to overhaul the supply-side of the economy and the supply of supplies.
It’s a subject that has dominated discussions in recent years.
What is supply side?
Supply side economics is a branch of economics that looks at how businesses are able to produce goods and services in a manner that maximises the value of their assets and minimises their costs.
In other words, it looks at what the supply and demand of a given good and service will be.
Suppliers can use this to create a better supply chain, with fewer people needing to move around and having better control over the processes they use.
This could be an important factor in reducing costs and increasing returns.
Can you cut costs by doing things differently?
This is a particularly pertinent question when dealing with the supply to market supply relationship.
The supply to demand relationship between a company and its customers is the principle mechanism for ensuring that the value is maximised for each customer.
For example, if you can produce a product, the value you get from it will be higher than if you had to buy it from a competing firm.
However, if the price of the product is cheaper, that means that the customer is getting less value for their money.
Similarly, if a product is more expensive than other goods, then the customer will get less value from it.
With supply side accounting, the company can calculate the cost of producing the goods and the value they will get from them.
How can you cut down on the cost and return of production?
To reduce costs and increase returns, it is necessary to look at the whole supply chain.
There are many different ways in which the supply is broken down.
For example, some companies have supply chains which include many suppliers and a number of goods.
Another way is by using logistics systems to move goods from one location to another.
Other methods include using automated systems and other processes.
One way of thinking about supply is by comparing the cost per unit of a good to the price that would be earned if it were produced by an independent manufacturer.
For instance, if one could produce a kilogram of fruit, that is cheaper than if it was produced by a small company.
Finally, there is supply by distribution which involves the supply being spread across a number that is relatively small.
Are there other ways to cut costs and improve returns?
It is important to note that all of these methods have their own benefits.
It can be more efficient to reduce costs than it is to increase returns.
If one wants to reduce the cost or increase returns of an activity, it will need to do more than just reduce the costs of that activity.
It will need also to be more effective in reducing the costs than the benefits it generates.
But the best way to do that is to find the cheapest way to produce something, and then use that as a starting point for creating your own supply chain management strategy.
References: AAP, ‘Canning supplies: Canning can now be cheaper, cheaper than ever’, News.au, 7 July 2018, AAP, The Australian Manufacturing Council, ‘More Australian Canning, More Cost, More Return: The Australian Industry Code’, 15 December 2018, http://www2.aap.gov.au/Documents/CanningCode15Dec20.pdf AAMC, ‘Australian Industry Code: An Overview of the Australian Manufacturing Code’, 11 December 2018.
Australian Government, The Supply Chain: How businesses can reduce their costs and maximise their returns, Government of Australia, Canberra, 12 March 2019,