Negative Qualities Of The Company

919 WordsAug 16, 20154 Pages
Negative Qualities of the Company Although I enjoyed my time with Classic City Cotton and was exposed to many positive methods and characteristics, I did see some things that I would change or pursue in a different manner. I understand that as a small company, they do not have the amount of capital readily available to implement complex techniques, however, there are some things I find important that Classic City Cotton seemed to lack. Their management of inventory did not meet my standards and they seemed to have limited supply chain management. Prior to receiving a purchase order, the company had already bought the materials to produce seven finalized pieces of each style offered. Acquiring that much inventory prior to having a buyer is a bold strategy and one that limits your free cash flow and bank account holdings; rather than having more money in the bank, ready to spend or earning interest, they had seven pieces of product. If I were an executive of a company of this size, struggling for capital and free cash, I would implement an inventory system that would allow me to fulfill orders as they were received. Although this method would cost more per order and drive margins down per unit, it would alternatively allow the company to have more cash available, earn interest, and earn a higher credit score because bills could easily be paid. This would be an easy solution to the problem I saw, and would not have much down side, especially during the growing period for the
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