Methods to managing supply

• Methods to increasing supply

  1. Hire temporary employees on short-term contracts

  2. Outsourcing

  3. Purchase to order (PTO)
• Increasing demand


  Requires managing supply to meet that demand
• Loss of sales


  If supply doesn't meet demand, sales might go to rivals
• Inability to meet demand


  Might lead to reputational issues for the business
• Hiring temporary employees on short-term contracts

  • Efficiently meeting demand
  • Recruitment costs associated
• Outsourcing


  • Contracting a business process out to an external provider to meet demand in a cost-efficient manner
• Purchase to order (PTO)


  • Production starts only when the order has been received from the customer
  • Helps in managing stock levels and storage costs
  • Particularly suitable for bespoke or customized products
• Purchase to order (PTO)


  Helps in reducing storage costs and provides more certainty in planning
• Main issue with Purchase to order (PTO)

  May not be able to meet extreme unexpected surges in demand