Sustainable World Company Operations Plan

Sustainable World Company Operations Plan

How and where products or services are produced and the hours of operation

The products will be produced in our manufacturing plant that will be operating for six days a week. Operating time will be 10.00 am to 10.00 pm from Monday to Friday and 11.00 am to 8.00 pm on Saturday and Sunday. The manufacturing plant will have ten full-time employees. Their wages will be $7.00 per hour. During the first year of operation, we will not be offering benefits to the employees, but the company will be liable for any injuries that the employees may get while working at the manufacturing plant. Our operation policies in the stores will include a 30-day exchange policy with no cash refunds, a 30-day layaway, and a $15 fine for check returns.

Legal Requirements

Our company will adhere to legal requirements on product safety, chemicals used in production, and trademarks and copyrights. We will adhere to the General Product Safety Directive, which states that all products should be safe to use (CBI Ministry of Foreign Affairs, 2016). We will, therefore, ensure that the material used to manufacture the clothes, accessories, and shoes is safe and can not cause any allergic reactions to customers. In adhering to chemical restrictions, we will avoid using chemicals that can pose a risk to the environment or people. We will, therefore, avoid using raw materials with restricted substances such as Azo dyes, chromium VI, Perfluorooctane sulphonate, and organostannic compounds. We will also adhere to the restrictions on the use of short-chain chlorinated paraffin because they are organic pollutants. All our products will have the company’s logo to adhere to trademarks and copyright regulations.

The control processes and systems the business will use

• Quality

The company intends to maintain the production of high-quality products. This will be achieved by first ensuring that the raw materials used in production are of high quality. The quality of raw materials will be inspected by a quality control team before being approved for production. The company will also ensure that high-quality products are produced by hiring highly qualified employees such as designers with experience in producing the best designs and personalizing products to meet customers’ needs. The company will also recall all poor-quality products based on customer feedback and complaints.

• Customer service

The company will acquire employees based on their experience and academic qualifications. The workforce will therefore include people who have worked in a similar company and have the knowledge and skills required to manufacture various accessories, clothes, and shoes. The company will also offer monthly training o employees to equip them with the knowledge and skills required to improve production and sales, particularly due to the rise in fast fashion.

• Inventory

The business will be handling a lot of inventory due to the involvement of many suppliers and distributors in the supply chain. Inventory will, therefore, be managed using an inventory tracking system that will record the products in stock, those on order, expected arrival time, and what has been sold. This will help in determining the fast-moving products to increase their production and slow-moving products that need improvement, thus creating productivity and efficiency (Alhassan,2013). The inventory will be controlled at the cash register using a point-of-sale system to ensure that inventory records are updated. The point-of-sale system will record every sale when it happens. Inventory will be counted once every two weeks. Placing orders and processing paperwork will take two weeks, while the delivery cycle is also expected to take two weeks. The company will use the Last In, First Out inventory valuation method that will include selling the most recently purchased inventory first.

• Product development

Our products will be developed based on the feedback we receive from our customers and recommendations from our team of designers. Product development will include introducing new designs, personalizing existing designs, and using various materials to create unique products (Quesenberry & Kincade, 2019). Workers will be encouraged to be creative by being rewarded when they introduce unique designs.

The location characteristics necessary for the business 

The business will be located on the outskirts of the city in a building of approximately 3000 square feet. There will be ample parking space in front of the business where vehicles bringing in supplies and those collecting products to be distributed to customers will be paring their vehicles. The business will also be located near a shopping center where workers can buy food and other essential things while at the workplace. The business will also be located near the main road for easy movement of supplies and manufactured products. We intend to start by leasing the premises and later purchasing it as the business grows.

Cost estimates for rent, maintenance, utilities, insurance, any initial remodeling, and the equipment necessary for the business to operate

The business credit policies and the policy for slow-paying customers

Regular customers with good credit ratings will be allowed to take goods on credit as long as they pay within 15 to 30 days. First-time customers will not be allowed to purchase goods on credit. The company will use a contract for each sale to prevent slow-paying customers from taking too long before paying for what they purchase. The contract will outline the expected payment dates and the consequences for breach of the agreement. The company will also be using acceptance letters to ensure that the customer acknowledges the receipt of goods delivered by the company and also acknowledge that they are satisfied with the goods. This will help in vetting customers and determining their ability to pay within the required time. Invoices will also be sent shortly after the products are delivered to a customer to ensure that follow-up emails and calls are done within the shortest time possible to reduce the number of late payments.

The business policy for managing accounts receivable and payable 

Accounts receivable will be managed by ensuring that suppliers are paid as soon as the products they ordered arrive in good condition and within the required time frame. The company will establish timelines for payables and receivables and ensure that the receivables timelines are shorter. The sales department will be required to issue purchase orders, invoices, and other documentation on specific days of the month or week to create a routine that can be used. Receipts, invoices, purchase orders, shipping orders, and financial statements will be used to track accounts receivables. The company will also use an accounts payable software to automate all transactions in real-time, allowing for the quick compilation of information required for financial statements and tracking anomalies such as interruptions in workflow and delinquent accounts.

Key suppliers and what they will supply 

Our leading suppliers will be import sources, craftspeople, and textile manufacturers and distributors. They will distribute textile for manufacturing clothes, leather, rubber, canvas for manufacturing footwear, and metals used to manufacture accessories. Craftspeople will supply the recyclable material used to manufacture clothes and accessories such as polyester and nylon.

Timeline of key task milestones to start up

The business is expected to kick off by January 2021. The key task milestones will therefore be as indicated in the table below

The timelines in the table may be adjusted based on factors such as unforeseen delays in acquiring the documentation required to begin operations and changes in the business environment that could affect acquiring supplies within the required time.

References

Alhassan, M. (2013). Inventory Management System Software for Public Universities in Ghana (IMSSPUG). International Journal of Advanced Research in Computer Engineering & Technology (IJARCET), 2(8).

CBI Ministry of Foreign Affairs. (2016, October 28). What requirements should footwear comply with to be allowed on the European market? Strengthening the sustainability of SMEs through exports | CBI. https://www.cbi.eu/market-information/footwear/buyer-requirements

Quesenberry, P. P., & Kincade, D. H. (2019). Copying and product development: Definitions and practices by fashion industry personnel. https://doi.org/10.31274/itaa.8782

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The Operations Plan identifies in some detail what needs to happen within the business to ensure it runs effectively and efficiently. This section of the business plan should

Sustainable World Company Operations Plan

• be three to four pages
• identify how and where products or services are produced and the hours of operation
• identify any legal requirements
  • licensing, bonding, permits, zoning requirements, insurance coverage, trademarks, copyrights or patents
• the control processes and systems the business will use
  • quality
  • customer service – how you will acquire, train, and deploy employees
  • inventory – type and quantity, typical value of stock, turnover rate, ordering lead time, seasonal fluctuations
  • product development
• detail the location characteristics necessary for the business
  • size, building type, zoning, necessary utilities
  • whether premises will be purchased or leased
  • accessibility such as parking, foot traffic, etc.
  • proximity to transportation networks (rail, road, air, shipping, suppliers)
• include researched cost estimates for rent, maintenance, utilities, insurance, any initial remodeling, and the equipment necessary for the business to operate
• outline the business credit policies and the policy for slow-paying customers
• outline the business policy for managing accounts receivable and payable
• identify key suppliers and what they will supply
• include a timeline of key task milestones to start up