What Kind of Organization Do I Need?

A well organized and efficient diaper operation requires much more than just line operators and the people to take care of packaging and warehouses.  There are many areas that have to be orchestrated to reach the objective: marketing, sales (local and exports), process engineering, quality assurance, research and development, machine shop, instrumentation, production planning, maintenance, purchasing, spare parts, general accounting, finance, software and hardware administration, general and strategic direction, to name a few. A new factory will have to start with many people having to perform multiple roles; as the operation gets larger, they will need to be more specialized.    A very large operation will have to be so specialized that there is room for many subdivisions.  For example, just the marketing area could be subdivided in such departments as: private labels manager, own brand development manager, consumer complaints administrator, new bags design, market intelligence, etc.  Overhead costs move in direct proportion to the cost of labor and the efficiency of the administrative organization; typical sales overhead costs range from as low as 14% for a very efficient factory  to as much as 26% of the cost of sales and it is a key factor to guarantee the success of the business. At Richer Investment we can help you understand what is needed to create an efficient organization for a diaper manufacturing and marketing operation.   A few hours of consulting could save you thousands of dollars.

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