The benefits of integrated Supply Chain organizations are well documented. Sales and Operations Planning is a process with proven results when effectively implemented in a company. Predictable variability is change in demand that can be forecast. Supply and demand management through sales and operations planning (S&OP) can significantly improve performance when applied to predictable variable products. This isn’t all.
Supply Chain, Sales and Marketing organizations (if separate from the supply chain organizational structure) can influence demand through pricing actions, promotions and through information on inventory excess or shortages from manufacturing. (Chopra.)
Part 1 Requirements
Provide a definition of Sales and Operations Planning. What functions should be involved in the planning?
Discuss challenges companies have in executing Sales and Operations Planning and achieving their performance measures. Define at least two challenges and recommended actions to address them.
Why do the challenges exist if the benefits are so clear?
Part 2 Requirements
Discuss how a marketing promotion should successfully be managed in the Sales and Operations Planning process. What is important for a marketing team to communicate to the supply chain to increase or maintain the supply chain surplus? You can use a specific marketing tactic in your analysis.
What specific supply chain performance measure can be impacted by a new marketing promotion if it is not reviewed in the S&OP process? Explain the promotion or tactic you are thinking about and how it impacts the supply chain performance measure.
Develop a minimum 5 page paper that addresses the two parts and topics, with at least two references and bibliography. The cover page, abstract and bibliography do not count to meeting the minimum number of pages. All reference works must be scholarly therefore it is suggested to use the available links in the electronic library to aid your efforts.
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