Planning to meet the customer demand
Do you consider the Sales and Operations Planning to be a Value Add process or a necessary evil?
In truth, the Sales and Operations Planning must be a value add process, as they mastermind the total supply chain. Sales planning involves the flow of information, from the taking of the customer’s orders to translating them into the appropriate manufacturing and supplier’s orders. Operation planning involves the flow of materials from raw materials through to the finished product arriving at the customer. These processes flow in opposite directions in the supply chain. Therefore, sales planning, flow of information up the supply chain, is about getting close to the customers, whilst operations planning, flow of materials down the supply chain, is about getting close to the suppliers.[Download the full article here] – although this article was first written in the late 90’s there are still key lessons and understanding that still apply to today’s manufacturing environment