Report On Supply Chain Management Management
In the current global market, supply chain is increasingly a field of research and concern for most small and large firms. This paper looks into the different processes in supply chain management initiating from materials requirement planning to sales and operations planning. Managing a supply chain in a company successfully includes everything from buying raw materials for producing the goods, to master scheduling, resource and sales and operations planning and delivering the product to the customer. The reason most companies opt for professional services for supply chain today is because they manage to cut a large amount of costs in the production and also store the right amount of stock for supplying them to the customers. This increases profitability and reduces loses in leftover stock or phased out stock. Just-in-time is considered to be one of the most useful and preferred methods today are lean manufacturing concepts. The paper also looks into the case of L'Oreal and the steps it had taken to overcome its issues in its supply chain process.
Sales and Operations planning is a business process that associates the corporate strategic plan to regular operations plans and empowers companies to balance demand and supply for their products (Wight (1999)). The sales and operations are typically divided into five stages (IOMA (2003)) in a corporate structure.
- The team gathers a formal or informal meeting to create a baseline demand forecast which is unimpeded in that it assures not what the business can produce, but what could be delivered or sold to the consumers.
- In the second step, a pre-meeting with the operations team is organized to collect information about inventory strategy, internal capacity and supply chain capacity. Parts of MRP are often used in this stage to create a time-phased image of future requirements and plans.
- The SOP team has a formal meeting to discuss the final operating plan required for the next stage.
- The fourth stage involves the distribution and the implementation of the plan where the operations team carries has to meet the required production targets and the sales team occasionally
- The final step consists of measuring the efficiency and results of the SOP process.
The master scheduling is the formal link between production planning and actual production. This plan measures and calculates significant data about processes, parts, and other resources to optimize production, and to identify the demand for a product. The output of the MPS stage is used to forecast the day-to-day cash flow. It also forms the basis for making customer delivery process and often used to identify bottlenecks i
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