Southern New Hampshire University Integrated Sales Discussion and Responses

In this lesson, we discuss the importance of integrating sales and operations. This idea of integrated management is indeed a key tenet of supply chain and operations management practices today.

Summarize the ways through which sales and operations planning can be integrated. Then, extend your findings to additional supply chain management processes that you feel could be better integrated.

Which two (or more) processes did you integrate? Why and how?

In response to your peers, discuss what this integration could do to improve a company’s bottom line.

To complete this assignment, review the Discussion Rubric document

peer 1: Hello everyone,

Its hard to believe week 8 is here already. Sales and operations planning set the direction of the business. With the sales, the company can see where they stand financially and how much revenue they can have for operational expenses. We are constantly monitoring this on a daily basis with our supply chain of products. Currently the company that I work for is being impacted by the microchips being delivered from Japan to the large OEM automotive companies. We produce the carpets for Nissan vehicles. Our monthly sales were scheduled for 22,000 units in April. Due the the supply of microchips for our sales, Nissan has dropped to 11,000. Nissan has also lowers sales for May from 23,000 to 11,500. All week we have been in meetings on how to lower costs, rescheduled capital investments for 2022, reduction of manpower and layoffs until the situation improves. This has been very difficult to be in a meeting and agree to layoff yourself for next week. We have monitored our inventories and have cancelled raw products from our vendors because of the drop in sales. Each day all the department heads Purchasing, Logistics, Engineering, Financial, Production, and me being the manager over maintenance, all collaborate on the situation. So in this case, supply chain management for us and for other auto manufactures would be to not rely on one company to supply microchips for global production of products. The concepts provided in this class would be very beneficial for companies.

Inventory control would be better integrated for us. The major categories for supply chain risk are supplier failure to deliver, supplier quality failures, outsourcing, logistics delays or damage, distribution, information loss or distortion, political, economic, natural catastrophes, theft, vandalism, and terrorism. (Heizer J., Render B., & Munson C. 2019). This is the perfect example of what we are studying, failure to deliver due to a fire at the facility producing microchips.

This class has been great and I have enjoyed reading and discussion these topics with everyone. Thanks and good luck.

Peer 2: Hello all.

The Sales and Operations planning process allows all of the facets of a business to align. This will allow all departments to share in the mission statement and goals of the company. A thriving business begins with customer service and a solid supply chain to fulfill a customer’s order or purchase. Most large retailers such a Home Depot and Lowe’s utilize an efficient supply chain to be able to keep materials on their shelves and in stock for customer’s needs. Although, I am not sure of my personal opinions of this, a successful company can also utilize vertical integration. This is where a parent company owns their vendors and has a hand in their supply chain along with retail stores. There is a local liquor store chain here, Twin Liquors that own several major distribution companies along with their chain of stores. There business model to grow was originally to buy out the little guy but at some point, the little guys quit selling and, in an effort, to continue growing, they purchased distribution companies. Even though the little guy did not sell, Twin Liquors is getting their money through distribution sales.

By utilizing a strong supply chain and a vertical integration approach a company is able to control and maintain their supply, inventory, availability, and even their profit potential by having an equal hand in all facets of the company from materials to the customer walking out the retail door.

Heather Pavia

Reference

Heizer, J., & Render, B., Munson C. (2020). Operations management. Sustainability and supply chain management. (13th ed). Upper Saddle River, NJ: Pearson.