Supply Chain Planning Department must be treated same as Sales And Finance Department

The Supply Chain Planning Department Should Be Treated The Same Way As Sales And Finance Department!!

Have you in any way been relaxing at your office desk during your quiet time and all of a sudden you got a phone call, your boss badges into your office and crashes down on you like wildfire because of a promotion that is not working, or an inventory stock or that a large customer’s order is being delayed for up to 3 weeks?

When these things happen, the boss will start putting blames upon you and wants to know what went wrong. Often like the above scenario mentioned, the Supply Chain Planning department which consists of the production planning, Inventory Planning, Demand Planning and materials management are being blamed for failure to meet the demands of the client.

The First-class planning process should be treated by Businesses the same way as purchasing high-end top notch insurance which will enable the companies to have a relaxed mind that they will be protected from unforeseen circumstances by the insurance policy.

Unfortunately, superior Supply Chain Planning department is being treated by most companies and executive as a forgotten cheap insurance, and are only referred back to when something goes wrong. In fact, the respective financial and sales team are being over compensated by these companies, no enough resources such as human and monetary capital are being allocated to the Supply Chain Planning department.

It seems the supply chain planning department which acts as a tripod of the business that makes the business successful is being overlooked as the third leg. Many companies and businesses do not even assign any individual when it comes to sales forecasting. I am sure that you may have heard about this phrase‘’roughly right and precisely wrong” before but what does this phrase actually entail? It actually means that the ones achieving success in the competitive world economy are the companies and business with high quality supply chain planning processes and top notch planning individuals.

Isn’t it sensible when there is more efficiency and effectiveness in your organization if you know the financial impact you are preparing for and also if you have a strategic plan? So, more investment should be made into the supply chain planning department in terms of human capital and technology.

This is just like getting an insurance which you paid for and planned.

So business integration planning such Sales and Operation Planning (s&op) should be implemented by Companies and business so that proper planning and flexibility can be ensured.A supply chain planning department that is well organized will improve customer service, reduction of inventory levels and also increase the profitability of the company.