Planning for anything is important. This is because without having a definite plan execution of any task successfully is a very difficult thing to do. Having a wonderful plan results in surplus profit. There are various key elements which must be studied thoroughly to achieve the targets like demand planning, supply chain planning, factory planning, Inventory planning, Sales and operations planning and many more. Demand Planning can be defined as a business process that encompasses futuristic predictions of demand for products and services and regulates distribution and production capabilities correspondingly. It plays a significant role in planning for various products for any organization. Many software are available which helps in demand planning. Highly skilled staff is required to operate that software which incurs a huge cost. Demand means needs and wants of the customers for products. If a company is able to meet the demand of the customers then it is obvious that the company can beat its rival.
Adequate stock must be there to cope up with uncertainties which prevail in the dynamic business world. Stock consists of all those materials that a business kept for the ultimate goals to have a purpose of resale. As it is the era of the dynamic business world, every organization needs to be agile and quick in order to survive in the market. Inventory Planning deals with making optimal quantity and timing of inventory for the purpose of sale and production. It has a direct impact on cash flow and profit margin. There are many reasons to maintain adequate inventory. Some of them are listed below.
• Uncertainty: It is necessary to maintain inventories to meet the uncertainties in demand and supply.
• Seasonal demand: Demand changes according to time but the producer’s capacity of producing stock is fixed. To cope up with this kind of situation there must be adequate stock.
• Appreciation in Value: There are chances that keeping stock for a long time may result in appreciation.
So it is important to maintain inventory.
Sales and Operations Planning aims to attain a balance between sales and operations planning and the entire demand for the supply chain planning. Sales and operations planning lays emphasis to ensure that customers demand can only be met by production, purchasing, and distribution. This is implemented to know exactly what and how much the customers are going to buy and your capability to meet this demand.
Adexa provides the best service in Supply chain planning, Inventory planning, S&OP, demand planning, factory planning and many more. So go ahead and get the best solutions for your organization.
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