Sales And Operations Planning Essay

Question:

Discuss about the Sales and Operations Planning.

Answer:

Main Purpose of the Article

The main purpose of this article is linked to its title "Information sharing for sales and operations planning: Contextualized solutions and mechanisms” by (Kaipia, Holmstrom, Sm?ro, & Rajala, 2017). It strives to establish the benefits that accrue the organization when they design a strong system that will facilitate the sharing of sales information with customers through well-planned operations. The article notes that sharing sales information as from lower level as retailer helps the organization to plan its operations based on the needs of the customer. The article takes two examples to test the applicability of information sharing for sales and operations planning between two organizations. In the first organization, where the management embraces the sharing of sales information to build on operations derived more benefits. On the other side, the organization that did use the approach of information sharing for sales to plan for its operations appeared to suffer. Therefore, it is well evidenced that the main purpose of the article links with the operations management which is the topic under discussion.

Key Questions for the Article

The major question arising from this article is whether relying on information sharing with the customers helps the organization derive certain benefits. The article compares whether introducing information sharing system in the sales and operations planning purpose produce or not produce benefits for the organizations applying it. Secondly, another question in the article aims to look how the existing challenges that face organizations that apply information sharing in their sales and operations planning system.

Secondly, the key questions coming out from this article can be identified in the research gap. Under this section, the article aims to determine how elaborative mechanisms can improve expected outcomes from information sharing from the perspective of the manufacturers. Another question is how the manufacturer can take advantage of a point of sale information to improve operations management. Lastly, there is a question on how the companies can use collaborative sales and operations planning system to improve their operations management.

Most Important Information

Apart from the primary data that involves the author collecting the information himself, the secondary is also important for the development of the article. In fact, the writing and discussion of academic articles are largely linked to the existing information. Under this section, this paper will analyze the secondary information that has been used by the authors of their study. First, the article uses the secondary information to look at the challenges that befall organizations which introduce information sharing in their sales and operations planning system.

The article has relied on literature review as the major source of its secondary information. The literature review used in the article highlight the potential benefits as well as the drawbacks that can face companies using information sharing in their operations planning processes. In one of the secondary source in the article maintains that are a significant number of benefits associated with the application on information sharing in sales and operations planning management ( M?rcio, Scavarda, Fernandez, & Scavarda, 2012). However, another information goes further this study because not situations contribute to benefits as the result of data sharing. Therefore, the benefits of information sharing will only be achievable in special situations.


Secondly, another source used in the article argues that not all products can be subjected into information sharing. Also, if the organizations anticipate deriving benefits from this approach of operations management they have to design different information sharing systems for different products (Ellinger & Keller, 2010). The secondary data used in this article is attributable to the topic of operations management. Therefore, it is doubtless that this article uses information that has a strong interconnection between information sharing for sales and operations planning management.

Thirdly, the article was supported its position by using model-based studies from secondary sources that explains the benefits gained by the organization depends on features of the model and assumptions applied in the study (Gimenez, 2015). For example, the secondary information noted that if the supplier uses a single retailer to evaluate the benefits of information sharing may assume that sharing information will the customers helps the organization improve its operations management. On the other hand, several studies used in the article assume that if the organization have access to high demand, sufficient supply, and improved process data in the supply chain the operation performance of the company will automatically improve. However, this cannot work effectively without introducing the system of sharing information with the customers and all other concerned parties.

Again, the article goes ahead to rely on the secondary data to argue that there are contexts where benefits cannot be realized. For example, the authors of the article argue that in the event where there is accurate forecasting, low inventory costs and short lead times contributes to reduced risks even without employing information sharing in the operations planning. Kaipia, Holmstrom, Sm?ro, & Rajala (2017) looks at both positive and negative side of introducing information sharing in the operations planning management.

Another secondary information used in the article supports that it is not a guarantee that information sharing will contribute improved performance. However, this source assumed that there is improved performance largely when information sharing is operational processes are used within the company as well as between the participating companies. The Huge volume of secondary information used in this article recognizes the importance of information sharing in operations planning. The majority of secondary sources argue that there are numerous benefits when a collaborative sales and operations planning (S&OP) is applied (Godsell, 2010).

Several authors that have carried out studies used as the secondary sources in the article argue that examination of the more collaborative sales and operations planning has a variety of benefits for the organizations that apply it. For example, when the demand factor from the customers’ side is known, the company will establish systems that will oversee improved retail management promotions. This means that all the customers’ demands will be met satisfactorily. Similarly, the company will reduce or prevent extra costs of producing goods that may not be needed by the customers. Therefore, sharing sales information helps to improve the internal operations of the company.


Another simulation study used in the article maintains that sudden change in demand point on sale data is the important information for the manufacturer to consider (Harwell, 2012). Similarly, the model-based study used in the article finds out that the value of information sharing is very important for assessing retail replenishment for perishable products. However, the author using the model-based study argue that value of information will depend on several factors such as product price and demand variability.

The respondent survey has also been used in this article as a secondary source. The author of the source containing the survey argues that supply chain dynamism is the subject of valuable information (Holt, 2012). This means with sales sharing information it will be difficult to evaluate and understand the dynamisms associated with supply chain processes. This makes the management of the supply chain difficult because some of the internal operations do not conform to the external demand as exhibited by the customers. However, with collaborative planning, there is a high probability that the getting the demand forecasting correctly.

Improving new product introduction has also relied on secondary sources as shown in this article. The source used in article depicts that use of demand information helps the company t forecast potential sales (Cauchois & Taghipour, 2016). This helps to avoid the challenging situations that come with new products. For example, the velocity of sales and getting the company new products being distributed to the international market becomes a big challenge. However, with the introduction of information sharing for the sales in collaboration with operations planning to helps the company to have prior knowledge about the customers’ demand and needs. The application of information sharing eases the process of getting new product in the market.

From the secondary information used in this article, it is quite evident that it has effectively used secondary information that relates to operation management. The article has looked at both sides of information sharing. For example, it has addressed the benefits associated with information sharing as well the situation where the value of information sharing cannot work (Cavusoglu, Cavusoglu, & Raghunathan, 2011). Again, the article has also considered various studies and models that have carried out and developed respectively to undress the topic under discussion. Therefore, it is indisputable that this article has effectively discussed the sharing of sales information for operations planning about operation management.

Main Inferences of the Article

The major inference in this article depicts that there is an additional factor that is needed for sales information sharing for operations planning. Likewise, there are more benefits associated with the sales information sharing than there are drawbacks. However, the article also pinpoints that not all companies enjoy the benefits of information sharing. Whether the company will experience benefits from information sharing for operations planning depends on different factors and situations. For example, for the company dealing with multi-production processes finds it more beneficial to rely on sales of point information than for the company dealing with the single production process.

Another inference being exhibited in this article connote that companies need to have a prior knowledge about expected outcomes before investing in acquiring the value of information. Therefore, the company has to establish sufficient integration between sales and operations. If the customers’ sales information shared with the supplier is low, and production planning cycles are long, the value of a point on sale information may be non-existent or very small. Finally, the article infers that there are bigger challenges when introduced a new product in the market. However, with the application of the sales information sales for operations planning to get new product in the market will be very easy.

Key Concepts of the Article

The writing of the articles is based on the concepts that influence the author to develop his or her study from the beginning to the end. First, the article addresses the outcome that manufacturers experience from employing sales information sharing for operations planning. Secondly, the article strives to investigate the concept of how elaborative mechanisms can contribute to the achievement of desired operations management outcome. Lastly, the article looks at how manufacturers can use a point on sale information to improve operations planning.

Main Assumption

The major assumption arising from this article holds that information sharing for operations planning automatically guarantee benefits for the companies that use it. However, this assumption is disputed on the fact not all companies derive benefits from employing value sales information sharing. Secondly, the value of shared sales information varies with different situations and factors.

Implications

There are major operations management implications evident in this study. The article offers very important information about the operations management especially during the production of the new product. Alternatively, the article makes it clear that applicability of shared sales information with situations. Finally, the article equips operation managers with the knowledge that they should expect different outcomes when they invest on sales information sharing. This is because it may result in positive or negative outcomes.

Conclusion and Recommendation

This is one of the best articles that explains the connection between sales data and operations planning. The article goes further to explain in detail how operations managers can use a point on sale information to improve operations management. Again, the article provides the benefits and drawbacks associated with sharing sales information for operations planning. However, the article is largely based on the assumption. This makes the results of the study a bit unreliable. Therefore, this paper suggests this article could have been improved through relying largely on the primary data than on the secondary information.

References

M?rcio, A., Scavarda, L. F., Fernandez, N. S., & Scavarda, A. J. (2012). International Journal of Productivity and Performance Management Emerald Article. Sales and operations planning and the firm performance, 61(4), 359 - 381.

Cauchois, R., & Taghipour, A. (2016). Advanced Solutions for a Supply Chain with Stochastic Information. Journal of Advanced Management Science, 5(1), 9-13.

Cavusoglu, H., Cavusoglu, H., & Raghunathan, S. (2011). The value of an Interaction between Production Postponement and Information Sharing Strategies for Supply Chain Firms. Production and Operations Management, 21(3), 470–488.

Ellinger, E., & Keller, R. (2010). The relationship between marketing/logistics interdepartmental integration and performance in US manufacturing ?rms: an empirical study. Journal of Business Logistics, 26(1), 1-22.

Gimenez, C. (2015). Logistics-production, logistics-marketing and external integration: their impact on performance. International Journal of Operations & Production Management, 25(1), 20-38.

Godsell, J. (2010). Building the supply chain to enable business alignment: lessons from British American Tobacco. Supply Chain Management: An International Journal, 15(1), 10-15.

Harwell, J. (2012). Sales and operations are planning in the retail industry. Journal of Business Forecasting, 27(2), 4-10.

Holt, C. (2012). Learning how to plan production inventories and work force. Operations Research, 96-9.

Kaipia, R., Holmstrom, J., Sm?ro, J., & Rajala, R. (2017). Information sharing for sales and operations planning: Contextualized solutions and mechanisms. Journal of Operations Management, 52, 15e2916.

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