| Have you ever been sitting at your desk during a | | | | department is the overlooked third leg of the |
| quiet day when all of a sudden your phone is ringing | | | | business tripod making the company successful. |
| off the hook, your boss and his/her boss are at your | | | | Some, like John Gattorna author of Living Supply |
| office door, and the familiar ping of "you've got mail" | | | | Chains, would argue that supply chain management is |
| comes crashing down upon you like wildfire because | | | | the business. |
| of an inventory stock out, or a failing promotion | | | | When it comes to sales forecasting or the demand |
| because an important detail was left out, or a large | | | | plan, many companies don't even have a single |
| customer is unhappy they have to wait three weeks | | | | dedicated individual assigned. I'm sure you've probably |
| to get their order? | | | | heard the phrase "roughly right rather than precisely |
| It is times like these that the finger pointing exercise | | | | wrong" before, but what does it actually mean? It is |
| commences and the powers that be "want answers" | | | | my contention it means that companies with superior |
| as to what went wrong. Often, like the scenarios | | | | supply chain planning processes and top quality |
| mentioned above, the failure to meet the customer's | | | | planning people are the ones succeeding in this world |
| expectations, rightly or not, falls upon the supply | | | | economy in which we compete. |
| chain department (production planning, materials | | | | Doesn't it make sense how much more efficient and |
| management, inventory control, customer service are | | | | effective your organization will be if you know what |
| other names commonly used within businesses to | | | | you planning for and what financial impact to prepare |
| depict the supply chain). | | | | for? So, why don't companies invest more into the |
| Businesses should treat first-class planning process | | | | supply chain planning process in terms of technology |
| the same as buying high-end quality insurance and | | | | and human capital? |
| have the peace of mind their "policy" will protect | | | | The bottom line is much like insurance you get what |
| them from unforeseen circumstances. | | | | you planned and paid for. |
| Unfortunately, most companies and executives treat | | | | Companies should strive to implement business |
| superior planning like a forgotten cheap insurance | | | | integration planning such as Sales and Operations |
| policy and only refer back to it when something bad | | | | Planning (S&OP) to ensure proper planning and |
| or wrong happens. In fact, too many companies over | | | | flexibility to their financial and operations performance. |
| compensate their respective sales and financial teams | | | | A well run planning department will lead directly to |
| and do not allocate enough resources, both human | | | | improved customer service, reduced inventory levels, |
| and monetary capital, to the supply chain planning | | | | and increase the profitability of the business. |
| department. It seems the supply chain planning | | | | |