Sales order processing creates havoc in supply chains

Many companies are facing the day to day battle of managing demand and matching it to supplier delivery plans whilst production planners turn this process into a manufacturing schedule. Both material and manufacturing planners are dependent on the demand management aspects of the business with sales order processing being a major part of this process in many cases.

When you think about it demand is driving the capital equipment, materials supply and inventory levels across materials and finished products as well as the direct labour resources. In other words demand is driving the entire business assets and cost base.

Then ask yourself why do you have so little focus on the huge savings that can be made from good systems and procedures in sales order processing and demand management. Add to this the development of the customer base in aligning processes to mutual benefits and you potentially can save an absolute fortune. Whilst increasing flexibility to the market place, creating greater stock availability and reduced lead times.

Business Tip:

Before you invest in capital to increase change over or flexibility, before you start a mission to drive down inventory levels, before you start a project to increase OTIF (On time in full) deliveries to your clients. Check out the front end of all your activity sales order processing and demand management. Small improvements in these areas deliver vast improvements further down your operations.

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