Explain why sales and operations planning should transcend company boundaries.
Cite examples of how employing this analysis technique could be used in it's supply chain as a competitive advantage.
Sales and Operations Planning
Sales and operations planning of the every business firms should transcend the company boundaries in order to capture the larger part of market. Limited planning for sales and operations will not be very much beneficial for the company. Further, organization also has to face the problem of limited availability of resources. Due to the emergence of globalization, every company has to made efforts in order to sustain in domestic as well as in global market. Rapid changes in external factors also encourage the company to cross the national boundaries (Olhager & Persson, 2007). In order to sustain in the international market, company has to adopt new technologies, which will helps in serving the customers in better way.
A company should also transcend the national boundaries in order to manage the entire business. Crossing national boundaries helps the company in handling their customers, suppliers and partners that are situated outside the country. Company can also be able to increase their sales through exporting of their products outside the country. While making the plans for sales and operations, company should also integrate the factors that are related to outside country (Gattorna, 2009). External factors also affect the sales and operations of the country. Effective sales and operations planning help the company in achieving the competitive advantage.
Moreover, planning for sales and operations activities helps the company in doing forecasting of future sales. Accordingly, company can be able to make arrangement of resources from outside countries. Further, they can also maintain the required capacity in their operational activities. Involving international factors in sales and operations planning, helps in managing the future risk. Company can also able to manage the ...
The solution discusses why sales and operating planning should transcend company boundaries.