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ID: 350954 • Letter: O
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Ans. Yes, I agree with Ling's view that better Sales and Operation Planning can lead to compettitive advantage for the organisation. Better Sales and Operations planning can reduce cost, better use of raw material or inventory, effective use of labour etc and ultimately lead to productivity of the organisation. If the organisation is productive it would definitely lead to competitive advantage for it.
S& OP has emerged as a knew emerging business concept which brings organistaions plans into one integrated set of plans. It balances the supply and demand and aligns the organisations business and strategic plans.
Now a days all organisations need to have better Sales and Operation Planning to be be more effective and productive in their area of businness. The organistions with better planning in this field surge ahead of their competitors. Those organistaions who fail to adapt or adopte better Sales and Operations Planning loose their markrtshare and sharpness in the market competition.
Procter and Gamble is one company which has used the S&OP and has been very beneficial in matching their supply with the market demand. Earlier supply demand matching was done one a month and some cases or products once a week. Now the supply demand is matched in fast moving consumer goods twice daily. This has led the company to effectively utilise its resources and concentrate on key ares which can be optimized. Also the company does loose market share to its competitors on the ground of unavailibilty of product or product being out of stock.
Once the companies gain experience in this field they are position to derive even more benefits by adopting even better of integration and innovation in the processes. If the processes of an organisation are streamlined it leads to overall effectiveness. S&OP has lot of scope and it has lead to more effectiveness and ultimately more profits for the organisations which have adopted it.
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