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The decisive role of technology in sales and operations planning

The accelerated pace of the market, added to its increased competitiveness, have made supply chain management one of the most important aspects of the business. Today, precisely meeting the demands of the end customer, respecting deadlines, maintaining product availability, requires a much greater management effort on the part of the manufacturer and retailer. In this context, new concepts and solutions are required, such as Supply Chain Network (SCN).SCN has been gaining strength in this fierce scenario. This is because this methodology has been used by many companies to raise the <a style="color: rgb(82, 139, 196);" rel="noopener noreferrer" href="https://neogrid.com/en/blog/what-is-supply-chain-management">quality of their supply chain</a>, by developing a macro view, including other organizations, flows and analysis in their processes.In other words, the supply chain network provides a more connected look to the supply chain, creating a true network, where partnerships are established and external analyzes are conducted. All this with a focus on generating value for the customer.Do you want to better understand the supply chain network? We've prepared this post to assist you. Check it out!<h2>What is Supply Chain Network?</h2>In a simplified way, we can understand SCN as a movement evolving the conventional supply chain, practiced in most companies. Therefore, this concept describes the flow and movement of materials and information in a strategic way, bringing together manufacturer, carriers, retailers, and other agents to meet consumer demands.The idea of a supply chain network breaks with old methodologies, which are based only on isolated analyzes of the company's own processes, without considering external movements, the impact of partnerships and the need to promote greater integration with other agents.In the old Supply Chain school of thought, for example, manufacturer and distributor just push products to the next link in the chain. They are not concerned with the actual retail needs and consumer demand. This leads to excess inventory, lost sales, and a major imbalance in relationships.On the other hand, in a network approach, actual consumer demand drives the supply chain and replenishment mindset. The links no longer push merchandise, <a style="color: rgb(82, 139, 196);" rel="noopener noreferrer" href="https://neogrid.com/en/blog/demand-driven-supply-chain-and-how-it-works">but distribute according to sales made to customers</a>, sending only the necessary quantity, at the right time and to the right place.Thus, supply chain network is a smart way to coordinate business processes, from a holistic view of the supply chain, considering the opportunities and weaknesses of each node, each shipment and each decision made.<h3>How important is it for companies?</h3>As we've mentioned, what happens is that currently many companies still tend to focus only on their organization. In other words, there is an intense concern with what they produce or supply, and they forget to assess what the end customer actually buys.In this context, the assessment of the supply chain network is extremely important, as it allows companies to review the general movement of materials and information <a style="color: rgb(82, 139, 196);" rel="noopener noreferrer" href="https://neogrid.com/en/blog/discover-the-5-advantages-of-synchronization-in-the-supply-chain">from one end of the process to the other</a>.That is, all product movements, until reaching the end customer, are monitored. Consequently, different organizations share data and information, nurturing and producing a network that is even more aligned with the demands of this consumer.This monitoring is what guarantees greater visibility to the processes. As a result, then we have:<ul><li>more strategic informational subsidies for decisions;</li><li>more robust support for measuring the value of creating partnerships;</li><li>effectiveness of the interoperability of processes and companies — considering the performance of each agent in its corresponding stage.</li></ul>This has a direct impact on the quality of deliveries, operating costs and the level of competitiveness of the manufacturer and retailer, for example, as the communication and operational flow becomes more efficient.A concrete example of this is the visibility of inventory and sales data. The retailer shares information with the manufacturer, which it uses to assist in making better decisions. When noticing that one of its products is not producing good results in a certain region, it can review the delivery of this item or take actions to improve performance.It is also possible to perform automatic resupply. By receiving daily sales and inventory data from the retailer, the manufacturer can manage its products according to consumer demand, automatically sending new items when needed.<h3>Improved integrative flows</h3>In a supply chain network, it becomes much simpler and more productive to follow the progress of activities. The relationship generated between organizations, for example, gives companies more control over two key points within these operational links. And these points are:<ul><li>material flow: circulation of raw goods and merchandise, which are the foundation for manufacturing and delivery of ready-to-use goods to the end consumer;</li><li>information flow: demand of the end consumer deployed on each node in the network. That is, what each company must deliver to serve the consumer.</li></ul>That said, the conclusion reached is that the more detailed the supply chain network, the richer the data obtained from activities. At this point, <a style="color: rgb(82, 139, 196);" rel="noopener noreferrer" href="https://neogrid.com/en/blog/why-invest-supply-chain-digitalization">it is critical to use technology to assist in the collection</a>, organization and use of information.<h3>Strengthening the quality of deliveries</h3>Due to the competitiveness featured in the current business scenario, it is essential to innovate and get ahead of the competition, especially in an area as strategic as the supply chain.Actually, here the network management model shows its importance. As we've seen, enhancing the use of data and greater connectivity of processes and organizations is the basis for positive changes such as:<ul><li>strategic planning;</li><li>alignment with the customer and market profile;</li><li>development of new product lines;</li><li>optimized POS resupply;</li><li>smarter replenishment schedule;</li><li>exploring new markets;</li><li>greater control over the company's inventory.</li></ul>Going further, SCN allows companies to compare the current state of their supply chains to different scenarios. Thus, it is possible to establish strategic objectives and goals based on an overview of activities and solid metrics.<h3>How to ensure the success of this network?</h3>When setting up large networks, analyzing the information generated can become a very complicated activity. Hence, you must use the appropriate systems, indicators, and metrics.At this stage, using technology and specialized resources for supply chain management is essential. With technological solutions, the synchronization process of manufacturers, retailers, distributors and carriers is better aligned with consumer demands.Information systems are the key for companies to communicate quickly, exchanging information, data, and documents in real time, enabling the alignment of all the links in the network to any changes that occur in the processes.As a result of the use of technology, it is possible to optimize the network and make informed decisions about, for example:<ul><li>plant location and capacity;</li><li>Inventory control;</li><li>Distribution locations and sizes</li><li>Customer service levels;</li><li>Sales data;</li><li>What products to produce and where;</li></ul>Finally, the Supply Chain Network, as you learned, has a great impact on the manufacturer's relationship with retailers, distributors and other companies that participate in the process flow that, in the end, meets consumer demands. Technology, in this context, is a great ally of organizations, as it offers the necessary resources to promote business interoperability and smart use of data.So, was this post helpful and useful for you? We would like to take the opportunity to recommend that you read our post on how to choose the ideal supplier to support supply chain management. Check it out!

The accelerated pace of the market, added to its increased competitiveness, have made supply chain management one of the most important aspects of the business. Today, precisely meeting the demands of the end customer, respecting deadlines, maintaining product availability, requires a much greater management effort on the part of the manufacturer and retailer. In this context, new concepts and solutions are required, such as Supply Chain Network (SCN).SCN has been gaining strength in this fierce scenario. This is because this methodology has been used by many companies to raise the <a style="color: rgb(82, 139, 196);" target="_blank" rel="noopener noreferrer" href="https://neogrid.com/en/blog/what-is-supply-chain-management">quality of their supply chain</a>, by developing a macro view, including other organizations, flows and analysis in their processes.In other words, the supply chain network provides a more connected look to the supply chain, creating a true network, where partnerships are established and external analyzes are conducted. All this with a focus on generating value for the customer.Do you want to better understand the supply chain network? We've prepared this post to assist you. Check it out!<h2>What is Supply Chain Network?</h2>In a simplified way, we can understand SCN as a movement evolving the conventional supply chain, practiced in most companies. Therefore, this concept describes the flow and movement of materials and information in a strategic way, bringing together manufacturer, carriers, retailers, and other agents to meet consumer demands.The idea of a supply chain network breaks with old methodologies, which are based only on isolated analyzes of the company's own processes, without considering external movements, the impact of partnerships and the need to promote greater integration with other agents.In the old Supply Chain school of thought, for example, manufacturer and distributor just push products to the next link in the chain. They are not concerned with the actual retail needs and consumer demand. This leads to excess inventory, lost sales, and a major imbalance in relationships.On the other hand, in a network approach, actual consumer demand drives the supply chain and replenishment mindset. The links no longer push merchandise, <a style="color: rgb(82, 139, 196);" target="_blank" rel="noopener noreferrer" href="https://neogrid.com/en/blog/demand-driven-supply-chain-and-how-it-works">but distribute according to sales made to customers</a>, sending only the necessary quantity, at the right time and to the right place.Thus, supply chain network is a smart way to coordinate business processes, from a holistic view of the supply chain, considering the opportunities and weaknesses of each node, each shipment and each decision made.<h3>How important is it for companies?</h3>As we've mentioned, what happens is that currently many companies still tend to focus only on their organization. In other words, there is an intense concern with what they produce or supply, and they forget to assess what the end customer actually buys.In this context, the assessment of the supply chain network is extremely important, as it allows companies to review the general movement of materials and information <a style="color: rgb(82, 139, 196);" target="_blank" rel="noopener noreferrer" href="https://neogrid.com/en/blog/discover-the-5-advantages-of-synchronization-in-the-supply-chain">from one end of the process to the other</a>.That is, all product movements, until reaching the end customer, are monitored. Consequently, different organizations share data and information, nurturing and producing a network that is even more aligned with the demands of this consumer.This monitoring is what guarantees greater visibility to the processes. As a result, then we have:<ul><li>more strategic informational subsidies for decisions;</li><li>more robust support for measuring the value of creating partnerships;</li><li>effectiveness of the interoperability of processes and companies — considering the performance of each agent in its corresponding stage.</li></ul>This has a direct impact on the quality of deliveries, operating costs and the level of competitiveness of the manufacturer and retailer, for example, as the communication and operational flow becomes more efficient.A concrete example of this is the visibility of inventory and sales data. The retailer shares information with the manufacturer, which it uses to assist in making better decisions. When noticing that one of its products is not producing good results in a certain region, it can review the delivery of this item or take actions to improve performance.It is also possible to perform automatic resupply. By receiving daily sales and inventory data from the retailer, the manufacturer can manage its products according to consumer demand, automatically sending new items when needed.<h3>Improved integrative flows</h3>In a supply chain network, it becomes much simpler and more productive to follow the progress of activities. The relationship generated between organizations, for example, gives companies more control over two key points within these operational links. And these points are:<ul><li>material flow: circulation of raw goods and merchandise, which are the foundation for manufacturing and delivery of ready-to-use goods to the end consumer;</li><li>information flow: demand of the end consumer deployed on each node in the network. That is, what each company must deliver to serve the consumer.</li></ul>That said, the conclusion reached is that the more detailed the supply chain network, the richer the data obtained from activities. At this point, <a style="color: rgb(82, 139, 196);" target="_blank" rel="noopener noreferrer" href="https://neogrid.com/en/blog/why-invest-supply-chain-digitalization">it is critical to use technology to assist in the collection</a>, organization and use of information.<h3>Strengthening the quality of deliveries</h3>Due to the competitiveness featured in the current business scenario, it is essential to innovate and get ahead of the competition, especially in an area as strategic as the supply chain.Actually, here the network management model shows its importance. As we've seen, enhancing the use of data and greater connectivity of processes and organizations is the basis for positive changes such as:<ul><li>strategic planning;</li><li>alignment with the customer and market profile;</li><li>development of new product lines;</li><li>optimized POS resupply;</li><li>smarter replenishment schedule;</li><li>exploring new markets;</li><li>greater control over the company's inventory.</li></ul>Going further, SCN allows companies to compare the current state of their supply chains to different scenarios. Thus, it is possible to establish strategic objectives and goals based on an overview of activities and solid metrics.<h3>How to ensure the success of this network?</h3>When setting up large networks, analyzing the information generated can become a very complicated activity. Hence, you must use the appropriate systems, indicators, and metrics.At this stage, using technology and specialized resources for supply chain management is essential. With technological solutions, the synchronization process of manufacturers, retailers, distributors and carriers is better aligned with consumer demands.Information systems are the key for companies to communicate quickly, exchanging information, data, and documents in real time, enabling the alignment of all the links in the network to any changes that occur in the processes.As a result of the use of technology, it is possible to optimize the network and make informed decisions about, for example:<ul><li>plant location and capacity;</li><li>Inventory control;</li><li>Distribution locations and sizes</li><li>Customer service levels;</li><li>Sales data;</li><li>What products to produce and where;</li></ul>Finally, the Supply Chain Network, as you learned, has a great impact on the manufacturer's relationship with retailers, distributors and other companies that participate in the process flow that, in the end, meets consumer demands. Technology, in this context, is a great ally of organizations, as it offers the necessary resources to promote business interoperability and smart use of data.So, was this post helpful and useful for you? We would like to take the opportunity to recommend that you read our post on how to choose the ideal supplier to support supply chain management. Check it out!

Supply chain network: what is it and how important is it?

Understand how the conventional Supply Chain has evolved and learn how to optimize its management.

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Demand-driven supply chain: how it works

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