Question

How the sales order process will integrate with procurement process to match the demand of customer and aligning with vendors for supply of materials.

Answer 1

Keeping demand aligned with supply in the modern extended supply chain is growing more and more challenging Globalization,increasing freight rates,capacity constraints,regulatory presssure and partner collaboration are just a few challenges that need to be constantly addressed to maximize the effectiveness of the upply chain.

When an organisation has a clear grasp of its capacity constraints and an understanding of demand patterns.It is in good position to develop strategies for matching supply(supply of materials) and demand(demand of customer).There are two general approaches for accomplishing demand and capacity:

i)The first is to smooth the demand fluctuations themselves by shifting demand to match existing supply.

ii)The second general strategy is to adjust capacity to match fluctuations in demand.