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Elusive Integration: Linking Sales and Operations Planning
(9/13/2005) Ascet Volume 7
By M. Eric Johnson, Dartmouth College, Tuck School of Business
Dave Margulius, Enterprise Insight
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Effective sales and operations planning requires intensified levels of collaboration, trust and data integration. Fostering a commitment to relationship building, shared incentives and accountability can help.


Mapping customer delivery requirements against the realities of supply chain capability is often an endless source of friction. Demand forecasts are constantly changing, customer needs are ever more specific, and service requirements are rising in every industry. Growing overseas sourcing makes seasonal fluctuations tougher and places greater stress on intra- and inter-organizational communications. Supply chain integration has long promised to smooth the wrinkles between sales and operations planning. At a recent CIO summit hosted by Cisco Systems and the Center for Digital Strategies at the Tuck School, executives from many industries debated the challenges of integration. In this article, we highlight some of the key learnings and explore how companies have successfully integrated the forward- and backward-facing processes within their supply chains, focusing on the link between demand forecasting and supply chain implementation.


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