Reference no: EM132204921

Read the following and answer the question below: discuss what this integration could do to improve a company's bottom line.

As operations managers look to enhance the efficiency of their supply chains there are several ways that they can integrate a system that best suits their company's need for supply chain management. Pull data allows for point of sales information to be shared and helps to generate an accurate inventory order based on current inventory, outstanding orders, and demand. Another effective inventory management strategy is CPFR, short for collaborative planning, forecasting, and replenishment. CPFR allows members of the supply chain to share forecasting, demand, and inventory information with one another allowing for reduced costs and increased demand. Sales and operations should work together on inventory management as the sales team is a at the front of the customer experience. The sales team will know which products are higher in demand and what customer trends are appearing in their stores. If a company has multiple stores in multiple locations, one store may experience a demand for one product, but another store may experience a demand for a totally different product. In this scenario, both stores would need a different amount of stock in order to meet customer demands. Operations managers need to be aware of the difference in demand from one region to another and should refer to the pull data from these retailers to accurately forecast the demand and supply of their products. CPFR will also allow the supply chain members to review the pull data and prepare a forecast for the retailers, which will then allow for accurate order placement and supply to each of the retail stores. Heizer, J., Render, B., & Munson, C. (n.d.). Operations Management Sustainability and Supply Chain Management (12th ed.).