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Module 5 - Assignment 1

supply chain

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Freddy Bascha
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247 views2 pages

Module 5 - Assignment 1

supply chain

Uploaded by

Freddy Bascha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sales play a crucial role in the supply chain, without sales, the supply chain would not

exist, and sales affect production, inventory, and of course logistics. Some key factors
of sales in the supply chain are as follows. First, we have the demand signal, which is
sales that provide current and immediate data, which are provided on consumer
demand.

This data evaluates and informs proposed actions along the supply chain; they govern
everything, from raw material procurement to product consolidation and manufacturing
planning. Higher sales suggest that the company needs to resupply, whilst lower sales
indicate a potential decrease in profit and production. We also have inventory
management, which is data generated from sales. To maintain inventory balance and
generate stock levels to minimize shortages or overstocking, supply chain managers
must change inventory purchase orders. Another important component that sales
influence is production planning; sales data indicates a tendency based on previous
sales to determine how much product must be created.

One final factor I will add is logistics and Distribution, In Logistics but more specifically in
Distribution, sales greatly influence how products are distributed. High sales in a
specific city will probably lead to major adjustments in logistics, for example, suppose
you have a warehouse of fish and tuna located in Tampa Bay, but 60% of sales come
from the Miami-Dade area, you should highly consider relocating your warehouse in
Doral for example, customer satisfaction would probably go up because they would
receive their product sooner, or they can easily pick them up if they wish. Directors
would need to make suggested decisions if there would be specific warehouses or
distribution centers to meet demand. Taking into account forecasting in sales is key to
understanding its importance in the Chain Supply.

For demand forecasting to be successful, precise sales data are critical. Businesses
can plan production and inventory by forecasting demand based on sales trends from
past years, or even past months. Sales predictions are utilized to plan action, anticipate
and address social demands, and replenish inventory within your particular supply
chain. Seasonal and cyclical trends are another important component in sales regarding
chain supply. It is important to consider that various forecasting methods and seasonal
or economic cycles frequently influence sales inclinations.

For example, if you own and manage a farm, sales of cow meat may spike during
summer or specific holidays. Another example is that you must be prepared to supply
the stock of turkey for Thanksgiving and Christmas, and you may have to require
adjustments in the supply chain well in advance.
Citation:

“What Is Supply Chain Forecasting?” O9 Solutions, 16 Sept. 2024,


o9solutions.com/articles/what-is-supply-chain-forecasting/.

Belda, Bernard. “The Ultimate Guide to Logistics Sales.” IFreight Systems, 14 Feb.
2024, ifreightsystems.com/blogs/ultimate-guide-to-logistics-sales/.

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