Sunsweet Growers Supply Chain - Essay Example

The supply is controlled by the weather while the demand is controlled by spikes and shifts in demand like for other manufacturers. Due to the supply being clustered in one area and the processes after harvest being too many it raised a lot of problems for the company in terms of costs. The company needed a system that could solve the problem of line utilization, scheduling, reducing inventory, transportation costs, and lead time. The sales and operations (S&OP) program was adopted to help alleviate these problems. It was meant to handle problems such as unanticipated demand, shortages in supply, and production disruptions. The paper-based spreadsheet system that the company previously used became inadequate in supporting the complex nature of the business while also not meeting the demands of the company. This is mainly because the company was too big and more complex while the spreadsheets relied on outdated data that required a lot of effort to analyze.

The S&OP program is implemented in different stages with the first stage being scrubbing all the previous data and unifying it in one database. This step was mainly meant to ensure that all the participants of the supply chain worked together with each other and understood the other departments accordingly. This was followed by a five-phase implementation program to show the value of the S&OP program early in the transformation. The first phase required improving demand visibility that necessitated better communication at the decision-making level while also ensuring that every member of the group gained the same data and each other’s goals. The program also helped in training the users of the program while also testing the scalability of the program without disrupting the company’s existing workflow.

The statistical forecasts and preparing plans for price changes and promotions in the future and an analysis of demand data were also improved thereby helping in maintaining and solving the demand problem. The warning alerts in demand planning were also essential as they helped in tracking the level of demand in specific periods and forecast accordingly. Inventory planning was also important in forecasting the level of stocks and controlling the stock levels to ensure they were maintained at optimum levels. The supply planner ensured that the company not only evened out its production requirements but also maintained a uniform labor force throughout the year. There was also finite scheduling that was important in handling the day-to-day activities at the company and ensuring that the company was versed with the best activities thereby reducing the costs. The program after completion had achieved all the targets in about half the time that had previously been anticipated.

Although the program is flawless and seems very efficient it is important to set up an internal control system to ensure that the implemented mechanisms are working. It is also important to look for ways to improve the efficiency of the program and as a result, help the company in improving its structures better.