2. Bridging the Integration Gap

By David W. Schumann, Wendy L. Tate, and William A. Powell1

Within many companies, generating sales and executing operations to meet those sales requirements are largely disconnected; sales is accountable for generating revenue, whereas operations is responsible for cost management. Because of this disconnection, there are conflicting priorities, conflicting metrics, and many forgone business opportunities. For example, using promotions to generate sales without planning for those additional needs might create a bullwhip effect across the supply chain, causing inefficiencies, expediting, higher material prices, decreased quality, and potential labor issues within a manufacturing plant because of excess hours needed ...

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