Interaction between production and sales management and enterprises

Interaction between production and sales management and enterprises

The production and sales department are the most frequently interacting department in the enterprise. Good interaction and cooperation between both departments are closely related to the performance competitiveness of the enterprise. Only through a good tool to share the synchronous information then we could complete the routines and meetings effectively and make the right decisions for handling enterprise operation situations. Therefore, companies must integrate various operational activities and resources such as processes, organizations, technologies, processes, and products to achieve the goals of effectively utilizing resource information and enhancing the overall competitiveness. The tool to achieve these goals is the Enterprise Resource Planning System, which is also called ERP.

The unsynchronized supply and demand information on the production and sales has a negative impact on the enterprise, which is often larger than expected. We could try to examine whether our company has faced the following problems caused by unsynchronized production and sales information:

  1. Communication among departments is difficult and inefficient

Since there are no records in the system, what could be obtained is not timely or complete information, so it takes more time to organize the information.

  1. The sales plan cannot be tailored to customer requirements

Due to the inability to grasp the current production capacity, it is impossible to meet the more needs of customers when dealing.

  1. Improper production planning leads to increasing inventory costs

If overestimate the demand, the cost will be in the inventory due to too much production. If underestimate the demand, it will lead to the inability to meet customer orders, even inaccurate delivery.

  1. The company can’t identify beforehand the potential risks/opportunities

Companies can’t immediately identify the risks/opportunities and through the company’s capacity and sales to do the preparations, which could make it difficult for companies to maintain long-term competitiveness.


The biggest problem in information sharing in the face of coordination between supply and demand is that information must be synchronized. There must be a platform to integrate the information on both production capacity and sales. In order to balance production and sales, we can use the ERP to integrate the production and sales information to implement the right process planning to achieve balance between supply and demand.

  1. Effective production and sales meetings

The department must prepare some accurate information for production and sales meetings. In order to be able to report production and sales, we can know if there is a balance between supply and demand.

  1. Do customer management and standard order processing

To classify customers with the marketing policy of focus on the important customer and scarified the small customer to meet the needs of key customers. At the same time, it is necessary to standardize the order, and limit or delay the delivery of products beyond the production capacity load.

  1. Implement the daily production status of the production department

Production department is required to report daily production status and continue to track the abnormal progress. Use ERP to request the production department to communicate with the sales department and share information such as out-of-stock product status and abnormal production conditions.

  1. Strategically allocate inventory resources

Analyze which customers should prioritize the allocation of resources, prioritize the needs of key customers. At the same time optimize production and inventory, reduce the inventory of products and raw materials, and make costs more efficient.

The key to successfully balancing the balance of production and sales is to make timely and proactive decisions. By using ERP to narrow the gap between production and sales information sharing levels, the satisfaction of customer needs and the creation of customer value can be significantly improved, enabling the entire enterprise to operate more efficiently. Business leaders can identify opportunities and risks based on accurate production and sales information, make the right decisions to improve the company’s competitiveness, and ensure that the company continues to grow.

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