Sales tactical level

Another key challenge at the tactical level is to take into account the dynamics of the supply chain. Indeed, in recent years many suppliers and retailers have observed that while customer demand for specific products does not vary much, inventory and back-order levels fluctuate considerably across their supply chain. For instance, examining the demand for Pampers disposal diapers, executives at Procter Gamble noticed an interesting phenomenon. As expected, retail sMes of the product were fairly uniform there is no particular day or month in which the demand is significantly smaller or larger than any other. However, the distributors placed orders to the factory that fluctuated much more than retail sales. In addition, P G s orders to its supphers fluctuated even more. This increase in variability as we travel up in the supply chain is referred to as the Bullwhip effect. For more on this effect, see Simchi-Levi et al. (1999). 

Electronic collaboration can be undertaken in three ways transactional (the transmission of fixed-format documents with predefined data and information fields) information sharing (a one-way process of providing access to information such as product description and pricing, sales information, inventory and promotional calendars) and collaborative planning (electronic collaboration at strategic, operational and tactical levels). 

Taken together, the confirmed sales report and the sales prospects report enable a reasonably accurate assessment of future staff needs and revenue to be made. In particular, they allow recruitment tactics for the next two or three months to be determined. Note, however, that this is at a very coarse level a need for an increased number of grade 4 staff may be apparent but the reports do not indicate, for example, whether they should have experience in air traffic control systems or payroll. 

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