Research On The Improvements Of The Sales & Operations Planning In Teradyne Shanghai Branch

With the pace of the global economic slowdown, manufacturing industry has come into a slow growth gradually. Enterprises does not only have to meet the diversified and personalized customer requirement, but also to face the challenges of improving customer service, products innovation, shortening the commitment LT to customer, costs reduction, etc.In order to adapt to the new normal state and meet new challenges, more and more Multi-National Corporation and China local enterprises are in urgent needs of continuous integration of the supply chain, optimizing the allocation of resources to the maximum extent, so as to continuously improve the competitiveness. While Sales and Operations Planning(S&OP) is such a set of effective business management process, not only to improve the level of supply chain management, but also to help enterprise balance its sales and production level. What’s more, it can reduce the cost of operation. S&OP can be applied not only in interior various departments, but also support the external supply chain. Through the integration of logistic and information flows with customers and suppliers, enterprises can reduce the bullwhip effect in the supply chain and gain more advantages in competition. According to the relevant statistics show that the company who implements S&OP successfully may have a plenty of direct and indirect benefits. Direct benefit is reflected in the improvement of customer service level and production efficiency, meanwhile to reduce purchasing cost and inventory level. As to the indirect benefit performance is to show in the promotion of team co-operation, more effective financial control and organization decision-making process, not to mention the enterprise culture construction.The topic of the thesis is to study how to improve the existing S&OP process of Teradyne Shanghai branch. This paper firstly addresses the related theories of S&OP and give a brief introduction of Teradyne. Then with the help of Michael Potter’s five forces model, respectively, from the industry, customers, competitors, suppliers and product five aspects to analyze the subjective and objective reasons of current problems of Teradyne. Furthermore to put forward the reform from two aspects of demand forecasting and inventory management, in order to improve the overall performance of S&OP, which is in the premise of on time delivery, to improve the demand forecast accuracy, decrease inventory level., and further enhance the enterprise’s operation efficiency and anti risk ability.. Demand forecasting proposal is to request to build an effective customer analysis system internally, and work with outside vendor on joint CFPR system. To improve the inventory management is starting from re-classify the raw materials, together with establishing inventory forecasting and monitoring system. Finally, the thesis simulates the implementation steps and pointes out the keys in the reform.Through this research, to provide possible solution for Teradyne Shanghai branch to further strengthen and improve its S&OP management, it will help Teradyne to keep on improving the management level of supply chain and to win In the fierce competition of semiconductor equipment industry.