Supply chain professionals routinely discuss the various trade-offs between customer service, inventory investments, production capabilities, supply availability and distribution concerns such as disparate data sources and disconnected processes, silo-ed planning with functional goals, ad-hoc collaboration via email and excel, planning decisions are made without supply chain constraints and profitability and above all inability to simulate and understand impact of decisions.
They consider robust Sales and Operations Planning (S&OP) process is vital for bringing together executives from major operational departments — sales, materials/procurement, manufacturing, transportation, marketing and finance — and determining how best to manage company resources and make future investments.
One of the recent researches suggest that there are 5 meaningful ways to link SO&P Output to operational or execution processes:
- Visibility: The SO&P plan and outcome of the executive meeting are communicated immediately to the operational team globally.
- Monthly planning tied up to weekly operational reviews – A small cross-functional team monitors on plan assumptions and guides the organization through plan execution with weekly focused operational reviews.
- Connection to order-to-cash processes – In the weekly operational reviews, decisions are made on allocations and available-to-promise(ATP) rules.
- Translation of go-to-market activities – For demand orchestrators, the connection of market potential and demand-shaping activities to commodity strategies delivers excellent value.
- Sensing and eliminating waste – Sensing slow and obsolete (SLOB) Inventory quickly and moving it when inventory has maximum value is a defining characteristic. In successful organizations, there is high importance of SLOB. Plans are formulated in the SO&P process to maximize value by moving it fast through the channel.
VisionTree addresses such S&OP challenges with SAP Integrated Business Planning Transformation Service to offer inventory optimization and following Grassroute transformation benefits:
- Create an optimal business plan to drive revenue growth and market share.
- Effectively balance demand and supply and achieve financial targets.
- Increase speed and agility of the planning and drive most profitable response
- Improve forecast accuracy and on time delivery.
Key Target Audience: Supply Chain Planners, Inventory Planners, Logistic Planners, Chief Operating Officers, Sales Planners, Business Planners, Transformation Leaders