Sales and Operations Planning (S&OP)

In order to have successful operations planning, the whole picture must be considered, from understanding product demand, operations capabilities, and supply chain capabilities to product fulfilment. This allows you to optimize inventory buffers on each level of the supply chain, allowing for reduced lead times and increased order fill rates. Setting inventory levels based on service levels commitments by customers, groups of customers, SKU or product groups can avoid capacity and material shortages. Successful companies look through multiple scenarios and compare the financial successes and consequences of each scenario to decide which is best for their company. This process allows you to have the right product mix, right level of inventory from raw materials to finished goods and in between, as well as ensuring the desired service level at lowest cost of operation.

Benefits: 

• Reduce lead times
• Profitably deploy inventory across the enterprise
• Synchronize material planning, capacity planning, and allocation planning
• Improve service levels
• Reduce inventory management costs and obsolete inventory
• Reduce expediting costs
• Manage by/co products
• Optimize safety-stock and raw-material levels