When plans are disconnected, different planners tend to apply their own judgment which can result in both excess inventory and customer shortages. By integrating the detailed planning steps with executive review through the S&OP process, the concept of a single plan is realized.
This single plan is utilized for demand, inventory and supply. Promotions and other external events are also comprehended. And all key factors are clearly measured so the process can be improved. This includes forecast, service levels, inventory safety stock and turns, and operations performance to plan.
Business executives should not assume cohesive planning is going on without a disciplined S&OP process
Our customers have gotten even higher return when they expand the traditional S&OP process to include SKU level inventory detail through the use of Inventory Optimization thus creating a Sales, Inventory, and Operations Planning (SIOP) process.
We help customers with SIOP process design, implementation and long-term support, and continuous improvement of planning processes.