Sales and Operations planning.
A robust Sales and Operations Planning process is vital for bringing together key functional departments — Sales, Marketing, Engineering, and Operations — in order to determine how best to manage company resources and make future investments. It makes the following possible:
- Discussions about various trade-offs between customer service, inventory investments, production capabilities, supply availability, and distribution concerns that can turn challenges into a competitive advantage when these efforts are well organized and effective.
- Establishing a successful S&OP process, including the need to have up-to-date information regarding future time-phased demand, production capabilities, inventory status, and any limitations on resource availability and their influence on each other and overall company results.
While most companies understand that inventory can become a liability if not properly managed, many inventory management strategies and reduction programs fall short of expectations. More often than not, this is because the scope of the strategy is too narrowly focused or the reduction program is executed out of sequence.
The following outlines the suggested approach and sequence of execution that enables our customers to implement a strong value chain in which they can deploy a solid inventory management strategy that meets their objectives and expectations.
- Understand your customer’s Delivery Tolerance Level
- Configure your ERP to reflect Delivery Tolerance data
- Strengthen your Supplier Performance Program
- Optimize processes and align your ERP system with the program
- Streamline your company’s Quote to Order process
- Remove keystrokes and take advantage or workflows, macros, and notifications in your ERP system
- Improve the predictability and execution of your production schedule
- Align your ERP with the streamlined approach