Sales and Operations Planning (S&OP) – Demand Planning

Sales and Operations Planning (S&OP) is a powerful decision making tool for business executives as well as line managers.

According to Tom Wallace, “S&OP enables the company’s managers to view the business holistically and gives them a window into the future”.

Positive results that companies have gained from S&OP include hard benefits:

1. Such as improved customer service and
2. Lower inventory and soft benefits, such as
3. Improved teamwork and
4. Better decision-making.

The value to any company of balancing supply and demand has long been understood.

When we add volume and mix to this equation, we get the four fundamentals needed for effective business balance.

For those companies grappling with these 4 fundamentals, S&OP can provide excellent benefits. S&OP’s role is to balance supply and demand at the volume level.

Companies who do a good job at this level find much less problem in balancing the supply and demand at the mix level, thereby reducing inventory, improving customer service, and improving manufacturing efficiencies.

Our team at Logistics VietShip has first-hand experience in demystifying S&OP and making it happen within your business.

Whether you are working to the Oliver Wight model, the Buker model, the Tom Wallace model or any other model, we can provide assistance in areas such as S&OP implementations, S&OP improvements and S&OP education.

Our specialist consultants work alongside our customers to target significant benefits such as:

• Reduced inventory investment.
• Improved customer service levels.
• Reduced inventory obsolescence.
• Increased inventory/asset turns.
• Increased supply chain flexibility.
• Improved forecasting accuracy.
• Improved inventory deployment.