Supply Chain Planning Department must be treated same as Sales And Finance Department

The Supply Chain Planning Department Should Be Treated The Same Way As Sales And Finance Department!!

Have you in any way been relaxing at your office desk during your quiet time and all of a sudden you got a phone call, your boss badges into your office and crashes down on you like wildfire because of a promotion that is not working, or an inventory stock or that a large customer’s order is being delayed for up to 3 weeks?

When these things happen, the boss will start putting blames upon you and wants to know what went wrong. Often like the above scenario mentioned, the Supply Chain Planning department which consists of the production planning, Inventory Planning, Demand Planning and materials management are being blamed for failure to meet the demands of the client.

The First-class planning process should be treated by Businesses the same way as purchasing high-end top notch insurance which will enable the companies to have a relaxed mind that they will be protected from unforeseen circumstances by the insurance policy.

Unfortunately, superior Supply Chain Planning department is being treated by most companies and executive as a forgotten cheap insurance, and are only referred back to when something goes wrong. In fact, the respective financial and sales team are being over compensated by these companies, no enough resources such as human and monetary capital are being allocated to the Supply Chain Planning department.

It seems the supply chain planning department which acts as a tripod of the business that makes the business successful is being overlooked as the third leg. Many companies and businesses do not even assign any individual when it comes to sales forecasting. I am sure that you may have heard about this phrase‘’roughly right and precisely wrong” before but what does this phrase actually entail? It actually means that the ones achieving success in the competitive world economy are the companies and business with high quality supply chain planning processes and top notch planning individuals.

Isn’t it sensible when there is more efficiency and effectiveness in your organization if you know the financial impact you are preparing for and also if you have a strategic plan? So, more investment should be made into the supply chain planning department in terms of human capital and technology.

This is just like getting an insurance which you paid for and planned.

So business integration planning such Sales and Operation Planning (s&op) should be implemented by Companies and business so that proper planning and flexibility can be ensured.A supply chain planning department that is well organized will improve customer service, reduction of inventory levels and also increase the profitability of the company.

Demand and Supply Chain planning is a part of S&OP!!

Sales and Operations Planning: For Better Business Workflow

Demand planning & Supply Chain Planning are the part of it!!

If you are starting a business and you want to make it boom in the market, you must focus on the sales and operations planning(S&OP) of your company. Why? Today, lots of businesses are adopting different techniques, concepts and strategies of sales planning to their organization because you can evidently see the improvements and developments in the overall operations of the business. There may be a lot of business seminars involving case studies and meetings on sales and operations planning but this is never enough. Sales and Operations Planning is a lot more complicated than you think. There are lots of procedures to go through that is really time-consuming. Unless you are able to implement it properly on your business, all the efforts and hard work will pay-off for you and your business.

So, what does these sales and operations planning do for your business? The sales and operations planning mainly focus on balancing the supply and demand aspect of your business. And, this can actually last for a period of 1-2 years. If successful, you can already start on sales and operations planning to further raise your business' level, capability and functionality in the field of operations. Another would be that sales and operations planning aims to fulfill all sales expectations of the business. This will result to a more persistent work from your employees and more effort on their work to meet the plans and goals. Thus, this will serve then as a tool for motivation for your business.

Sales and operations planning also ensure the usage of all the available resources on the maximum level. This will result to a smoother work-flow on the supplies, demands and deliveries. In this way, there will be no more confusion and difficulty in making sure that all the supply will be enough for the demands. And, it also makes certain that sales profits will be a lot bigger than the costs or expenses.

And if you want to a wider and broader view on how your business' operation should be then as early as possible do your sales and operations planning. This will give you and your employees a brief and organized work or task. Then you will avoid chaos in your working space and will give you better operations.

So if you want all of these to happen and be done for your business then you should implement sales and operations planning now because you will surely benefit from it and your business will gain a lot. Maybe for you or for some business owners, it is a waste time but it is surely a business element worth spending time for. The time span in learning and implementing this to your business will surely give you more benefit. You will surely see the evidence in the operations of your business. If you don't have any idea in properly implementing sales and operations planning, there are lots of consulting companies you can approach and go near to.

Demand- Inventory-Sales and Operations Planning (S&OP)

Companies do react to change but in the absence of the right tools, their reaction might be too late and ineffective. So we are here for you with solutions for:

• Demand Planning
• Inventory Planning
• Sales and Operations Planning (s&op)
• Supply Chain Planning
• Inventory Planning (MEIO)
• Factory Planning
• Available-to-Promise
• Network Optimizer
• Supply Chain Predictive Analytics

The ability to react and change comes from  the processes that you set up, however the speed at which you react comes from the tools that you deploy. More specifically, how fast do you commit to your customers? How fast do you change your inventory position? How fast do you react to a change in demand? How fast do you ramp up a new product and phase out the old one? And finally, how fast do you know that you need to react and respond?

Supply Chain Planning

- Supply Chain Predictive Analytics -

The lag phase comes from slow planning and recognition of demand signals as well as not knowing what the company’s “capacity” for the required change is . Implicit in all this is also the ability to predict potential issues (opportunities) and be prepared to address them accordingly. The ability to predict comes from building supply chain models that can show the strong and weak areas and suggest solutions under given circumstances. Unlike execution systems (ERP, WHM, MES etc), supply chain models deal with the current situation and the expected future scenarios rather than past occurrences and simple data points (transactions) of the present. Ask us how we have helped our clients to be the fastest in their industry.

For more information, send us an email to info@adexa.com with the subject line “Fast Company."

Demand Planning | Inventory Planning| Sales and Operations Planning

Importance of using Software's in Demand Planning & Sales and Operating Planning

Demand Planning & Sales and Operating Planning software importance

The practice which is essential for the growth of your business is Demand planning. Their are some software's which are capable of managing demand & supply within the system. With the software’s like Demand Planning or Sales and Operational Planning (S&OP) or other software with such module enables businesses to gain access to the time taken for which the record is required to be available so as to make sure that goods are delivered timely to customers.

The lead time for purchase-to-stock needs which an inventory has is different. Lead time is defined as a basic measure that enables organization to know the amount of time that must be given between requests to buy items to the item delivery time. Customer demand drives the quantity requirements. It takes months for some material inventories to meet the customer’s demand, while other item inventories may take few days or weeks. The most fundamental idea of an inventory planning is map out a plan based on what the demand is going to be like in the future, and then a supply plan that will probably supply in accordance to the demand will be mapped out. Most times, companies that have very weak supply chains because of their Supply chain planning will find it difficult to produce an effective inventory plan. Such tools are designed to enable you create a demand and supply plan which is cohesive.

Users are given options to know the demand with the help of the such tools and software's. These software does this by enabling the user to glance at existing purchase orders which shows firm customer commitments, and also enables users to take a look at the sales history.When demand planning is performed, this software will show a calculated forecast on a material-by-material basis.Then, you will know if demand plan is what you can trust or what you can modify to suit your own future sales assessment.

Once an effective demand plan has been put in place, Such tools & software will enable you create a supply plan in opposition that demand.Sales orders are suggested to preferred vendors by a supply plan presently. It will give you an account of existing purchase orders that are yet to be delivered.Purchase orders can be disseminated to the suppliers on an appropriate date in other to have the items delivered. This can be done once you generate the purchase orders.

Many different tools and software are used by companies and businesses who are seeking for advanced business practices. I came to realize that demand and supply plans outside the Enterprise resource planning system will be completed by many companies and businesses.Businesses do this by ensuring that spreadsheets and other tracking tools are created. They will create sales orders manually from those offline system. With this each salesperson was able to forecast demand and a report that lined up demand in opposition to the existing purchases was produced by us. This report enabled them to know what they are required to purchase.

Using perfect tool or software aids in the reduction of errors by missing expected deliveries and existing orders. Its demand and supply planning module shares information and helps to ultimately grow your business by enabling you to make decisions quicker. It gives you a competitive edge and makes you smarter.