How can the S&OP process help improve Supply Chain Agility?


How can the S&OP process help improve Supply Chain Agility?

Supply chain agility has become a key capability in addressing customer and market uncertainty—a hallmark of today’s volatile global economy.  Unfortunately many organisations often mistakenly define agility as simply shorter lead and cycle times—believing that if the supply chain can react faster, it can react to demand volatility.  While reducing the time it takes to get goods to customers is desirable, in reality, lead time reduction alone will not enable a company to more effectively balance customer responsiveness and efficiency, nor capitalize on emerging opportunities more quickly than competitors. What is needed is a planning re-think.

The Sales & Operations Planning (S&OP) process enables a company to more accurately balance demand, resource and contribution, but the net output is usually a “firm schedule”. An agile organisation recognises that demand will change within the S&OP cycle and uses the process to discuss the potential variability of mix and demand to ensure that the planning system provides the flexibility to meet short term volatility.

This requires much more attention to the S&OP data preparation with an increased level of system input and more structured forecast data.

In this session, delegates will learn:

  • How the S&OP process contributes to business agility
  • Critical success factors for an agile S&OP process.
  • How Operations can adjust to an agile schedule.

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