The forecasts are never right, so you need to be the best at Sales and Operations Planning (S&OP) to succeed.

S&OP (or SIOP depending on who you ask) has been around for a long time. There are several hundred definitions of S&OP out there, some a lot more complex than what is needed, but my definition is:

The processes to align production to meet changes in demand.

No matter what the sales forecast process is for your business, the one guarantee is it won’t be right. Some items you will sell less of. Some items you will sell more, and there will always be surprises along the way.

It’s nice if the forecast is somewhat close, but the most important part is how your business REACTS to changes. With the right S&OP processes and metrics in place your business WILL still achieve 98% on-time delivery.

A strong S&OP process:

  • Realigns production quickly.
  • Involves a review of capacity for constraints or excesses.
  • Connects all the way through the supply chain.
  • Flows into a clear-cut master production schedule.
  • Allows the operations team to execute with confidence.

 

If your business is struggling to meet customer requirements or is unable to keep up with changes in demand, don’t give up.  Precise Process can help you perfect the processes and metrics needed to be world class in S&OP. Send me a message to get started.

derek@preciseprocess.co

(860) 359-1986

The mission of Precise Process is: “Helping US based manufacturers compete on service, efficiency and expertise”