Today’s markets are becoming turbulent and supply chains require even more effective planning to perform at the level required. Not only is it very difficult to improve forecast accuracy as market volatility is on the rise, but also supply planning is suffering from demand uncertainty, making it more difficult to achieve optimal inventory levels and cost targets. Multi-functional collaboration, e.g. sales, procurement as well as operations, and the support of executive management are becoming critical for ensuring an efficient S&OP process. Detailed preparation and diligent execution are crucial.
A holistic approach
Internal and external collaboration are needed to ensure market know-how. An ideal set of tools and their configuration are the basis to obtain the most suitable plans for demand and supply. For this, a systematical procedure in harmonization with your planning horizon has to be established. Only with a holistic approach it is possible to achieve the right combination of these elements that make the process successful.
- Improved forecast accuracy due to close collaboration between functions
- Optimal supply plans with minimal operating budgets
- Minimized inventory costs and improved service levels
- Enhanced capability to forecast the profit & loss and cash flow
- Aligned key functions toward reacting to market events