Demand volatility, product updates, complex industrial structures or networks and distribution channels, pressure on inventory and shortening lead times all put pressure on supply chain planning, making it increasingly difficult. This tendency towards increased complexity will only increase over time.
The quality of decision making in the Sales & Operations Planning (S&OP) process, the coherence of operational distribution, production and supply plans and excellence in execution are three pillars of supply chain planning that, when carried out correctly, result in excellent customer service and the reduction of inventory levels to the minimum required.
Companies need to adapt, questioning their planning principles to ensure they best support the business strategy, structure and professionalise teams through results-oriented transformations, equip themselves with the most effective technologies to support operational demand planning processes, flows, inventory and capacity. It is important to combine best practice by industry, a practical approach and ensure that teams are engaged and onboard with any changes envisaged.
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