An area of particular strength is our Sales and Operations Planning (S&OP) improvement work. In a unique approach, we help our clients discover how to apply demand pull principles to the S&OP process. The principles include:
- Simplification -- by mapping the relationship between Value Spaces and specific supply network resources and products
- Value Driven -- Each Value Space's essential deliverables are defined by client professionals or through a value space design process.
- Pull Logic -- traditional MRP logic must be eliminated and new rate based logic applied
- Market Performance Metrics -- performance metrics which measure delivery of the Value Space's essential deliverables must be defined within a performance management system which gives line managers critical analytics at their finger tips.
- Complexity Enablement -- the Demand Economy we now face in the USA requires a higher level of product and service complexity to be enabled by the formal process. SKU rationalization will take on a new meaning guided by customer value analysis.
The Sales and Operations Planning process must include high level balancing of Demand expectations with service and capacity as well as new processes as described on the Exhibit.
For additional information:
CPG Company - Case study on sales and operations planning
Demand Management - Article on demand management processes
We are working with Salient to provide a new sales and operations planning tool which will be rate based and readily implemented; www.salient.com
Rate Based Planning Clinic - See the presentation for our clinic on rate based planning, a new approach to sales and operations planning
New techniques in sales and operations planning to implement DDSN will be presented at conferences in New Oreleans and Amsterdam
