Sales & Operations Planning

Sales & Operations Planning

Sales and Operations Planning (S&OP), also known as Integrated Business Planning (IBP), is a decision-making process which aligns daily operations and short-term sales, production, inventory, product and financial plans with longer-term business strategies.

Deciding what product to buy and when to buy is difficult and has a major impact on customer satisfaction, sales revenue, cash flow and storage requirements. Businesses are under increasing pressure to satisfy customer orders, and quite often the ability to do this well determines their success.

Sales, marketing, product, procurement, finance and supply chain teams have a different area of focus when it comes to creating demand for, and facilitating the supply of products to their customers. Balancing these competing priorities to form an agreed plan cannot be achieved without a considered set of structured processes and supporting systems.


Services

As experienced supply chain consultants, Prological can assist your business by:

  • Reviewing existing planning processes, systems and organisational structures to identify opportunities for inventory improvement
  • Designing an optimal and sustainable planning process based on the scale of the business, number of SKUs, sales channels and number and location of supply points
  • Determining appropriate safety stock levels based on vendor lead times, forecast and lead time variability, working capital and storage constraints 
  • Defining a forecasting hierarchy to best review and build a demand plan
  • Supporting the selection of suitable systems to support Forecasting and Demand Management, Supply Planning (SP), Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP)
  • Implementing the designed planning process and selected systems
  • Providing ongoing support with embedded resources

Results

 Our Clients typically enjoy:

  • Reduction in inventory levels by 15-40%
  • Improved Delivered ln Full, On Time (DIFOT) by 10-30%
  • Reduced slow moving and obsolete (SLOB) stock 
  • Optimised organisational structures and supply chain roles aligned to tasks 
  • Visibility of future issues relating to inventory health and warehouse capacity
  • Collaborative engagement across the all departments and levels of the business


Delivering Results

Prological provides unbiased advice providing our clients with customised and sustainable, best-practice solutions.

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