Posts tagged as 'Sales and operations planning'

Sales and Operations Planning (S&OP) in the NOW, is happening NOW!

MattBenson
  • by Matt Benson
  • Published

A woman reviews an S&OP related documentAs I was presenting at the European Supply Chain and Logistics Summit last week, the overriding memory I’ll take away was the number of people that were nodding and pointing at the screen when I talked about how unplanned supply chain events that occur need to be addressed immediately and that they cannot wait to be included as part of a new S&OP cycle.

Traditionally, an S&OP cycle is a process geared towards taking a medium/long-term forecast, balancing with aggregate level resources and generating questions/answers to establish preventative action. Usually it’s seen as a monthly process that follows this cycle:

  1. Collate actual data and perform performance analysis
  2. Start demand planning cycle
  3. Establish supply status
  4. Perform balancing and establish variances
  5. Agree on corrective action and present solutions
  6. Executive decision and commit to the business

However, this process makes several broad assumptions:

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Kinaxis Positioned in the Leaders Quadrant of Gartner’s Magic Quadrant for Sales and Operations Planning Systems of Differentiation

LoriSmith
  • by Lori Smith
  • Published

Gartner's Magic Quadrant for Sales and Operations Planning Systems of Differentiation

Gartner recently published their Magic Quadrant for Sales and Operations Planning Systems of Differentiation and we take great pride in the fact that Kinaxis has been placed in the Leaders quadrant and is situated highest on the Ability to Execute axis.

Gartner defines a sales and operations planning (S&OP) System of Differentiation (SOD) as a software solution that supports a Stage 4 or higher-maturity S&OP process. According to the report, Leaders demonstrate “Leaders have a strong vision for their S&OP SOD capabilities. They recognize the role they will need to play in enabling the move toward multienterprise horizontal planning allied with vertical integration that links strategy to operations and execution. They are focused on developing analytics to support end-to-end profitability trade-offs and configurable supply chain design and configuration capability.”1

In this regard, we believe we truly out-execute other vendors in the space. Our proficiency in consistently delivering a quality solution and service to our customers is foundational to our value.

Given the configurability of RapidResponse®, it is an ideal solution to take companies through the various stages of S&OP maturity. Our goal is to both enable quick initial success and help our customers advance their S&OP processes from early stages through to Stage 4 (and beyond) over time by leveraging the full capabilities of our solution.

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Forecast Accuracy: Keep Your Demand Management Process Honest

AlexaCheater

forecast accuracy represented by a dart boardOur partner Celestica recently published the following article,Are you keeping your demand management process honest? The author, Eric C. Lange, Director of Demand Planning and S&OP Services at Celestica, examines forecast accuracy and the main components of a demand management measurement tool and process. We’ve outlined his recommendations below so you can help improve your forecast accuracy, leading to improved business operations and ultimately greater success.

Reporting Forecast Accuracy

Even with an established Sales and Operations Planning (S&OP) process, if you’re neglecting forecast accuracy measurement and reporting you’re missing a critical piece of the puzzle for demand management success. Yes, it’s often a difficult, time-consuming and complex endeavor, but not doing it limits the prospects for success for the entire process.

While calculating forecast accuracy is important, it’s not enough. You also need measurement and accuracy reports to determine the effectiveness of the entire demand management process.

There are three main components of a demand management measurement tool and process:

  • Decide the method to calculate forecast accuracy
  • Determine how to calculate and eliminate any forecast bias in the process
  • Manage all necessary data to evaluate the effectiveness of the demand management process

Once these components are in place, it’s time to move on to determining added value in the forecast.

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Nimble Storage Inc. – End-to-End Supply Chain Visibility: Dream or Reality? SupplyChainBrain & Kinaxis Video Series

MelissaClow
  • by Melissa Clow
  • Published

SupplyChainBrain attended our annual Kinexions user conference, and while there, they completed a number of video interviews with customers, analysts, and Kinaxis executives. And, we’d like to share them!

Sagar Nadgouda, service logistics manager with Nimble Storage Inc., offers his view on how far companies have come in crafting supply chains that are truly transparent and demand-driven.

One top challenge that companies are facing today is the need to innovate the customer experience, with the help of new information technology, says Nadgouda. A second is the requirement for flexibility in responding to actual demand patterns, with the goal of “making our supply chains more predictive and proactive, instead of reactive.”

Watch now: End-to-End Supply Chain Visibility: Dream or Reality?

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Qualcomm: What’s Wrong With Traditional S&OP? – SupplyChainBrain & Kinaxis Video Series

MelissaClow
  • by Melissa Clow
  • Published

SupplyChainBrain attended our annual Kinexions user conference, and while there, they completed a number of video interviews with customers, analysts, and Kinaxis executives. And, we’d like to share them!

In this interview, hear Kathyleen Beveridge, director of sales operations with Qualcomm discuss “What’s Wrong With Traditional S&OP?” According to Beveridge, the sales and operations planning (S&OP) process brings great value to an organization, but companies need to take a fresh approach in order to ensure more efficient planning cycles.

Sales and operations planning involves a number of sequential stops. Mistakes anywhere along the way can lead to inefficient planning, says Beveridge. A new approach is needed that allows companies to become more agile in a difficult business climate.

Under the traditional approach to S&OP, it can take upwards of two weeks to compile data. “By the time you get in front of the management team, that data has already changed,” Beveridge says. Qualcomm has adapted S&OP to a weekly cycle, under which it has more frequent discussions with key decision makers. They focus on the state of the company’s supply and demand balance, with an eye toward making “immediate course changes” if necessary. The company also conducts monthly S&OP meetings that focus on longer-range issues.

Watch now: What’s Wrong With Traditional S&OP?

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On-demand Webcast: Continuous S&OP for Life Sciences – Breaking the Mold

MelissaClow
  • by Melissa Clow
  • Published

Today’s Friday post is to let you know that we have posted the on-demand version of last week’s webcast on “Continuous S&OP for Life Sciences – Breaking the Mold” (registration required). In this webcast, learn about the unique S&OP challenges for Life Sciences companies, the importance of changing S&OP mindsets, and how to break the S&OP mold from both a process and technology perspective.

Webcast: Continuous S&OP for Life Sciences - Breaking the Mold

 

You can also view the slides that we’ve posted to slideshare…

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Your supply chain is costing you money – Reason #6 Not effectively managing inventory.

JohnWesterveld

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. You can find the previous posts here:

Not effectively managing inventory.

Reason #6 Not effectively managing inventory

I had to throw out some carrots yesterday. I hate throwing food out but there was nothing to be done for it…all I can say is that I’m glad the carrots were in a bag….and it didn’t leak. That got me thinking about why I was throwing away what had been perfectly good food;

  • I had forecasted needing a certain amount, but the customers (my family) didn’t take what I’d forecasted.
  • I thought we would want carrots, but everyone wanted broccoli…which I didn’t have.
  • I lost track of how many carrots we had and ended up buying more when we really didn’t need any.
  • Spoilage can happen. In the case of my carrots, there was a limited shelf life – but they could have been dropped or stolen (hey, it could happen!).

That was carrots. All in all, it cost me a couple of dollars. Unfortunately, all the same kinds of things can happen to your supply chain inventory. Except that your inventory costs millions of dollars.

Those of you that manage inventories know how hard it can be to get the quantities just right. If you maintain too little inventory, you have stockouts, line stoppages and unhappy customers. If you have excess inventory, it ties up working capital and is at risk of damage and obsolescence. The worst possible world is when you have too much of something you don’t need, and too little of something you do need.

So what strategies are out there to maintain inventories at the “right” level? There are many but let’s focus on some of the high runners;

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Your supply chain is costing you money – Reason #5 Not having a supply chain risk management process

JohnWesterveld

supply chain risk management

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. You can find the previous posts here:

Reason #5: Not having a supply chain risk management process

In today’s society, unless you are rich enough that you can afford to replace your possessions, pay for your health care, and cover your liabilities, you have insurance (unless you are poor enough that you can’t afford the premiums). Insurance is a form of risk mitigation. Insurance protects us against theft, fire, accidents, and health emergencies and if this were to happen, it can provide for our family when we pass. Yet, a surprising number of companies (while they have traditional insurance) do not have a supply chain risk management “insurance” aka a supply chain risk management process. To put it another way, they have insurance to protect them if someone trips on their property and sues, but don’t have a risk management process to mitigate against their top supplier going out of business. The insurance covers what could be a million dollar risk, supply chain risk management protects against what could be a MULTI-BILLION dollar risk.

Supply chain risk can be broken out into multiple different types;

  • Geographic: This includes natural disasters and political unrest. These are the types of issues that impact supply for an entire region. We saw this type of issue over the past several years with the Japan earthquake / Tsunami in and with the Thailand floods. Political issues can also have a significant impact on supply. Conflicts, government policy changes, regulatory changes and coups can mean that supply is suddenly turned off or that a market is no longer available.
  • Supplier issues: This includes quality issues, delivery reliability, financial stability, reputation, strikes, and pricing changes. We talked about many of these issues in the first post of this series – “Offshoring without getting the full picture”. The key point here is that in today’s connected supply chain, your suppliers are an extension of your own business. If your supplier fails financially, it will impact your business. If your supplier goes on strike or can’t deliver for some other reason, it will impact your business. If your supplier has had a shaky human rights record, your business’s reputation can get tarnished. If your supplier decides that you need to pay more or global currency exchange rates drive up the cost of a component (and you have no alternatives ready to go) your margins can be significantly impacted.
  • Customer Demand: Interestingly, this is often ignored when people think about supply chain risk however, it can be one of the biggest factors. If your demand decreases, you have excess inventory or idle capacity. If your demand disappears completely you are out of business. If your demand increases significantly, your supply chain can be overwhelmed and delivery becomes an issue.

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