Sales and operations planning (S&OP) helps you reduce waste and increase efficiency.
A well-planned and well-managed supply chain can save your company thousands of dollars a year. Those are dollars you may not even notice leaking out through hidden costs found in waste, rework, double handling, and quality claims.
Companies with the most efficient supply chains employ a process called sales and operations planning (S&OP), says Greg Lovensheimer, vice president of operations at Millcraft. S&OP represents a “fundamental shift in how companies do business,” he says, as it requires a coordinated effort from executive leadership teams and a shift from historical-based planning to forecasting 24 months into the future.
Tough? Yes. But, Lovensheimer argues, the effort is worth it. Here he highlights three ways S&OP can increase efficiency—and save you money—in your supply chain.
S&OP is one of the best ways to drive out waste and inefficiency from your supply chain. And it puts your company in a position to take advantage of changing business conditions.
By Laurie Hileman