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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. Have you experienced poor S&OP planning processes?  How about excellent planning?  Comment back and share! After the director decided it was finally time for a switch, I was brought in to revamp the whole system and shift it to cloud-computing. I hate it when I want to buy something that is high in demand, and the business tells me, that they are out of stock. When companies have stock-outs it is often the result of planning failures; Forecast accuracy, inadequate supply, distribution issues. The workshops offered by Demand Planning Net are unique in the sense we actually offer practical, hands-on workshops.
Many professionals who have attended our workshops, have reported back that they were able to use the concepts in their every day activity. We will be hosting our first ever public workshop in Texas due to popular request from our Oil & Gas colleagues and planners at Oil Field Services companies. Demand Planning Net will be bringing our popular two day tutorial workshop on Demand Planning and Sales Forecasting to Dallas, Texas in February 2013.
As expected one of the metrics used by 52% of the respondents is WMAPE or volume weighted MAPE, calculated as Sum of Absolute errors divided by sum of actual demand.
Demand Planning and Forecasting Training workshop on March 12th (Mon) and 13th (Tues), 2012 – 2 Day Interactive Workshop in Manama, Bahrain at The Crowne Plaza. One of the Key steps to improving your Value chain is to measure and score-card the current state. Forecasting Blog RSSAdvanced Demand Management and CADP Certification exam Boston May 2016Are you still using Excel for Forecasting and Planning?
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The free trial also features model templates for Supporting Goals, Performance Objectives and Performance Measures. Reach out to the author: contact and available social following information is listed in the top-right of all news releases. Sales and operations planning (S&OP), sometimes known as aggregate planning, is a process where executive level management regularly meets and reviews projections for demand, supply and the resulting financial impact.
Whereas strategic planning looks at the company's plan years into the future, tactical plans look at the company's business plan over the coming year.
After a company has worked through their sales forecasts and calculated the resource requirements, the various alternate production plans should be generated. Level Production Plan: The level production plan is used where the cost of making a change in the production level is extremely expensive, while the cost of holding inventory is very low, for example in the oil industry. Chase Production Plan: The chase production plan is the opposite of the level production plan. Mixed Production Plan: The mixed production plan takes elements from both the chase and level plans, where there will be variances in production and inventory levels which will produce the best production plan.
It may be “minor” to some people, but I believe that Inventory Record Accuracy (IRA) is critical in planning and execution of plans. Logistics Planning includes transportation, warehousing, and inventory within the firm and between supply chain partners.

Logistics planning integrates overall movement demand, vehicle availability, and relevant movement cost into a common decision support system that seeks to minimize overall freight expense. Yard Management Systems (YMS) manages the visibility of avoiding “dead heads” or transportation movement without freight which is very costly to a transportation company. And of course, Enterprise Resource Planning (ERP) integrates the ENTIRE Company and all important modules of the ERP system, for planning and effective execution of plans. Today, drilling down to your Suppliers and gathering their input to your planning is becoming more critical. After the forecast is set, actual production to this S and OP forecast is reviewed to see how realistic this forecast was when it was completed.
The more Supplier involvement relative to commodities, parts and components schedules are available before the S and OP is executed, the more accurate the S and OP will become. Your comments on how you use S and OP for planning and what issues are important to you are important to us. Customize this free Strategic Plan Template to build up a strong and efficient strategic plan for your company or for a new project. A strategic plan is a road map for your business to make sure that members of organization are working towards same objective, analyzing the internal and external environment and decision making for success of an organization. Departmental alignment can only occur if the top level department executives are involved in the key decisions…because those top executives have the decision making authority.  Sales and Ops is a failure if the representative at the meeting needs to go back to their executive to get a decision. Previously, John was a product manager responsible for supply management , supply chain risk management, application interface and framework, integration management and server. Do they think that they can just talk about it and make a decision without putting it on paper? This survey was meant to compile information about their pain points, forecast error metrics they use, industry they work for, and who owns the demand planning function.
The 30-day trial membership includes full access to editable model sales plans, individual contributor supporting goals and business objectives that can be customized to support any organization. S&OP is a decision making process that makes certain that tactical plans in every business area are in line with the overall view of the company's business plan.
Tactical plans take into account overall strategies of the company, which are found in the strategic plan. Using the level production plan, the production remains constant and inventory is used to absorb the differences between the sales forecast and production.
In this production plan, the production is changed for each time interval of the plan to match the sales forecast for that interval. If you are not working with finished goods (SKUs) and materials inventory accuracy at 98-100% accuracy daily via cycle counting, all numbers are suspect even with good planning or great execution of planning. Historically, purchasing and finished goods transportation both attempted to minimize their freight cost individually. The analysis suggests ways that freight can be shifted among carriers or consolidated to achieve scale economies. Lack of accurate and comprehensive logistics and supply chain planning tools historically resulted in poor utilization of production, storage, and transportation capacity. Companies that have an effective sales and operations planning process are improving their visibility across their enterprise.
Getting your Suppliers involved in S and OP makes this planning more realistic and time sensitive. Strategic plan is just like a road map that is built and used by companies and business organizations to set priorities, focus energy and resources, strengthen operations as well as to ensure that company’s manpower and other professionals are working equally to achieve business goals. It is a very important management tool to overview the objectives of the company and planning process in order to ensure the success of company and maximize the profits. When you don’t make what you sell and don’t sell what you make you create inventory.  Lots of it.

He joined Kinaxis over 7 years ago bringing with him 16 years of manufacturing experience, including 10 years in the information technology field. With all the new systems and technologies it should be easy to plan ahead so that the supply chain practices doesn’t cost the company extra money. We are publishing the first installment of the results from this survey in this newsletter. The overall result of the Sales and Operations Planning process is that a single operating plan is created that identifies the allocation of company resources, including time, money and employees. Sales and operations planning are aimed to helping to provide companies develop and align the tactical plans developed by the various business areas. The forecast is derived from a combination of products and services that require similar resources, for example, a number of manufactured finished products. With this approach the production is always chasing the demand, hence the name chase production plan. If you plan within cumulative lead times, it will create “negative lead times” in Purchasing or unrealistic due dates for Suppliers when MRP (Material Requirements Planning) is executed. Procurement minimized the expense of raw material movements by working with suppliers and inbound carriers. It also facilitates information sharing with carriers and other service providers to enable better asset utilization. The increasingly strong focus on improved asset utilization in conjunction with improved information management and decision analysis capabilities and techniques has brought comprehensive planning systems to reality. In advance of your S and OP meeting send as much planning information to your Suppliers as you possibly can via e-mail, EDI or new software that is available to support more detailed S and OP planning. Having a strategic plan is vital to run business operations and procedures smoothly to get desired outcomes. A strategic plan can explain that how you will achieve successful, profitable business functions and grow your business in the most successful direction.
There are two approaches that are used in sales and operations planning; top-down planning and bottom-up planning.
Using top-down planning, the Sales and Operations management team can create tactical plans based on the overall forecast and divide the resources across the finished goods or SKUs: (Stock Keeping Units) in the plan.
This approach is best used for companies who either cannot hold inventory or to do so is extremely expensive, while changes in production costs very little.
It will also create negative or unrealistic lead times for manufacturing when manufacturing orders are executed for the shop floor. Logistics focused on minimizing outbound freight expense by working with customers and their transportation carriers.
A well developed strategic plan not only reveals the vision of a business or company, but also provides details and step by step guide to carry out various business activities. A well prepared strategic plan makes enable the management to set objectives and tasks to enhance the turnover of the company.
The way in which a strategic plan is developed mostly depends on the nature of the organization’s leadership or management. A strategic plan also can help to manage other financial affairs of the company in best way. The individual perspectives of transportation often result in limited economies of scale, limited information sharing, and excessive transportation expense.

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