Originally posted in ASI - Adhesives & Sealants Industry - June, 2023 Innovation allows companies to achieve higher levels of growth, profitability, employee engagement, and success. According to the Global Innovation Index (GII), Switzerland ranks first in the world with the US edging out Sweden for the second position. [...]
If you want to serve your key customers successfully (with high on-time-in-full (OTIF), short lead times, and proactive service) so that you can take advantage of the opportunities coming down the pike while addressing the hard realities of the current business environment (potential recessions, high interest rates, and less access to capital), you MUST balance sales, operations and inventory.
I am thrilled to announce that I have published a book on SIOP (Sales Inventory Operations Planning), also known as S&OP and IBP (Integrated Business Planning). Why is SIOP VITAL to Success? I think our introduction says it well, and so I'm going to give you a preview. As [...]
Manufacturing has struggled to produce what customers want on-time without spending a fortune and tying up excess cash unnecessarily in the wrong, "just-in-case" inventory. It is a tough environment spiraling out of control with supply chain chaos.
Since the pandemic, it has been a constant battle to ensure material availability, let alone to proactively manage cost and service. Even the most proactive and successful clients have experienced brief shortages of key materials and extended lead-times. The rest have been plagued with these issues.
"SIOP" stands for Sales, Inventory, Operations Planning (SIOP). Depending on the industry or organization, you may also hear it referred to as “S&OP” or Sales and Operations Planning. Sometimes, it is even referred to as “IBP” or Integrated Business Planning. Typically, they mean the same thing. The most important words to emphasize are planning and alignment.
We are in a new era with more opportunity to grow than ever before. COVID is largely in the rear-view mirror, and the strong companies are getting stronger. Consumers have returned to the scene and are robust purchasers of products, homes and services. Are you ready to grow and scale? Have you taken control of your end-to-end supply chain so that you can take advantage of the opportunities?
Lisa Anderson and the team at LMA Consulting working with Nellson to upgrade the planning, purchasing/ MRP, supply chain and S&OP/ SIOP processes. The result was improved service levels with on time in full (OTIF) from the low 90's to the high 90's; reduced inventory levels; reduced obsolete inventory, improved billbacks on expired material (from around 0% to nearly 100%); and gained more value from the ERP system.
In working with clients across multiple industries including industrial equipment, food and beverage, building and construction products and healthcare products, there is no doubt that clients using a SIOP (sales, inventory and operations planning) and integrated business planning process are pulling away from the competition.
Lisa Anderson is featured in a client video success story on SIOP (Sales, Inventory and Operations Planning). SIOP provided better alignment on sales quotation and order flow to improve delivery performance for customers, increased visibility for planning resources, improved operating performance and a better view at upcoming demand to plan for surges and scale successfully.
