Taking the Worthwhile Trip from S&OP to SIOP

The complexity of today’s supply chains is increasing at a fast pace driven by the expansion into emerging markets, ever-broadening product lines, and continued out– sourcing. At the same time, senior staffs are mandating maximum service level performance at minimal cost. To accomplish it, supply chain teams have to improve coordination including timely communication both within and outside the enterprise. Is this a balancing act beyond the capability of your company? Even seasoned supply chain managers have asked, or been asked, that question. In reality, many businesses are balancing cost, service level, and complexity better than before. The past decade has seen the broad adoption of, and reliance upon, the discipline of Sales and Operations Planning (S&OP). S&OP has established itself as a practical, effective method for 34 Copyright © 2012 Journal of Business Forecasting | All Rights Reserved | Fall 2012 bringing supply chain stakeholders together to develop an optimum plan for action. For many companies in a wide range of industries, monthly S&OP meetings bring together sales, marketing, materials/procurement, manufacturing, transportation, and finance professionals ...