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Reacting to Uncertainty with Temporary ‘Quick Response’ Planning
This column deals with the role of the Sales and Operations Planning (S&OP) process when there are uncertainties in a supply chain, the likes of which emerge under extreme situations like the COVID-19 pandemic. I discuss how S&OP is designed to deal with risk, but not extreme volatility like we are experiencing now. In such cases, we need a temporary ‘Quick Response’ operational planning process that sits alongside the regular, formalized process of S&OP. I explain how such a tactical framework allows us to react quicker to demand and supply shocks in a way that S&OP cannot.