Larry Schwenk, global supply-chain breakthrough leader with Dow Chemical Co, guides us through the company's application of sales and operations planning to its logistics demand-planning process. A finalist in the Supply Chain Innovation of the Year competition.
Analyst Insight: Sales and operations planning (S&OP) still remains a challenge for many organizations. In Aberdeen Group's recent report, S&OP: A Critical Process for Superior Performance, we identified that more than half of the companies (56 percent) that are not best-in-class do not yet have a formalized S&OP process in place. The question becomes "Why and what are the differences between best-in-class and all others?" The answer can be found by examining differences between them for process and organizational capabilities. - Bryan Ball, Vice President and Principal Analyst, Aberdeen Supply Chain practice
Larry Lapide, research affiliate at MIT's Center for Transportation and Logistics, employs a maritime metaphor to dramatize the pressing need for companies to implement an effective sales and operations planning (S&OP) process.
So often our discussions about supply chain center on arcane details and limited stakes. Production delayed? Get ready to pay more for expedited transportation. Lost a supplier? Might mean empty shelves at the supermarket. Life goes on.
An integrated point-of-sale IT strategy will help CPG firms gain valuable insight into consumption data that can pave the way for a positive impact in a number of important areas. They include new/improved product formulation, inventory optimization, supply chain optimization, trade promotion management and optimization, and demand/forecast optimization. Furthermore, an integrated POS strategy can create a win-win for all stakeholders involved, including the retail partners.