Supply Chain Planning
Scott Sheldon is an action-oriented supply chain consulting firm that drives results to a company’s bottom line by challenging current state paradigms, ensuring fundamentals, applying leading practices and technologies, and focusing on the right priorities. Aligning supply and demand principals and practices will deliver a competitive advantage
Supply Chain Planning Overview
While many companies have achieved great supply chain execution capabilities, a tremendous opportunity exists within supply chain planning. By improving forecast accuracy, managing capacity constraints, reducing lead times, and optimizing inventory companies can achieve incredible financial improvements. Many of our customers are coupling new or improved sales and operations planning (S&OP) practices with leading technologies to rapidly plan and manage inbound supply chain operations. In addition, our approach to supply chain planning includes a conscious focus on reducing supply chain risk and complexity – thus reducing overall costs.
“If you don’t know where you are going, you’ll end up someplace else”
— Yogi Berra
“Great planning enables great execution”
— Scott Spyker, Founder, Scott Sheldon, LLC
Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste.
Sales and operations planning (S&OP) is a process where S&OP team members attend re-occurring meetings to develop short-term and long-term operational and financial plans. These plans are developed based on a review of the previous periods actual performance as well as future-state demand, supply constraints, and financial objectives. The key goals of S&OP are improved communications, organizational buy-in, alignment to business goals, and agreement on key metrics and measures. Companies that have an S&OP “rhythm” can obtain a number of benefits such as greater alignment of supply and demand, overall inventory reductions, improved promotional planning and product lifecycle management processes, and increased customer fill rates.
Demand planning is the supply chain process of utilizing customer forecasts, experience, and industry behavior to estimate demand for products at various points in the supply chain. Effective demand planning can improve the accuracy of revenue forecasts, align inventory levels with demand fluctuations, and enhance profitability for a particular channel or product. Businesses that implement effective demand planning processes with leading technologies can see improvements such as a 5% point improvement in gross margin and 24% gain in inventory turns.
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. Capacity planning can grouped into several classifications ranging from strategic (rough cut) to mid and short term horizons. Strategic planning is typically used for future requirements and budgeting of capital intensive resource like plant, machinery, and labor and is measured in years. Short-term planning considers the impacts of calendars, equipment availability, inventory levels, open orders, etc to develop an overall capacity plan to best meet current demand.