This document discusses the benefits of implementing dynamic sales and operations planning (S&OP). Dynamic S&OP leverages data analysis and collaboration to improve forecasting accuracy and supply chain visibility. It helps companies respond better to volatile market conditions. Key benefits of dynamic S&OP include improved product availability, higher supplier fill rates, reduced inventory obsolescence, increased sales and profits, and enhanced collaboration across the supply chain. The document advocates using data mining of point of sale and other data to analyze customer buying patterns and integrate these insights into the S&OP process for more accurate demand forecasting.
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Leveraging Supply Chain Productivity with Dynamic S&OP
1. Leveraging Supply Chain Productivity with Dynamic S&OP Prof. John Paul Managing Director iCognitive Manufacturing Supply Chain Officer Summit 2011 - Shanghai
2. Agenda Why Dynamic S&OP? Benefits of Dynamic S&OP Dynamic S&OP for Manufacturing 2
4. Why dynamic S&OP?Dynamic S&OP – The response to several business challenges Volatile business environment calls for more excellent operational efficiency and effectiveness. Internal collaboration is often not sufficient to face today’s highly competitive market place. Companies’ data containing valuable information are often not analyzed. Companies able to identify these information have firsthand opportunities. 4
16. 13 Implementing dynamic S&OP Dynamic S&OP - A combination of processes, technologies and data
17. Data mining is the process of discovering meaningful new correlations, patterns and trends by sifting through large amounts of data stored in repositories, using pattern recognition technologies as well as statistical and mathematical techniques. 14
18. Implementing Dynamic S&OPForecast Accuracy through Data Mining Point of Sales Data Data Analysis (by region, product category, sub-category, time slot…) Identification of correlations, patterns, trends Analysis of consumer buying behaviors to make operational decisions 15
19. Implementing Dynamic S&OPData Mining integration into the S&OP process Analysis of consumer buying behaviors to make operational decisions 16
23. Improved product availability Higher supplier fill rate Reduced obsolescence Increase forecast accuracy and sales 360° Supply chain Visibility End to End Enhanced collaboration and better teamwork 20 Dynamic S&OP Benefits Higher customer service, profits and growth
24. Dynamic S&OP provides deep analysis and forecast to respond to a volatile environment and leverage supply chain productivity 21
25. Full presentation including case study is available on: http://www.icognitive.com/index.php?option=com_phocadownload&view=category&id=6%3A&download=102%3Adynamic-s-op-msco&Itemid=64&lang=en iCognitive Downloads: http://alturl.com/878ek 22
26. iCognitive, an expert in supply chain innovation BENCHMARKING CONSULTING RESEARCH IN SUPPLY CHAIN TRAINING TECHNOLOGY 23
27. Thank you 谢谢 For more information please contact us at info@icognitive.com or +65 6325 2810
Hinweis der Redaktion
S&OP serves 2 purposes:Provides the link between the strategic and business plans through the detailed planning and execution systems in the company.Provides a regulator for all the other plans, including the setting of Master Plan Schedule or Global Supply Plan, Inventory investment and commitment of resources.S&OP serves only one goal and one company plan
S&OP is an “umbrella’ process that links several distinct processes:Forecast generationDemand PlanningSupply PlanningFinancial PlanningIt is more than just the Sales and Production Plan: it is part of the overall company business process, including Marketing, Warehousing and Distribution, Finance as well as Production, Supply and Procurement Planning.The S&OP cycle wheelThe monthly cycle starts with previous month realization analysis, and re-forecast of the future month, for the sales, the supply and the inventory position. S&OP process owners in their respective scope of work and responsibility must first work in parallel to allow later reconciliation
The forecasting wheelSales forecasting is a management process, not a computer programThis distinction is important because it affects so many areas across an organization
NMC has collected POS mass data from all outlets. However, these valuable data were left not analyzed. The first step of the process is to perform a data mining process that comprises:Analyzing regional, category, sub category differences and behaviors Identifying correlation, patterns, trendsAnalyzing purchase behaviorsThus help to make strategic decisions
Discover meaningful new correlations, patterns and trends using large amount of data and integrate their results or their related decisions through the S&OP processProducts and regions sometimes managed by different departments
