Transforming Transportation

Reinventing the Supply Chain Sales & Operations Planning Process

Written by Tony Nichols | Dec 9, 2020 1:45:00 PM

Reinventing the Supply Chain Sales and Operations Planning Process

THE CHALLENGES

The supply chain function has been hit with an alarming level of disruption lately.  The global pandemic, tariff wars, and changing sourcing strategies have created new challenges, and it is now clear to see what needs to change in order to continue moving and growing your business.  One thing that needs to change? Your supply chain sales and operations planning process.

A historical planning and forecasting process within your supply chain will no longer be able to help you adequately forecast demand & manufacturing output to meet consumer and customer expectations. 

THE MOVE TO CONSUMPTION-BASED SALES & OPERATIONS PLANNING

Real-time supply chain data and insights will be key moving forward for your overall planning process to be effective. For example, real-time data & insights can improve visibility and help you meet demand spikes.

With the possibility of these new buying habits and sourcing strategies becoming permanent in the future, more companies will need to move to a Consumption-Based Sales and Operations Planning cycle.  A recent study by the Institute for Supply Management found that manufacturing plants in North America were operating at 74% of capacity in the 2nd quarter.  COVID-19 and other disruptions are resetting the system that has operated for decades and companies will need to reinvent their supply chains as economies bounce back.

THE BENEFITS OF CONSUMPTION-BASED PLANNING

There are several benefits to having a strong and structured Consumption-Based Sales and Operations Planning program including:

  • Improved collaboration between functions
  • Proactive decision making for supply and demand activities
  • Improved inventory management and visibility
  • Improved customer and consumer experience
  • Ability to effectively meet spikes and lows in demand
  • Accurate and actionable data that leads to improved KPIs
  • Optimization of resources and reduction of waste

IN CONCLUSION

With so many factors changing around the supply chain function, now is the time to make sure your overall planning processes are updated to meet new consumer and customer buying habits, and that you have the ability to meet changing demand patterns in this time of disruption globally.  As you transform your historical Sales and Operations Planning process to a more Consumption-Based Sales and Operations Planning process, you will become more lean and agile, and thus, better able to meet consumer and customer expectations and grow your business.

At CarrierDirect, we understand the substantial task at hand with changing a Supply Chain Sales & Operations Planning Process. This is why we developed a toolkit to help companies make this important transition. We see consumption-based planning and operational models as a key to maintaining a healthy and scalable supply chain. 

The new CarrierDirect Supply Chain Sales & Operations Planning Toolkit helps companies unify sales, executive, financial, and operational perspectives and drive collaboration across the enterprise. This is just one of our four new offerings & capabilities designed for supply chain.

We work with our clients to identify KPIs and performance management programs to improve the overall planning and inventory management process. This is needed to reduce risks during the COVID-19 pandemic and other potential disruptions.

Want to learn more about how the supply chain function is evolving during these challenging times? Download our Supply Chain Data Insights White Paper. Our supply chain experts Tony Nichols and Shanna Greathouse dig into the growing importance of data transparency and how it can drive growth and profit.

Are you ready to take your next step toward a more reliable supply chain?

Request your free consultation from CarrierDirect here.