Supply Chain performance measures define the activities involved in meeting end-customer requirements, essential inventory, and on-time and in-full delivery in a responsive manner. Supply Chain performance measures can be functional indicators and end-to-end supply chain indicators. A supply chain is called efficient when it is well-organised and ensures perfect delivery of goods and services from…
Month: June 2020
Reconciliation in Sales and Operations Planning
Sales and Operations Planning (S&OP) is a methodology that provides a framework for organisations to regularly plan and review their demand, supply and inventory levels. It helps to improve productivity and customer satisfaction. Meaning of reconciliation The word ‘reconciliation’ literally means ‘the process of making consistence or compatible’. In accounting, it means comparing two accounts…
What is Inventory Management?
Inventory Management refers to a process that deals with supply chain management, inventory control and demand forecasting. It is used for efficiently managing the regular flow of units into and out of a standing inventory. It is all about knowing what organisations have, where it’s stocked and how much they will need. Instruments of Inventory…
Decision Phases in Supply Chain Management (SCM)
Supply Chain Management (SCM) is a management practice that governs the movement of goods and services inside or outside the organisation. Effective SCM needs various decisions regarding the flow of information, products, and finances. SCM includes all methods that convert raw materials into finished goods, it comprises the designing, planning, executing, controlling and monitoring of…
Supply Planning in Sales & Operations Planning
What is Supply Planning? Supply Planning is one of the most crucial steps in Sales & Operations Planning (S&OP) and supply chain management. It aims at achieving a plan that efficiently fulfils the demand for any product or service. Procurement, manufacturing, warehousing, distribution and logistics are the constituent parts of supply planning. Supply and demand…
Integrated Business Planning (IBP) and Sales & Operations Planning (S&OP)
The journey of business planning from ‘production planning’ to ‘Integrated Business Planning (IBP)’ involved multiple changes in methodologies, processes and decision-making frameworks. Sales and Operations Planning (S&OP) is one of the intermediate stages in this journey, while a collaborative IBP is a final stage (at least till now). IBP and S&OP are neither exactly like…
Demand Planning in Sales and Operations Planning
Demand planning (DP) in Sales and Operations Planning (S&OP) is the process of analysing previous trends and forecasting the demand for goods or services in the near future, it helps in producing and delivering goods or services more efficiently to the satisfaction of customers. DP and S&OP help in planning day to day functions that…