Sales, Inventory & Operations Planning
Sales, Inventory & Operations Planning (SIOP)
Implementation Engineers partners with clients to execute supply chain enhancements, including Sales & Operations Planning (S&OP) and Sales, Inventory, and Operations Planning (SIOP). The Sales, Inventory, and Operations Planning (SIOP) process is a cross-functional business management process designed to align an organization's demand (sales forecasts) with its supply chain (production, inventory, and operations). It's a subset or enhancement of the broader Sales and Operations Planning (S&OP) framework, with a greater emphasis on inventory optimization. When working with clients to stand up or improve these processes, we look at several key elements, including: sales forecasting and demand planning as the first input of the process, inventory planning to ensure there are sufficient stocks to meet customer demand without overstocking, operations planning to ensure production capabilities can meet the forecasted demand, and the overall supply chain processes to ensure good linkages and processes between procurement, production and logistics. Ultimately, by partnering with Implementation Engineers to improve S&OP and SIOP, our clients are able to better manage supply and demand, and drive greater operational efficiency, customer satisfaction, and cost control through collaborative planning across multiple departments.
$6.2M P&L impact from total project
97% On Time Delivery
IX® in Action
Our client, based in North America, manufactured fruit purees and preserves for use in yogurts and baked goods. Our client struggled with production planning and had frequent customer redirects causing production delays and material shortages. While the client had several production lines, the majority were not able to run on most shifts due to scheduling and labor challenges. IE partnered with our client to implement SIOP enhancements. Activities during IX® included:
- Developed a formal proactive management review and communication of the basic business processes impacting delivery, cost and cash flow
- Defined and built processes for supply planning and demand planning and implemented metrics to track compliance to the processes
- Conducted weekly Harmonization Planning Meetings and monthly Executive Review Sessions
- Developed Standard Operating Procedures, Terms of Reference, Action Logs and Decision Logs for SIOP meetings
- Trained stakeholders on SIOP processes and implemented measures and controls for sustainability
