Tag Archive: margins

The Value of Demand Planning

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In supply chain circles there are a lot of exciting concepts to discuss and debate such as: lean, master scheduling, theory of constraints, and many more; however, we have found that our most successful clients start with the customer!
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Involve Your Supply Chain for SIOP Success

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The best SIOP (Sales, Inventory & Operations Planning) processes that deliver significant returns on investment involve the extended supply chain. Since SIOP is about how to align demand with supply – and align all the process owners and executives on one page, it has far reaching implications beyond any one project, person or result. I find the most successful SIOP processes deliver the optimal combination of: Business growth backed by operational readiness Improved customer service levels Accelerated cash flow Increased margins Thus, it is a worth-while endeavor for any business as not only a way to stay competitive but it…
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Collaborate for Project Success

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Collaboration has come into vogue. In my experience working with clients ranging in size from $4 million to multi-billion dollar enterprises across a multitude of industries, spanning building products to aerospace to consumer products, the more collaboration is valued, the better the company has performed over the long-term. Certainly, project results are directly tied to collaboration as the vast majority of projects are cross-functional and cross-company in nature. Collaboration will drive bottom line business results. If you look at collaboration as a way to combine 1+1 = 99, you’ll achieve dramatic improvements and happier employees and supply chain partners. For…
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SIOP/Integrated Business Planning

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SIOP (sales, inventory, & operations planning) taken to the best practice degree is often associated with integrated business planning. In some circles, they are seen as interchangeable. In others, it is seen as the “next step” for SIOP. It is nomenclature to me as I see fully leveraging SIOP as common sense.  Substantial results will follow. For example, several of my clients have achieved one or several of the following with SIOP/Integrated Business Planning: 1) successfully supported dramatic growth; 2) improved service levels; 3) slashed lead times; 4) improved margins; 5) accelerated cash flow; and 6) increased productivity. Why not use SIOP…
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SIOP Metrics: 5 Key Baseline Measurements

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Which metrics are most crucial for SIOP (sometimes referred to as S&OP or sales and operations planning)?  The simple answer is that it is those metrics most vital to running your business. SIOP aligns not only demand with supply but it also aligns the various business units and functional areas on one plan.  Therefore, there are standard metrics which are key to SIOP including: 1. Sales revenues – certainly one of the key elements of SIOP is to forecast demand. 2. Inventory turns – how quickly you are turning your inventory will have a direct impact on cash flow 3.…
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