According to the head of the Drucker school’s supply chain program, SIOP (sales, inventory and operations planning) is a hot topic with executives and supply chain leaders. I’ve found that our 4 EXCEL proprietary SIOP process has gained HUGE benefits for clients, and so I concur! However, SIOP is NOT a supply chain project; the significant growth, profit, margin, cash and service benefits come to those who treat it as an organization-wide strategic initiative.
Although the supply chain and operations resources typically coordinate the SIOP process as their skills align best with the majority of the processes, the reason for its success is that it is an organizational priority. The two areas of sales, inventory and operations planning focus include:
- Aligning demand with supply
- Aligning the functions related to or impacted by demand and supply on the same page
Thus, the reason it cannot be successful as a supply chain resource project should be apparent. The participants include the following:
- Resources related to demand – sales, marketing, customer service, R&D, new product development, customers, etc.
- Resources related to supply – manufacturing operations, outside processing production processes, planning, procurement, logistics, quality, suppliers, etc.
- Resources impacted by demand and supply – those interested in profit, cash flow, inventory levels, customer service, etc., such as Finance, executives, Boards, etc.
Who else is there? I cannot think of any! Now, imagine the challenge in aligning them on the same page with one plan – the “secret sauce” to SIOP success. If you are interested in learning more about partnering with us to use our proven method (4 EXCEL) for driving results, contact us.
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