Tag Archive: teamwork

What are the Benefits of SIOP?

January 7th, 2014
Companies that conduct effective Sales, Inventory and Operations Planning (SIOP) are able to balance supply with demand an exceed customer expectations.

Companies that conduct effective Sales, Inventory and Operations Planning (SIOP) are able to balance supply with demand and exceed customer expectations.

Sales, Inventory and Operations Planning (SIOP) is a process that manufacturers and distributors utilize to align supply with demand.

What are the key benefits?

•      Happy customers:  Lately, I’ve seen this objective rise in importance – customers want more for less NOW. Lead times must decrease! The SIOP process can have a direct impact on on-time-delivery percentages, past due dollars and lead times.

•      Increased margins:  One of the key benefits of aligning demand with supply is that it provides the opportunity to increase production efficiencies (because you have more time to plan effectively), increase logistics efficiencies (by having more time to optimize and through customer collaboration opportunities), reduce purchase spend (with a longer forecast, there is opportunity to develop contracts and collaborate with suppliers), and increase revenues (through customer partnerships).

•      More cash: By balancing demand with supply, you have more of the right items at the right place at the right time.  Thus, inventory levels can decline without negatively impacting service levels.  Thus, cash is freed up for better investments.

•      Improved teamwork: The SIOP process has also proven extremely effective in bringing cross-functional teams together to agree on one plan.  Although it doesn’t sound difficult, I’ve worked with countless companies that have multiple plans – one for Wall Street; one for sales, yet another one for production and potentially yet one more with new product development goals.  Once everyone is working from the same sheet of music, results follow and morale improves.

•        Increased revenues:  What else could you ask for to round out the benefits?  By collaborating with customers on their demand (and often on collaborative inventory programs), you become a dependable, more valuable partner.  I’ve seen volumes increase multiple times as a result.

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What Does it Take to Have a Real Team?

August 19th, 2013

Build successful teams that are cohesive and self-improving.

It’s rare for significant results to be achieved by individuals in today’s economy; teams have substantially greater success.

What do good ones have in common?

1.   One clear purpose — Typically, a team has one purpose since it’s formed specifically for that purpose. However, is your purpose or reason for being clear? The best teams are crystal clear on where they are going and why.

2.   One objective — A foundational element of a team is that there is an overarching objective -what do you expect to accomplish? If each person has a different objective, you don’t have a team; you have a committee.

3.   One measuring system — Can one person succeed while another fails? If so, you have a committee. Instead, a true team will succeed or fail together with common metrics.

4.   Accountability — Your team should share accountability for achieving your objective. Who is responsible for which action items? The best teams are self-selecting – if someone isn’t holding up their share, it is addressed (often the person improves with peer pressure or self-selects out).

5.   Rewards — Certainly, one of the best aspects of having a team is to celebrate success and to create a feeling that you are “in it together.” Thus, it is critical to celebrate progress and success.


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