SIOP for Revenue Growth & Predictability
Learn how implementing SIOP can drive revenue predictability and growth for your business with these insights from Lisa Anderson.
Learn how implementing SIOP can drive revenue predictability and growth for your business with these insights from Lisa Anderson.
Inventory has emerged as a hot topic lately. In today’s Amazon-impacted business environment, customers expect rapid, customized deliveries, the ability to change their mind anytime and easy interactions.
ore than 50% of client requests in the last several months have related to inventory. In fact, it seems to be a trending hot topic! In today's era of the Amazon Effect where customers expect more and have ZERO patience to wait yet we are in a volatile environment with tariffs and concerns about space, costs and more, more inventory is needed to grow the business yet businesses cannot afford it.
As we toured several e-commerce facilities such as UPS and Amazon, it became obvious that the sheer volume during peak season presents a huge dilemma. For example, UPS goes from 250-300 containers per night to 450 during peak season. Now that is quite a surge! Amazon has similar surges and stated facts such as 68 million orders on Cyber Monday.
In thinking about the answer to the question, "What if you sell more?", most sales people would cheer. Most accountants would add up the additional revenue and profit. And, often, the Operations resources would be glad the leaders are in a good mood. But does anyone know if we are set up to successfully handle the increased sales if they occur?
When we look back over the last 13 years of consulting with closely-held building products manufacturers to medium, private-equity backed food and beverage firms to large aerospace corporations, every single client has one goal in common – achieving scalable, profitable growth. It sounds somewhat easy but is far from simple in reality.
Do you have backup transportation built into your model? Are you considering additional transportation partners such as third-party logistics providers (3PL) and brokers? Perhaps they shouldn't be considered a last resort.
According to ISM (Institute of Supply Management), manufacturing expanded more than it has in 14 years in February - it is on fire!
Factories across the globe are showing signs of strain in keeping up with demand. China, Germany, France, Canada, the UK and the US all show that capacity might not be keeping up with supply.
SIOP guides strategic forecasting to determine the optimal horizon for planning and future-proofing your supply chain operations.