EXPERT INSIGHT – The Business Value of Sales, Inventory & Operations Planning

In this Expert Insight, we discuss the positive impact improved Sales, Inventory & Operations Planning (SIOP) processes can have on a business, and how SIOP provides a competitive advantage.  Specifically, the real business value of SIOP, common symptoms of a defective planning process, and critical success factors needed for SIOP to succeed.  Whether you’re a CEO, VP of Operations, or Director of Procurement and Sourcing, this article will help you frame your thoughts on SIOP and provide valuable insights as you consider improving your processes.

The overall goal of SIOP is to connect the sales side of the business (generating product demand) to the supply side of the business (fulfilling that demand) so that they are continually synchronized.

This planning process enables the sales side to develop a realistic, achievable forecast by knowing what the supply side is capable of producing and in what time frame.  Likewise, the supply side knows what sales is trying to achieve and enables them to plan and align their resources to support the anticipated demand.  If achieved, this coordination will in turn facilitate excellent service and proactive communications – internally among departments, and externally with both customers and suppliers.

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