SOP & SOE - SECRET TO SUPPLY CHAIN AGILITY

 S&OP & S&OE - SECRET TO SUPPLY CHAIN AGILITY

 

I am Gayathri Nair ,a civil engineer now pursuing MBA  I am a people's person and believe that being Human is more important than a human being .I have always been intrigued and inspired by the stories of ordinary men and women who have achieved extraordinary success by thinking out of the box .how they overcame hurdles ,  picked themselves up and proved that when the going gets tough the tough gets going has been my motivation to move  to the management scenario. 

Unpredictability is the new normal . Life has undergone a 360 degree change .upheavals in personal living standards , an economy whose dynamics keeps changing in the blink of an eye  , a market that fluctuates and adjusts constantly , undulating demand variables make market forecasts next to impossible . What is expected and what actually happens is  totally unpredictable . It is a herculean task to plan strategies and to execute them to perfection as the new normal is " unpredictability "

Earlier tried and tested practices are slowly becoming obsolete . Business heads  and corporate planners have to be constantly on their toes to field the unexpected curve balls being thrown at them continuously by the atypical conditions that the new normal has envisaged . The awareness that they are in trajectory of the curve balls will help them be better prepared to ensure that they mitigate risk , be better equipped to be resilient , to stay a notch higher up than the competitors and thereby ensure that the supply chain remains intact without any link breaking off ,thereby making sure that the customer always has a positive experience.

S&OP: Two sides of the same coin

Only when all links  of the supply chain are connected and operate in tandem in a transparent ,speed efficient and  synchronized manner manner will the supply chain environment thrive. A result oriented sales and operations planning process can expidate the above process . It's rarely in place in most enterprises is the reality. Most businesses lack clarity in strategy , zeroing in on the functions that are integral and result oriented planning .In viable S & OP strategies , the ones at the helm work incessantly to foster better alignment between functions . This synchronization between the functions is the cornerstone on which the business can advance their strategic planning  and when in tandem with the perfect sales and operations execution S&OE can fire up the entire process

Any S&OP in its crux aims to help the business reap revenue and conquer a lion's share of the market , align budgets and last but not the least minimize the cost and risk factor involved .This is both a long term goal as well a short term aim . By keeping an eye on future ,the heads work within in the existing framework to work out a balance in their business goals and aims .

Most often these S&OP protocol falls flat on their face because it's disconnected from the actual running of the business .The available data and presumptions and assumptions are often outdated and obsolete and thereby affect the viability of the critical decisions made .The collating  and transmission of information from the lower end of management tier to the top executives is often  limited and feedback channel is weak .

Any S&OP strategy to be effective the functions should not be in water tight compartments but they should have a free flowing channel of information and  feedback loop so as to ensure there are no unforeseen hiccups , to achieve your targets and most importantly deliver the best way experience to the customer

S&OE : How to integrate execution with long term goals

A viable S&OP in place doesn't necessarily ensure clarity and success .in relation to the new normal scenario ,supply chain logistics are undergoing transformations and makeovers , transitioning into global supply networks .So execution is a herculean task and can be a stumbling block which can bring a business to its knees .A watertight S&OP becomes obsolete if it is not executed in time and isn't responsive to inevitable hiccups ,trouble is just around the corner

S&OP is centered around long term organizational planning ,S&OE is steeped in immediate time frame , delving into the speed with which the supply  can adjust to the changing demand dynamics .continuous monitored adjustments allow for a a balance to be brought about in the supply chain to meet an ever evolving demand plan .  A viable ,time based S&OE is the axis on which any S&OP can revolve on effectively

Bottlenecks in integration :

Having an S&OE that aids a S&OP,is easier said than done . The main deterrent being tools .excel or similar tools are relief on by planners to create their operational plans but the downside of this is that they work with limited visibility of information about the processes at different levels of the supply chain . Only if they have access to actual information with side by side planning capabilities provide planners visibility and transparency into what to their planning will result in . An proactive S&OE can not only speed up the S&OP but also reduce the  volatility . When the two processes work in tandem business can develop more accurate insights into demand patterns ,reduce downtime and replenish inventory stock  . This shall give the businesses an edge over their competitors .
   

S&OP +S&OE; How evolution and agility can transform businesses :


In most businesses ,the planners themselves are lost and clueless on how to effectively adapt a plan that can improvise and improve supply chain logistics to meet an ever fluctuating demand dynamics .every business aims at living up to their brand value , ensure customer satisfaction and provide the best experience to the market .as the last touch down point to customers ,the supply chain can either make or break a business .  Clear perspective ,eagle vision in future market trends , and timely execution can make or mar customer relations .

So to make a business viable ,the   planners should adopt a S& OP process that breaks down silos and allows them to transition in accordance with market dynamics .A proactive S& OE in tandem with a strong S&OP ,will fire up the supply  chain .

To succeed all businesses should have a strategy that has a perfect amalgamation of S&OP and S&OE. This is what that either fires the business to higher heights or dunks it in deep waters