Why invest in Supply Chain Planning?
The Gartner top 25 APAC Supply Chain survey recommend companies have a mature Sales & Operational Planning process and use Advanced Planning Systems to manage profitable trade-offs across the supply chain. Put simply, investing in sound Supply Chain Planning technology, processes and organisation is a proven recipe to profitability.
This gives rise to the questions: How to improve the Supply Chain Planning function at your business? What should you focus on first: the people, process or technology?
The "big consultancy firms" and other academics argue the focus should be on the process first, but this often ignores the holistic nature of APS tools. This process results in the delivery of a set of traditional or ERP focused processes (i.e. MPS to RCCP to DRP). In addition, this approach may ignore the lack of required data or appropriately skilled operators to run complex APS. The key for companies is actually to implement a solution that manages the balance between the focus areas. The aim should be to lift all 3 pillars at an equal rate, as oppose to over achieving on 1 or even 2 of the pillars. Companies need to invest in technology that is able to chance with them whilst implementing appropiate business processes, complemented by appropiate operator training.
Engaging an experienced partner from ASAP Consulting who has taken other companies through this process will make a difference in getting the balance right.
Introducing an S&OP process or implementing new SCP technology does not need to be a cumbersome or painful process. ASAP Consulting recommends to start with the basics: coordinate a cross section of key players and meet regularly armed with insightful, scenario based, information based on a single set of numbers. This process can transform a business. Get the balance right and companies can maturing their S&OP process and effortlessly make a direct improvement to the bottom line.
Check out some of the planning puzzles that I have solved and places where I contributed to "getting the balance right".
Book your SCP health today and get on board ASAP!