Consensus planning is the most crucial step in S&OP cycle because the impact of any function within the broader supply chain process working with inaccurate assumptions creates a significant risk for the downstream functions.
It has become increasingly more important to improve collaboration to between these functions for more effective consensus planning.
Demand lead organisations face a different challenge where they need align production and ordering schedule with a consensus plan with the ability to respond when there is material change or an event.
Supply planning ensures that you can supply components, and or, can manufacture the products required for the consensus demand.
Having the right inventory management system to ensure you can employ lean inventory optimisation is vital to any stock holding business”. Getting this right means better customer loyalty and lower cost to serve.
Supply chain leaders are continuously looking for ways to improve inventory management, and the role of technology and data offers significant advantages.
To support proactive decision-making the following principles are critical