Whitepaper: GAINS Provides the Foundation Critical to Optimise SI&OP (Sales, Inventory, & Operations Planning)
The tangible success of SI&OP (Sales, Inventory, & Operations Planning) is predicated not only on the reports with which one directly interacts, but with the values on which those aggregate (e.g. ‘financial’) plan numbers are based. This foundation begins with detailed forecasts (by Item, Location, and, optionally, Channel/Customer) as well as detailed inventory plans and sourcing rules.
These fundamental values are critical to ensuring that the SI&OP plan both synchronizes properly with the aggregate plan and that the target inventory turnover and service goals are both met as expected. Without this foundation of detailed forecasts and optimised inventory policy, SI&OP merely comprises aesthetically pleasing reports where control knobs are only loosely connected to what transpires at the detailed level (i.e. ‘in the trenches’) where operational and financial performance is determined.
With that said, the process and reports with which the SI&OP team and executives interact must be effective. Also, the SI&OP culture must be instilled in the organisation. Both of these are requisite for success. At the end of this paper, we review our abilities to ably fulfill these needs. The primary focus of this paper is GAINS unique ability to provide the foundation critical to success as introduced above.
These fundamental values are critical to ensuring that the SI&OP plan both synchronizes properly with the aggregate plan and that the target inventory turnover and service goals are both met as expected. Without this foundation of detailed forecasts and optimised inventory policy, SI&OP merely comprises aesthetically pleasing reports where control knobs are only loosely connected to what transpires at the detailed level (i.e. ‘in the trenches’) where operational and financial performance is determined.
With that said, the process and reports with which the SI&OP team and executives interact must be effective. Also, the SI&OP culture must be instilled in the organisation. Both of these are requisite for success. At the end of this paper, we review our abilities to ably fulfill these needs. The primary focus of this paper is GAINS unique ability to provide the foundation critical to success as introduced above.
| gains_provides_the_foundation.pdf |