Thanks to its agile approach, S&OP meetings can now take place on a valid data basis, even without firmly defined S&OP cycles. This allows a real-time monitoring of all changes and their effects on on-time delivery, value creation and budget at different hierarchical levels.
Smart management along the planning instances
Unlike many other S&OP software solutions, ORSOFT follows a holistic end-to-end approach of supply chain management. Within the planning process, the software considers interdependencies between sales & operations planning and advanced planning & scheduling and integrates them into the modelling.
Demand planning serves the purpose of preparation, coordination and rolling update of sales planning data. The statistical forecasts generated from the data include a variety of parameters, such as one-shot sales events, demand fluctuations and new market trends. This data can be additionally enriched with information from the product life cycles as well as external economic or demographic influences and price changes. The result of Demand Planning is a demand plan.
The task of supply planning is to plan trade-offs within customer service (such as demand coverage or delivery reliability) and against inventory and operating costs. Based on simulated capacity and resource/workspace planning, conflicts and constraints can be quickly identified, resolved, prioritised and integrated into customer communication. Supply planning leads to inventory projection over the entire time horizon. Initially, processes for inventory optimisation are also part of supply planning.
Inventory optimization aims to manage conflicts between a high service level and the lowest possible inventory costs for relevant materials. The process may result in increased customer satisfaction/loyalty and turnover in the mid-term. A reduction in stock also increases liquidity, thus improving the return on assets (ROA) and the overall competitive position.
The consensus/master plan (also called the rough plan) is the final instance of the S&OP process. The capacity information planned consistently across all levels and reconciled in real time is qualified for transfer to the detailed planning process and finalised at management level. In addition to this, the consensus plan delivers valuable information for controlling sales processes and for customer management.