Sales & Operations Planning (S&OP) has been with the business world since the 1980’s. Despite this maturity there are still a lot of myths and misconceptions about what the process actually is. This is a brief article aimed to tell you exactly what S&OP is, and what it isn’t…
There was a time, not too long ago, when Dell dominated the market for personal computers (PCs). It was a time that saw the company spawn a whole new industry of direct buying. Dell focused on a strategy that bypassed distribution channels by avoiding retailers and wholesalers altogether.
Just in Time (JIT) supply chains represent the ideal warehouse management approach, one that is best defined by low inventory levels, a low cost of financing, and most importantly, an adherence to a doctrine of only having what’s required to meet customer demand. However, does that mean that any company, regardless of its size, its industry, its market, its customers’ demand, and or its product offering, can run this type of supply chain? No, it doesn’t.
Does your company frequently encounter high and low periods of customer demand, ones where that demand suddenly, and quite unexpectedly, rises and then declines gradually, or worse, disappears overnight? One minute you’re struggling to keep up with the opportunities in front of you, and the next you’re left with an excess amount of product on your shelves.
Reducing your company’s inventory costs is never as simple as just cutting back on inventory levels. It’s ultimately about buying exactly what you need when you need and having the right amount of inventory to cover customer demand. When faced with this situation, companies invariably turn to calculating their economic order quantity (EOQ).
As a small and medium-sized enterprise (SME), and or entrepreneur, you’re well aware of how much time, effort and money it takes to win new business. Unfortunately, there’s always the threat of larger competitors coming in and stealing what you’ve worked so hard to close. So, should you resign yourself to this fate, or should you instead use a strategy to ensure that you not only keep your customers, but that you never lose another sale to a larger competitor again?