Lambda supports supply chain planning activities (S&OP and S&OE) for several manufacturers and retailers globally helping them create synchronized demand and supply plans
Supply chain planning has gained increasing significance for achieving business success in recent times, primarily driven by the vulnerability of supply chains and the growing uncertainties within the business landscape. The conventional approach of supply-driven supply chain planning has yielded to concurrent planning, which provides a comprehensive perspective by merging demand and supply planning. Nevertheless, many enterprises are encountering difficulties in realizing cross-functional cooperation and making real-time decisions – a foundational aspect for prosperous supply chain planning.
A pivotal facet of this process is sales and operations planning (S&OP), alternatively referred to as integrated business planning (IBP) or SIOP. This entails devising a strategic plan (S&OP plan) that aligns supply chain planning with overarching business objectives. The S&OP procedure involves collaborative efforts between various departments, such as sales, marketing, and operations planning, to craft a concurrent business strategy that harmonizes demand and supply.
Another pivotal dimension of supply chain planning is demand planning, which revolves around predicting future product and service demands. It permits companies to optimize their production plans while ensuring they possess the requisite resources to meet customer requirements. On the supply side, supply planning involves supervising inventory levels and confirming that production schedules align with demand forecasts. Additionally, master planning, capacity planning, and distribution planning constitute further aspects of supply chain planning demanding attention. Master planning amalgamates all supply chain planning facets, facilitating the identification of bottlenecks and opportunities for enhancement. Capacity planning determines the resources required to fulfill demand predictions, enabling efficiency optimization and cost reduction. Distribution planning, on the other hand, determines the most efficient route for transporting products from production facilities to end consumers, thereby diminishing transportation expenses and guaranteeing punctual delivery. Through appropriate tools and processes, businesses can optimize their planning endeavors and elevate customer contentment.
To effectively manage these components and achieve optimal supply chain planning, companies must embrace an end-to-end real-time planning approach that encourages swift cross-functional cooperation and execution. This necessitates the utilization of supply planning software and other planning tools that provide real-time insight into supply chain operations. With these resources, companies can fine-tune their operations, circumvent stock shortages and excess inventory, and fulfill customer demands.
However, the implementation of an end-to-end real-time supply chain planning process comes with challenges that necessitate early-stage mitigation. One such challenge involves transforming supply chain management (SCM) entities by dismantling functional silos and structuring cross-functional and cross-location setups. The executive team must ensure the availability of appropriately trained personnel with suitable qualifications and appealing incentives to ensure alignment with overarching corporate goals.
It is imperative for enterprises to acknowledge the pivotal role that supply chain planning plays in tackling the challenges posed by the modern, fast-paced business environment. The conventional supply-driven approach to supply chain planning has ceded ground to concurrent planning, which furnishes a comprehensive perspective on demand and supply planning.
However, the adoption of an end-to-end real-time planning process presents hurdles that must be effectively addressed through the transformation of SCM organizations. By employing suitable tools, instituting effective processes, and empowering the right individuals, companies can achieve real-time end-to-end visibility across their supply chain, thus optimizing operations to meet customer demands and maintain competitiveness.