Sales and Operations Planning (S&OP)
Perfect Sales and Operations Planning (S&OP) by Adexa, considers the whole picture. In addition to Sales and Operation Planning (S&OP), it enables you to optimize inventory buffers across the supply chain, at every level of the supply chain, so that the delivery lead times are reduced, order fill rates are increased, and avoid capacity and materials shortages at the same time minimizing operation cost. You can set inventory levels based on your service-level commitments by customers, group of customers, SKU or product groups. Furthermore, identify imbalance and capacity bottlenecks, and use your own time-varying business rules such as sourcing across multiple plants and multiple suppliers with qualifications and postponement strategies. Multiple scenarios can be compared and financial consequences of each strategy can be seen. This process allows you to have the right product mix, right level of inventory from raw materials to finished goods and in between, as well as ensuring the desired service level at lowest cost of operation.
What makes Adexa’s Sales and Operations Planning (S&OP) solution exceptional and unique has to do with the fact that the generated plans are so accurate that they can be executed optimally without having to be revised and manipulated by the planners. Because of the fact that the shifting bottlenecks, material and capacity, are automatically recognized and intelligent algorithms are deployed to work around them, every plan is a perfect plan for execution. And, if anything goes wrong, no worries, it already has a backup based on risk recognition strategies built into the application. Lastly, but not least, Adexa’s Sales and Operations Planning (S&OP) solution performs self-evaluation and learns from its environment and therefore constantly improves itself through machine learning algorithms unique to Adexa. Same strategies are used to improve risk resiliency of the entire supply chain.
Benefits & Features
Only Adexa integrates forecasting, demand planning, inventory optimization, material and capacity planning, and supply planning into a unified, end-to-end collaborative environment. Organizations can take advantage of capacity constrained optimization, inventory optimization, collaborative demand and supply planning and underlying business-process workflows.
- Reduce lead times
- Profitably deploy inventory across the enterprise
- Synchronize material planning, capacity planning and allocation planning
- Improve service levels
- Reduce inventory management costs and obsolete inventory
- Reduce expediting costs
- Manage by/co products
- Optimize safety-stock and raw-material levels
S&OP plans are quite attractive and look great with all kinds of fancy colorful charts. However, being at such a high level, their accuracy is far from reliable. Secondly, they need to be translated to execution plans.
When you get in the car, execution begins combined with some short term planning that includes taking some short cuts and stopping for gas and coffee. At a much lower and detailed level of execution, your shock absorbers are taking all the bumps in the road in order to ensure a comfortable ride—this is completely reactive and no planning is done at this level.
Are you a Fabless enterprise? Do you have a virtual but highly complex supply chain? Do you feel wedged between big customers and faraway suppliers? If that is the case, how well are your supply chain planning systems working for you? In this paper we discuss the shortcomings of current Fabless planning systems, and how you can overcome them.
Related Case Studies
After analyzing all the available technology options, HLL chose Adexa planning suite, concluding it was the only solution capable of facilitating live customer/supplier collaboration, and integrating demand and distribution planning with production scheduling. Furthermore, Adexa delivered centralized monitoring of the supply chain across the enterprise, and “what-if” analysis to ensure the impact of change, from any source, was visible to all stakeholders and new optimized plans and schedules could be rapidly developed.
Adexa enables all internal stakeholders to work from the same plan and provides more accurate capable-to-promise (CTP) dates to customers, up-to-date requirements for subcontractors and suppliers, at the same time identifies the most profitable production scenarios for Pulse.
Learn how Adexa replaced one of the leading vendors in supply chain at IDT and changed the planning run times from over 23 hours to less than 3 hours. IDT has been successfully using a complete Sales and Operations Planning (S&OP) solutions of Adexa from Demand Planning to Supply Chain Planning and inventory optimization for over 7 years.
Before Adexa the company faced challenges regarding deliveries with tough competition from the Asian players winning market share of the memory market. Using Adexa the delivery performance went up by double digits resulting in one of the best performers in the industry and having the ability to provide real-time ATP/CTP to all its customers.