What does the H1N1 epidemic have that most Sales and Operations Planning (S&OP) processes do not have? Is this a ridiculous question? Well, the question is not as ridiculous as it might seem and the answer is simple – H1N1 has the US Center for Disease Control (CDC). The state of the N1H1 epidemic is closely monitored by the CDC using real-time dashboards, sophisticated predictive metrics, external sensors, and tailored email alerts directed at the medical profession (see below). However, few global manufacturing companies have the tools to close monitor and manage their sales and operations processes. And even fewer have the tools necessary to make the right strategic decisions when confronted by a crisis.
What tools does your company have to proactively manage during these highly volatile times? Not unlike the Center for Disease Control, the mission of Steelwedge Software is to enable companies to proactively identify and manage risk while improving strategic decision making through adoption of a fact-based Executive Sales and Operations Planning process. In normal times, the outcome of an effective S&OP process is increased asset utilization and improved operational efficiency. In extraordinary times, S&OP is even more important as it provides a framework and toolset for crisis management.
What is the roadmap to improved S&OP? Start with a crawl-walk-run approach. Adopt the basics first– establish a fact-based monthly process. Automate the demand sensing process and drive collaboration. Then, establish a system-based rough cut capacity or supply planning process. And finally, drive an effective Executive S&OP process that enables executive decision-makers to understand strategic trade-offs and proactively respond to business challenges. Once this end-to-end process is in place and fully enabled. A comprehensive set of performance metrics, predictive analytics, dashboards, and exception-based alerts can be implemented to improve corporate agility (see below).
Step back for a moment - is S&OP with its associated metrics, dashboards, alerts and warning indicators that different than what the CDC has created to manage the H1N1 epidemic?
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