Anyone following the news is aware of the now steady drumbeat (finally!) of good news on the economic front. Exports are up, Europe is doing better, home sales are up, and, of course, the stock market is up. But wait, what follows next? Oil prices are up. Soon, commodities prices will start rising. Then transportation costs will rise.
So what does this mean for manufacturers and how does it relate to Sales and Operations Planning (S&OP)?? Clearly, after many quarters of focus on efficient operations and lean inventory management, the focus will once again shift to managing supply chain costs. Transportation costs, materials costs, and eventually labor costs will eventually rise to prominence.
Are you prepared?
Effective planning is essential. How will your operations change if there is another oil spike? What will you do if a port is closed down by a strike? How do transportation economics impact lead times? These are just a few of the questions that must be understood by planners.
Ensuring that your S&OP Plan incorporates scenarios that mitigate these concerns is fast becoming essential. Ensuring that your team is aware and focused is even more essential. Today’s S&OP solutions such as Compass Express by Steelwedge offer the perfect antidote for these kind of challenges.
