¡°Many companies already view forecasting as a core business function, and the modest remainder are quickly coming around to this way of thinking,¡± said Richard Bracchi, the group¡¯s managing director.
However, he added, the establishment and maintenance of a successful forecasting and planning function can present some challenging questions,
¡°Certainly choosing which from the many thousands of methods and models to use is a contentious issue, as is the decision of which technology solutions are necessary to support them,¡± said Bracchi. ¡°Issues such as these deserve careful thought and may require investment in new staff, training, consultancy or systems.¡±
He argued, though, that ¡°blind investment¡± is never the solution. Rather, said Bracchi, finding and executing the best-forecast methods requires time, effort, and an open mind.
Broadly defined, S&OP is the set of business processes and technologies that enable an enterprise to respond effectively to demand and supply variability with insight into the optimal market deployment and most profitable supply chain mix.
S&OP strategies help companies make ¡°right-timed¡± planning decisions for the best combination of products, customers, and markets to serve. The typical planning period ranges from four weeks to as long as two years. When applied correctly, S&OP has the power to enable an enterprise to achieve an immediate and significant increase in return on investment. It can have a direct impact on profitability, performance, customer satisfaction, and the product portfolio.
Bracchi said that leveraging the influence of customers and suppliers is integral to successful S&OP, allowing businesses to extend the scope of potential improvements.
¡°Converting supply and demand can also be frustrating as it depends a great deal on data from wholesalers,¡± he added.
