Aligning Inventory Planning to Drive S&OP Value

When demand and supply plans reside in different systems and at different levels of detail, supply shortfalls and surpluses become difficult to spot.

Eliminating plan gaps and assessing the impact of plan changes is even more challenging, and is often so time-consuming that information is outdated before it’s done.

Inventory planning is especially challenging in this context where network inventory forecasting is based on ever-changing demand, production, target service and inventory levels. A balanced plan requires assessment of plan gaps, exploring the impact of resolution options and ultimately providing scenarios for executive approval.

Alignment with execution systems is also critical for success and requires that both planning and operational systems are driven by the same inventory policies and parameters.