Organizational Culture as a Fundamental Pillar for S&OP Implementation
1. Introduction to S&OP Sales and Operations Planning (S&OP) is a tactical and strategic administrative process that has become an essential tool for modern companies. Its main objective is to connect strategy with execution, creating a bridge between long-term plans and daily operations. S&OP is a multifunctional, collaborative, and supportive process that operates in monthly […]
My learnings from implementing demand-driven planning models
This post is a very personal summary of the lessons learned from implementations during my 20 years as an employee and these 8 as an entrepreneur. As an employee in charge of the operational and planning areas, I hated the consultants who arrived as redeemers to organizations, making promises of magical solutions. That is why, […]
The Importance of Having an Efficient Portfolio
For years, companies romanticized innovation as an engine for growth and differentiation, misinterpreting the concept and assuming that by launching more and more products, the company would grow its sales in the same proportion. Those of us who come from operations, on the other hand, feel that with the launch of a new product, the […]
Is Retail Slowing Down?
Today we are sharing two articles related to planning in Retail. Both show how retailers in Europe and the USA are increasing their inventories for various reasons. I will summarize the main points and some recommendations. https://www.wsj.com/articles/inventory-pileup-uneasy-shoppers-put-retailers-in-jeopardy-11661690106 – This article tells us how retailers in the United States are projecting to close the year with […]
Six Recommendations for the Adaptive Leader
We share these 6 recommendations for leaders in the VUCA world (Volatile, Uncertain, Complex, and Ambiguous). They are taken from this Harvard Business Review article – https://lnkd.in/e8iFH3Bk What strategies does the article recommend? (with some additions of my own) 1. Be comfortable with not knowing. In a variable, changing environment with new knowledge being generated […]
How to reduce stockouts and optimize inventory using the DDMRP methodology in retail environments
The title phrase seems utopian. How do we reduce stockouts and at the same time optimize inventories? How can this be achieved? First, let’s analyze the probable causes that lead us to have these shortages and excess inventories in a retail environment. These are some of the probable causes that mean that in the end, […]
What is Demand Planning?
Demand Planning is the process within a business that has the responsibility to plan and influence the Demand in Volume and Value of the Products / Services of the business in a time horizon. Oliver Wight 2020 Demand planning is more than a forecast; it is a vital component to validate medium and long-term plans. […]
What are the Roles in DDMRP?
DDMRP is more than just generating replenishment orders; it is a methodology that considers the positioning of decoupling points, the correct sizing to protect the flow, and visible and collaborative planning and execution. In many implementations, people are comfortable only with the generation of orders from a software. In many cases, they continue with the […]
S&OP – Sales and Operations Planning
History, current status, and next steps Let’s start by defining what S&OP is – APICS Dictionary, 13th edition A process for developing tactical plans that provide management with the ability to strategically direct their businesses to achieve a sustained competitive advantage through the integration of customer-focused marketing plans for new and existing products with supply […]
What is DDMRP – Demand Driven MRP?
DDMRP is a method for modeling, planning, and managing supply chains to protect and promote the flow of relevant information and materials. DDMRP is the management and supply order generation engine of a demand-driven operating model (DDOM). The Demand Driven operating model is the generation of replenishment orders, production scheduling, and the execution model, using […]
