“The Purpose of the S&OP Process”
Lean is about continuous improvement, elimination of waste and sustainability by establishing process’ and standards. The S&OP process is a “lean tool” in the form of a process that will help reduce and control raw material & finished goods inventory, reduce or eliminate unnecessary overtime, control lead time when business is increasing or decreasing and manage our capacity better without turning away sales orders. All of these factors, if not controlled or go unchecked will erode your bottom line.
I was asked join my current company by the President & CEO as the Director of Supply Chain, Logistics and Lean Office. In this role my challenge was to help change the culture to a more professionally managed organization. In doing so I have introduced several objectives that will help an organization achieve these goals and allow for profitable growth. The S&OP process is not a small side project it is a vital part of the business because it involves every aspect of your business, from Sales, Finance, HR, Manufacturing, Supply and Service and will chart the course of direction for any growing organization.
Without direct support from the executive leadership the S&OP process will not be successful. It requires full participation at all levels if it is treated as a onetime exercise or people feel they have the option to not contribute or get involved, it will not be successful.
Lean is about continuous improvement, elimination of waste and sustainability by establishing process’ and standards. The S&OP process is a “lean tool” in the form of a process that will help reduce and control raw material & finished goods inventory, reduce or eliminate unnecessary overtime, control lead time when business is increasing or decreasing and manage our capacity better without turning away sales orders. All of these factors, if not controlled or go unchecked will erode your bottom line.
I was asked join my current company by the President & CEO as the Director of Supply Chain, Logistics and Lean Office. In this role my challenge was to help change the culture to a more professionally managed organization. In doing so I have introduced several objectives that will help an organization achieve these goals and allow for profitable growth. The S&OP process is not a small side project it is a vital part of the business because it involves every aspect of your business, from Sales, Finance, HR, Manufacturing, Supply and Service and will chart the course of direction for any growing organization.
Without direct support from the executive leadership the S&OP process will not be successful. It requires full participation at all levels if it is treated as a onetime exercise or people feel they have the option to not contribute or get involved, it will not be successful.
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