RAHUL RAVI
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Importance of SOP in Supply Chain & Logistics

2018-09-01

 

What is S&OP?

Sales & Operations Planning (S&OP) is the process by which we bring together all the plans for the business (Customers, Sales, Marketing, Development, Manufacturing, Sourcing, and Financial) into one integrated set of tactical plans. S&OP gives management the ability to direct its business to achieve a sustainable competitive advantage. The overall objective of S&OP is to arrive at a business “Game Plan” to help manage and allocate critical resources to meet the needs of the customer at the lowest cost. 

Implementation of S&OP should be undertaken in phases. Most businesses start with a pilot program in one business unit in one country, Globalization has occurred at such a rapid pace that many firms today find themselves thinking “globally” but acting “locally.” It is only natural that priority has been given to establishing a presence in new and emerging markets. However, it is time for firms to begin the journey to global planning and execution in supply chain.

The first step in implementing Global S&OP is to understand the configuration of the firm’s demand and supply planning, and execution processes.

Global S&OP is applicable regardless of existing constraints within regions. However, it must be customized based on that situation. Obviously, one goal is to eliminate self-imposed constraints that make global planning more difficult.

The overall objective of the Global S&OP process is to maximize operating results within the service level and inventory constraints.

o       Demand planning is performed on a regional basis as regional marketing and sales are closest to their market and are held accountable for meeting the sales plan.

o       The regional demand plans are consolidated into a global demand plan, which is compared against the global business plan. Global marketing can and does make adjustments to the overall demand plan.

o       The Global Master Production Scheduler develops the supply plan and assigns products and volumes to individual plants using the optimizer tool. The results are shared with the regions.

o       A Global S&OP meeting is conducted to review and discuss the supply plan. Open issues or individual regional concerns are addressed in this meeting.

o       The Regional Master Production Schedulers develop more detailed plans for plants in their region. They are constrained by decisions made in the Executive S&OP meeting.

o       The Region conducts an S&OP meeting to finalize and communicate the plan.

The size of the business, the complexity of the network, replenishment lead times, etc., are used to determine whether the Global S&OP plan should be revised quarterly or monthly. Exceptions that arise during execution of the plan are resolved through the coordination of the Global Master Production Scheduler. Pre-established policies and procedures are used to control changes during the plan period and ensure focus is on total economics. The Global Master Production Scheduler routinely monitors performance to plan.

 

Key inputs in development of the plan include:

o       Total Delivered Cost (Source-to-Customer)

o       Current Prices

o       Inventory Constraints

o       Production Capacities

Emphasis in measuring performance must be total profitability and the plan must result in higher utilization of assets and lower costs.

The primary purpose of the Global S&OP process is again to ensure maximum profitability within service and inventory constraints. However, the supply plan is maintained at the regional level and no Global Master Scheduler exists. The aggregate S&OP Plan is reviewed by the Global S&OP team, which consists of marketing, supply chain, and finance personnel from each region as well as the global leader and members of their staff.

To enable the global approach to planning, the organization must change, which requires vision and plan for change management. Responsibility for the process, the scorecard, and the technology become global. Regions participate in the selection of metrics, the design of the process, the development of the policies and procedures, etc. Also, both the demand planning and supply planning processes involve interaction between regional and global personnel. However, the ownership for the global processes is with the global personnel. 

The business must develop and use policies and procedures to ensure overall goals are the focus, and make every effort to avoid disruptions due to differences in opinions.

Keys to Successful Global S&OP

The primary difference in performance management is that metrics need to focus on global performance as appropriate, and must be cross-functional in nature. Some typical metrics used in Global S&OP include:

o       Total Operating Result, or Gross Margin vs. Plan

o       Total System Inventory vs. Plan

o       Actual vs. Planned Demand by Product Group

o       Actual vs. Planned Production by Product Group

o       Overall Forecast Accuracy

There are several challenges that are inherent when establishing a global planning process. These include:

o       Timely and accurate communications across regions and functions. To make certain this happens, adopt easy-to-use tools that can be accessed globally. Develop a meeting schedule on a rolling 12-month basis to ensure participation. Use a planning calendar and measure adherence to agreed-upon dates.

o       Align goals and objectives across regions and functions to ensure participants are not punished for shifting their focus on overall performance.

o       Design and implement global IT support with the goal of minimizing overall cost while providing key participants the data views and data aggregations they need.

o       Change management needs. This may require educating the Global S&OP participants in the process, and provide implementation and facilitation support for the first few months of the process.

At first, participants will not be focused on the global good. This takes time. The leadership will need to set the example. Clear roles and responsibilities must be developed, and documented procedures are needed to help remove emotion from the process. Performance against the business scorecard metrics will be the ultimate measure of success.

Benefits of Global S&OP

There are many benefits gained from implementing a Global S&OP process. Of course, with that, the firm improves overall financial performance. The typical benefits include:

o       Shift in focus on value added from local or regional to global.

o       Increased visibility across the entire supply chain enabling better business decisions and quicker reaction to issues.

o       Improved communications and teamwork across regions and functions leading to more balanced trade-offs in decisions resulting in improved bottom line.

The regions and countries of a global firm will not optimize plans from a global perspective in the absence of a global process. Instead, they will maximize benefits to their region or country without regard for the overall business results. Leveraging S&OP by shifting the focus to the global bottom line will yield significant financial, customer, and internal benefits.

 

Reference: Alan Millikan CPF, Industrial Engineer & MBA

 

 

Rahul Ravi - CISCP,PMP

Rahul Ravi ,
 Software Engineer ,
Certified International Supply Chain Professional ,
 Logistics Professional ,
 Software Consultant ,
 Logistics Consultant ,
 Supply Chain Professional ,
 Rahul Logistics in Dubai ,
 Rahul Ravi Storage in Dubai ,
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As a Software Engineer, I have a passion to make less complex and easiest UI design for the complex business strategies. So I always work at the hardest part and attack the core of the problem to develop the easiest solution with good interface. After all it ensures excitement and great learning experience to me in the process of meeting the target or task, and it also provides immense satisfaction to the customer or those who expect from me, which is my true reward.

But one also encounters number of challenges- in the process of completing each project, like, we may not be able to focus on the same projects due to multiple projects at hand and the deadlines to meet, multiple languages, operations, peoples, new developments, networking, arrangements, information, advises by others etc which demand immediate attention. But we soon find our way back to the core issue at hand, while providing the solution to each issue based on priority, one by one. So the problem is only till the detection of the issue, because soon after that you can carry on as separate stack memory, analyze the issue, understand the cause, devise appropriate solution and finally solve it. This is my tactical approach. Though many may not understand my approach but the end result will be the answer for that.

The main programming languages used for the projects are php, C#, Java 2SEm Databases oracle and mysql. For the small scale industries we believe in providing cost effective and best solution and thus we do not promote the use of big expensive database structure in their operations. Also we provide pocket friendly alternative like the open sources which are available for faster operation such as Linux, PHP MYSQL.

Rahul Ravi ,
 Software Engineer ,
Certified International Supply Chain Professional ,
 Logistics Professional ,
 Software Consultant ,
 Logistics Consultant ,
 Supply Chain Professional ,
 Rahul Logistics in Dubai ,
 Rahul Ravi Storage in Dubai ,
 Rahul Ravi Copacking in Dubai ,

 Logistics in Dubai ,
 Storage in Dubai ,
perfume and cosmetic storage in Dubai ,
perfume and cosmetic storage in Jabel ali Freezone ,
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As a Certified International Supply Chain & Logistics Professional, I have to be loyal to the customers, and my Work. We need to realize that each and every item we use in our real life is part of the bigger term supply chain management. What is the supply chain process?

Supply chain management & Managing the supply chain is an ability to plan and control all the process across, from manufacturing to end to end customer satisfaction. In case of any situation that acts as a problem in the completion of the process, then it is managed in the most accurate and logical manner that would ensure benefit to both the customer and the company. Me and My team handle the whole process in the utmost professional way, to counter attack each and every problem faced by this industry, and provide the best solution possible. The ultimate aim is to get as much experience as possible and keep moving ahead with conviction and positivity.

Though we encounter some customers or managers who are apprehensive about adopting any change in the generic process that they have been following from centuries, yet they surrender to imbibe the advanced strategies after realizing its merits and de-merits in a developing professional environment.Ultimately my knowledge and experience helps me to offer the best business solution to any esteemed organization that I am associated with.

Rahul Ravi ,
 Software Engineer ,
Certified International Supply Chain Professional ,
 Logistics Professional ,
 Software Consultant ,
 Logistics Consultant ,
 Supply Chain Professional ,
 Rahul Logistics in Dubai ,
 Rahul Ravi Storage in Dubai ,
 Rahul Ravi Copacking in Dubai ,
 Logistics in Dubai ,
 Storage in Dubai ,
perfume and cosmetic storage in Dubai ,
perfume and cosmetic storage in Jabel ali Freezone ,
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Since the international Business has always been my field of interest, I decided to pursue my MBA in E-business. I chose this as my subject because it can be directly correlated to my core subject. Moreover, it provides a wider perspective to the world of technology that I am related to, and gives me an in depth understanding of the modern day concept of business development.

We are aware of the growing importance of e-commerce as the main ordering system for various popular and upcoming brands. Even this is correlated and can be further developed in the supply chain process in the most optimum way. The merits of using e-commerce for supply-chain, can reduce the time consumed for ordering, packing and data integrity across the continents. At a single click you can control the entire process.

Over the years, with my array of experiences I have come to realize that instead of using expensive ERP's, the use of small series of tools is absolutely user friendly, while the end effect will be the same as an ERP. The process would involve accurate result and reports which one can make ready with the use of different format, colors at any time. The main aim is to develop cost effective tools for our customers as a perfect alternative to the ERP.
Thus I as a Business consultant can provide the best solution to all chronic issues because of my knowledge and skills which have bloomed over a period of time through my array of experience and my never ending desire to acquire new knowledge.

About Me

Rahul Ravi ,
 Software Engineer ,
Certified International Supply Chain Professional ,
 Logistics Professional ,
 Software Consultant ,
 Logistics Consultant ,
 Supply Chain Professional ,
 Rahul Logistics in Dubai ,
 Rahul Ravi Storage in Dubai ,
 Rahul Ravi Copacking in Dubai ,
 Logistics in Dubai ,
 Storage in Dubai ,
perfume and cosmetic storage in Dubai ,
perfume and cosmetic storage in Jabel ali Freezone ,
perfume and cosmetic storage in Jafza ,
cold storage warehouse in dubai ,
3pl servcies in dubai ,
3pl service in jebel ali freezoe ,
co-packing dubai ,
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chilled warehouse in dubai ,
third party logistic service dubai ,
co-packing in jebel ali freezone ,
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Rahul Ravi from God's own Country, INDIA.

I have completed my education from Kerala. My basic schooling was from St Jude LP School, Mukhathala, Kollam , Kerala while I completed my High Schools from St Jude HSS School, Mukhathala, kollam , Kerala. I had the most amazing childhood, school and college life, as I was blessed with some amazing teachers and excellent friends across the school. It is really heartwarming to know that my teachers still remember me as the most hardworking student with an excellent social skills. My school has groomed me to be a responsible citizen of the world and helped me imbibe a healthy competitive spirit, which is one of the core factors to win in this fast paced developing world. I am proud to be a student of St.Jude. The people who are aware of the reputation of the school, value our presence. I am very thankful to all my Teachers and my parents.

Rahul Ravi ,
 Software Engineer ,
Certified International Supply Chain Professional ,
 Logistics Professional ,
 Software Consultant ,
 Logistics Consultant ,
 Supply Chain Professional ,
 Rahul Logistics in Dubai ,
 Rahul Ravi Storage in Dubai ,
 Rahul Ravi Copacking in Dubai ,
 Logistics in Dubai ,
 Storage in Dubai ,
perfume and cosmetic storage in Dubai ,
perfume and cosmetic storage in Jabel ali Freezone ,
perfume and cosmetic storage in Jafza ,
cold storage warehouse in dubai ,
3pl servcies in dubai ,
3pl service in jebel ali freezoe ,
co-packing dubai ,
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I am graduate in Bachelor of Engineering in Computer Science from Visvesvarayya Technological University. It was the culminating point to know life and its struggles, to realize what I want from life. During my graduation years itself I had started working as an intern with some established firms, to gain practical knowledge and to enhance my skills. I was persistent in ensuring that I become an Engineer. Engineering has been the turning point in my life, as it helped me know what I want form life and I started working hard to achieve my dreams. I started with a small business of developing Websites in PHP. I helped me be a go- getter and made me realize how important is it to stay focused to withstand the challenges in the market, and also to stay competitive to exist in the market. I still hold on to the same virtue of working hard and to be persistent and reaching my endeavors.

Rahul Ravi ,
                             Software Engineer ,
                            Certified International Supply Chain Professional ,
                             Logistics Professional ,
                             Software Consultant ,
                             Logistics Consultant ,
                             Supply Chain Professional ,
                             Rahul Logistics in Dubai ,
                             Rahul Ravi Storage in Dubai ,
                             Rahul Ravi Copacking in Dubai ,
                             Logistics in Dubai ,
                             Storage in Dubai ,
                            perfume and cosmetic storage in Dubai ,
                            perfume and cosmetic storage in Jabel ali Freezone ,
                            perfume and cosmetic storage in Jafza ,
                            cold storage warehouse in dubai ,
                            3pl servcies in dubai ,
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Thus after my graduation, realizing my potential I pursued my MBA in E-Business under Annamalai University. It broadened my understanding of my subject or skill further. It enabled me to understand the new business strategies with new technologies, how to overcome the issues when we face any technical issues in business industries. The survival time to solve the issue is very less in supply chain industries and in day to day business. It is important to know how we can manage these problems for smooth operations. For the basic business methodology it was necessary that I complete my MBA to climb up the ladder of knowledge and understand the existing competitive world from a microscopic view.

Rahul Ravi ,
             Software Engineer ,
            Certified International Supply Chain Professional ,
             Logistics Professional ,
             Software Consultant ,
             Logistics Consultant ,
             Supply Chain Professional ,
             Rahul Logistics in Dubai ,
             Rahul Ravi Storage in Dubai ,
             Rahul Ravi Copacking in Dubai ,
             Logistics in Dubai ,
             Storage in Dubai ,
            perfume and cosmetic storage in Dubai ,
            perfume and cosmetic storage in Jabel ali Freezone ,
            perfume and cosmetic storage in Jafza ,
            cold storage warehouse in dubai ,
            3pl servcies in dubai ,
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            co-packing dubai ,
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Rahul Ravi ,
             Software Engineer ,
            Certified International Supply Chain Professional ,
             Logistics Professional ,
             Software Consultant ,
             Logistics Consultant ,
             Supply Chain Professional ,
             Rahul Logistics in Dubai ,
             Rahul Ravi Storage in Dubai ,
             Rahul Ravi Copacking in Dubai ,
             Logistics in Dubai ,
             Storage in Dubai ,
            perfume and cosmetic storage in Dubai ,
            perfume and cosmetic storage in Jabel ali Freezone ,
            perfume and cosmetic storage in Jafza ,
            cold storage warehouse in dubai ,
            3pl servcies in dubai ,
            3pl service in jebel ali freezoe ,
            co-packing dubai ,
            promotional packing service dubai ,
            chilled warehouse in dubai ,
            third party logistic service dubai ,
            co-packing in jebel ali freezone ,
            cold storage in jebel ali freezone ,
            cold storage in dubai ,
            cold storage for rent in dubai ,
            cold storage dubai ,
            logistics company in jafza ,
            warehousing in dubai ,
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            logistics company in jebel ali freezone ,
            warehouses in dubai ,
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From the previous work experience I have gained vast knowledge in complex Logistics Operation situation, with hardful decision making. As it was a wonderful experience I gained to make more The Supply Chain and Logistics Operation has made a big diversion in my career to become more professional with my technical skills and enthusiastic mind to gain the knowledge in Logitics Operation. I have made different application to support the operation as much as user friendly and easy methods to less complicate.

To Enhance my knowledge in Supply Chain and Logistics Operation I have done the course Certified International Supply Chain Professional from International Purchasing and Supply Chain Management Institue, USA Rahul Ravi ,
                             Software Engineer ,
                            Certified International Supply Chain Professional ,
                             Logistics Professional ,
                             Software Consultant ,
                             Logistics Consultant ,
                             Supply Chain Professional ,
                             Rahul Logistics in Dubai ,
                             Rahul Ravi Storage in Dubai ,
                             Rahul Ravi Copacking in Dubai ,
                             Logistics in Dubai ,
                             Storage in Dubai ,
                            perfume and cosmetic storage in Dubai ,
                            perfume and cosmetic storage in Jabel ali Freezone ,
                            perfume and cosmetic storage in Jafza ,
                            cold storage warehouse in dubai ,
                            3pl servcies in dubai ,
                            3pl service in jebel ali freezoe ,
                            co-packing dubai ,
                            promotional packing service dubai ,
                            chilled warehouse in dubai ,
                            third party logistic service dubai ,
                            co-packing in jebel ali freezone ,
                            cold storage in jebel ali freezone ,
                            cold storage in dubai ,
                            cold storage for rent in dubai ,
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                            logistics company in jafza ,
                            warehousing in dubai ,
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                            It was amazing experience in Dubai to learn such a crucial operation management with tactical and professional approach to the complex situations which I faced in different operation. With the use of CISCP I could make better level of logistics operation in a professional manner to my orgainization and to end customer.

To enhance with the knlowedge of IT Projects along with Logistics Management, I have to be in a part of future business research and analysis. The strong skills to be useful with preofessional manner to support the operation I had taken some trainings with project handling methods in PMP Course from Project Management Institute. The strong trainings and experience from PMP was amazable fact. Which could help me a lot in the project handling and operations.

Rahul Ravi ,
             Software Engineer ,
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