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Sales, Inventory, Operations Planning (SIOP)admin2023-06-08T14:31:08+00:00

SALES, INVENTORY, OPERATIONS PLANNING (SIOP)

WHAT IS S&OP?

“S&OP” stands for Sales and Operations Planning. Depending on the industry or
organization, you may also hear it referred to as “SIOP” or Sales, Inventory,
Operations Planning (SIOP). Sometimes, it is even referred to as “IBP” or
Integrated Business Planning. Typically, they mean the same thing.

The most important words to emphasize are planning and alignment. In S&OP, the
goal is to have Sales, Operation, R&D/ New Products & Finance, all planning
together. The mission is to align a sales plan and the associated operations
plans, to provide superior customer service and profitability.

HOW DO YOU BENEFIT FROM SIOP?

PURCHASING

Purchasing leaders will gain visibility into raw material, component,
ingredient, and outside processing requirements so that they can work with
suppliers to set up the appropriate programs and contracts to meet customer
requirements. Suppliers will have visibility to capacity and scorecards.

LOGISTICS

Logistics leaders will gain visibility into storage, warehousing, handling,
picking, packing, shipping, transportation, returns, and equipment requirements
so that they can plan accordingly. As gaps arise, service and cost options can
be analyzed to expand capacity or capabilities as needed to support customers.

FINANCE

Finance leaders will gain visibility into sales forecasts, engineering and
manufacturing plans, capital expenditure needs, purchase forecasts, staffing and
support resource requirements, logistics forecasts, and inventory projections.
Thus, they will have revenue, cost, profitability, and cash flow projections.

SALES & MARKETING

Sales and Marketing leaders will gain high levels of service for their customers
with on-time-in-full (OTIF) levels in the high 90’s, shorter lead-times, and
high ratings on customer scorecards. They also will gain improved levels of
responsiveness to customer needs and confidence in new product rollouts.

ENGINEERING

For engineer-to-order (ETO) and configure-to-order (CTO) businesses, Engineering
leaders will gain visibility into workload requirements to support drawings,
customer approvals, and bill of material designs. They will be able to plan for
the appropriate level of engineering capacity and capabilities.

MANUFACTURING

Manufacturing leaders will gain visibility into work center, machine, equipment,
tooling, maintenance, staffing, and training requirements so that they can plan
accordingly. They will also gain visibility into the master production schedule
so that they can optimize run sizes with changeovers and costs.

PURCHASING

LOGISTICS

FINANCE

SALES & MARKETING

ENGINEERING

MANUFACTURING

PreviousNext

Q&A: WHY IMPLEMENT S&OP?

Are you interested in the answers to any of these questions?

* Are you concerned about inflationary pressures?
* Are you concerned that inventory levels and obsolete inventory reserves are
increasing?
* Do you have customer profitability analysis and forecasts needed to
prioritize customers?
* Are you struggling to keep up with customer orders?
* Will your sales and operations plan support your growth and profitability
plans?
* Are Sales and Operations on the same page?

Read our Q&A on why implement SIOP.

LMA CONSULTING GROUP BY THE NUMBERS
Our clients gain significant bottom line results, ranging from enabling sales
growth to OTIF levels in the high 90%’s to millions of dollars of inventory
savings to margin improvement and cost savings. We have broad experience across
multiple industries, company sizes, geographies, and from both the industry and
consulting point-of-view. Additionally, we have the deep connections and vast
thought leadership on SIOP.

30+

Years of SIOP experience

44+

Client engagements

121+

Thought leadership publications

24+

Client countries

SIOP ACCOLADES

SIOP SUCCESS

"Lisa helped us not only dramatically increase service levels and bring our #1
customer back into the "good" zone but also lift margins, project inventory and
cash requirements and increase employee engagement with SIOP."
Liz Cruz
Supply Chain Manager, Esterline Mason

VALUE STATEMENT

"We enjoyed millions of dollars of increased cash flow due to reduced inventory
levels and improved material availability on our highly configurable,
made-to-order, short lead-time product"
Jim Cenname
President, US Aluminum

QUALITATIVE & QUANTITATIVE RESULTS

"We achieved quantitative and qualitative results within 6 months! Lisa
successfully partnered with our team to implement SIOP/MPS process. She is
responsive, prepared and ready to make progress at every juncture."
Bob Ellithorpe
General Manager Aerospace Dynamics International

CREDIBILITY AND TRUST

"LMA Consulting Group's Parizad Sethna has been able to quickly develop
credibility and trust, and given her ability and passion to identify and solve
problems, she has become the go-to person for Supply Chain questions."
Antonio Martinez
Head of Supply Chain, Nestle Nutrition USA

SIOP SUCCESS

VALUE STATEMENT

QUALITATIVE & QUANTITATIVE RESULTS

CREDIBILITY AND TRUST

CLIENT SUCCESS STORIES

We asked our clients about the results we achieved together.

Rick Moroski, Sr. VP and COO, SchenckProcess

Craig Young, Senior Director of Operation, Nellson Gallery

Kelly Ford, Aerospace Executive

Jim Cenname, President, US Aluminum

Watch More Videos

BLOG POSTS FOR SIOP

HOW SMART MANUFACTURERS ARE NAVIGATING INTEREST RATE HIKES

Interest rates have increased by a historic amount within the last year.
Increases of almost 5 points on such an aggressive timeline is already having a
significant impact on manufacturers and distributor’s ability to fund and
support their business growth.

Business & the Economy
In The News
Inventory Management
Manufacturing
SIOP / S&OP
Supplier Management
Supply Chain

CHINA’S ESCALATING WATER CRISIS

According to an article in Foreign Affairs, the per capita available water
supply around the Northern China Plain (253 cubic meters) is nearly 50% below
the UN definition of acute water supply.

I've Been Thinking
SIOP / S&OP

THE STATE OF BUSINESS, SUPPLY CHAIN AND OPPORTUNITIES

In this episode of Supply Chain Chats, Lisa Anderson talks about the state of
business, the economy, and supply chain, what it means and how to take advantage
of the opportunities that will come down the pike.She talks in detail about
inflation, recession, the impacts of interest rates and the labor force and what
the successful companies are doing differently to succeed.

Business & the Economy
ERP, Technologies, Digitization & Automation
Inflation Strategies
Innovation
Recession-Proofing Strategies
Reshoring/ Nearshoring
SIOP / S&OP
Supply Chain
Supply Chain Chats
Supply Chain Disruption
Trends/ Future Proofing

More SIOP / S&OP Blog Posts

SIOP VIDEOS & PODCASTS

More Audio and Videos

COMPLIMENTARY DISCUSSION ON SIOP READINESS

GET STARTED!

MANUFACTURING
From profitable growth to operational performance, clients gain system-wide
improvement resulting in increased business value & customer success.
MORE

SUPPLY CHAIN
Setting resilient supply chain strategies, clients benefit from industry-tested
best practices to maximize the customer experience, profitability and cash flow.
MORE

TECHNOLOGY
Architecting technology roadmaps & selecting best fit ERP & related software
(CRM, Forecasting, WMS, B2B/B2C etc.), clients improve ROI.
MORE

909.630.3943

landerson@lma-consultinggroup.com

LMA Consulting Group, Inc.
2058 N. Mills Avenue, PMB 532
Claremont, CA 91711

SERVICES

Consulting
Advisory
Speaking

BOOKS

Future-Proofing Manufacturing & Supply Chain Post COVID-19
Future-Proofing Manufacturing & Supply Chain in 2020
I've Been Thinking: Turning Everyday Interactions into Profitable Opportunities
All Rights Reserved © 2023 Copyright LMA Consulting Group, Inc. — Lisa Anderson

Keep informed on happenings, trends and tactics to improve yourself, your
business, and your company:
* Profit Through People
* I've Been Thinking
* Supply Chain Briefing

Do a friend or peer a favor and invite them to receive our newsletters

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