From bartering to smartphone screens, the way consumers interact with purchases is constantly changing, from selection to disposal. Increasingly demanding, some impatient, customers want the best experience. A high-quality product is no longer the only differentiator. Global competition is increasing, and new players arise. In this competition, the most adaptable survive. In the midst of this turmoil, there is a solution! Supply Chain Management, pleasure!
Supply Chain Management Supply Chain Management (SCM) is the management of a network that connects all entities involved in the process that delivers value to end customers, whether in the form of a service, product, or experience. It also relies on a flow of information, which is essential for planning within each of these entities and the entire network. It coordinates and controls the activities and business processes within this network to achieve maximum efficiency and effectiveness. It also includes managing relationships with suppliers and customers through win-win partnerships, which seek to minimize costs and risks and maximize profit opportunities.
Continuous improvement in SCM increases the competitive potential of companies involved in the process, although it is not trivial. To achieve this, aligning objectives and agreed-upon planning among participating entities, cultural change focused on partnerships, and assigning the right people to the right place increase the chances of success for customer experience and, consequently, profit for the company.
Technology and data are essential elements in the process. From data storage, since a large amount of information flows through a chain, to the use of this data, which will provide relevant insights for demand forecasting and insight into potential developments within the system. Furthermore, Artificial Intelligence applications in Supply Chain for optimizing various activities are constantly growing. These topics will be covered in future posts.
Some people think that a sales plan and a production plan are sufficient to achieve the expected results. This may be true, but in today's complex, competitive, and uncertain world, this idea is outdated. Alignment between these plans is crucial.
So, how do you plan for a network that is often extensive and encompasses a large number of people and departments? Don't worry! That's what S&OP is for!
Sales and Operations Planning Sales and Operations Planning (S&OP) is a set of processes designed to continuously and strategically increase a business's competitive advantage. With this implementation, an organization can respond effectively to demand variability, make decisions that directly impact profitability, costs, and customer satisfaction, and manage risk across the entire supply chain.
It involves the integration of areas such as sales, operations, marketing, and finance. The supply chain acts as a facilitator, organizing the flow of information between these areas. In a coordinated manner and equipped with reports containing data from previous periods and forecasts, the areas meet to align the figures consensually. After approval, leadership decides on the action plan and monitors the results. The cycle begins again in an adaptive manner. Areas such as HR, IT, legal, and R&D can be invited to participate in the process.
Prospecting and retaining customers are increasingly challenging phases. Customer sentiment must be addressed from the very first contact. The experience delivered depends on how SCM and S&OP are implemented. Even if the processes already exist within the company, it's important to evolve. The presence of people specialized in SCM and S&OP implementation and management has the potential to increase a company's competitive advantage, enable it to adapt to the new world, and deliver much more than just a differentiator to the customer. Link Strategy has a specialist team to assist your company in achieving these goals!