Post-Pandemic S&OP

Although it seems like the world is getting back to normal, it is unclear as to whether it is the same ‘normal’ as before. Large and small businesses are still seeing a loss of production and availability of many products necessary to complete the manufacturing process. The downfall of these disruptions is that it is difficult, at best, and impossible, at worst, to forecast supply and demand needs. Small companies that count on spreadsheets to track and predict markets find they need S&OP software to help with this task, while larger ones are stepping up their game. 

Small Business Changes

Although a high percentage of small and even medium-sized corporations are generally dependent on only Microsoft Excel for S&OP, this will probably change. The post-pandemic setting means that businesses cannot use historical information to project future sales. At the very least, a turn to enterprise resource planning (ERP) combined with demand planning and forecasting is an expected requirement.

Even so, automation won’t replace the necessity for human intervention. A partnership of marketing and product development creates a symbiotic relationship for collaboration. 

Larger Business Changes

Large-scale businesses are more complicated when it comes to supply and demand. Automated forecasting and supply planning systems are compulsory, and the use of algorithms is a demand. These strategies also include space for arbitration by planners to account for different scenarios that might develop. This will mean a company is aware of changes and that it will gain a competitive margin over other less informed organizations. 

Customer Relationship Management

Properly maintained Customer Relationship Management or CRM tools play a part in the equation for proactive behavior. At the bare minimum, this process must include increases or decreases in sales by product, customer, and month. These numbers provide estimates to adjust for probable shifts in supply and demand. Used in conjunction with other strong S&OP systems, a CRM adds a layer of protection against surprises that can make or break an organization. 

Keep in mind, a CRM tool may not be helpful for certain specific situations. For example, an organization that sells to a large number of customers most likely won’t receive much insight from this game plan. 

Data Integrity

Skewed, erroneous, or misleading data leads to floundering and even failure. If data is on par, it is easier and quicker to recover from upheavals in supply or demand. This occurs because inventory is more accurately planned, reduces out of stock with a coequal increase in sales, diminishes costs associated with inventory transfers, and reduces logistics expenses. In short, pertinent data sets up a company for a successful outcome during seasons of disruption. 

Future Success

It is vital for manufacturers and distributors to prepare for this ‘new normal’. Assessing automation supply chain needs and taking steps to ensure a well-structured S&OP process heightens a business above the competition. Staying at the forefront of technology, software, and preserving a team of individuals who constantly monitor S&OP results secures the future performance of supply and demand.