Demand Management/Sales, Inventory & Operations Planning (SIOP)

Sales forecasting is another key operational function that so many companies struggle to do correctly. Those companies that do struggle with sales forecasting/demand management compensate by producing a lot of finished goods in order to avoid shortages for any of their customers.

If your company is producing an abundant amount of your company’s finished goods in order to avoid shortages, then your company probably has a lot of excess raw material stored inventory. We at OTTS see this scenario played out all the time: operations are told not to short customer’s orders no-matter-what!

Even though this is a common business practice, it is not very efficient. Let us at OTTS help your company’s operations to operate more efficiently!

Another common scenario, we at OTTS have seen over these past few years is that companies are investing in Demand Management software. This is good news. At least some companies are admitting that they struggle with Sales Forecasting/Demand Management. The bad news is the software implementation does not solve the company’s forecasting problem. Most Demand Management software is not set up to cover a company's plan versus actuals (This is very key to note!). These Demand Management software packages do not address the total sales by total enterprise, broken down by Country, Region, Brand, Category Distribution Center, Customer, and finally down to the sku level. In addition, most Demand Management software packages do not cover raw material forecasts versus actuals, by the supplier, plant operations, and material warehouse. Finally, these Demand Management software packages do not cover the cost associated with the specific category enablers as described above, which we at OTTS strongly recommend companies need to do, in order to be more efficient at reducing cost while increasing service levels!

Some of the signs to look for if your company is struggling with Demand Management/ Sales Forecasting:

All points listed below should be represented in both Units and Financials

  1. Does your company report Sales Actuals vs Plan from an Enterprise level broken down by every level? MTD, QTD, and YTD.

  2. Does your company have an S&OP or SIOP process?

  3. What is the forecast accuracy on your company’s sales and materials? Are you seeing forecasts accuracy below 90%?

  4. How much of your company’s finish goods or raw materials are listed as obsolete?

  5. What is your company’s yearly write-offs on finished goods and raw materials?

  6. Does Sales/ Marketing, Finance, and Operations sign off on all forecasts before being published? Are your sales and material forecasts being published for all key stakeholders in your company’s operations to see? (Big issue)

  7. How many weeks of supply does your company have on hand for both finished goods and raw materials?

  8. How many changes do your suppliers see on your company’s PO’s within the firm period?

  9. Do your company’s suppliers complain about your company's raw material forecast?

  10. Do your Operations leadership and their staff have a good understanding of your company’s Sales plan versus actuals? (Very common issue)

If your company has challenges and struggles with Forecasting Finished Goods and Raw Materials, you should give us a call at OTTS. 888.410.6887 Today! We at OTTS will set your company up with a World-Class Sales, Inventory, and Operations Planning Program (SIOP).

OTTS’s SIOP program will support your company’s leadership to drive out inefficiencies throughout your company’s entire value chain.

Demand Management/SIOP

Any company that wants to be successful should first understand the needs of its customers. Demand Management, an important aspect in business operations, is about understanding the needs of the customers and estimating the demands to be able to meet them, without compromising the quality of product or services and without increasing the costs. If your company’s demand management strategy is not helping you meet the ever-increasing demands of your customers, OTTS can help.

OTTS have very skilled supply chain specialists with years of experience in the industry and can develop and implement a demand management program strategy, that includes an in-depth Sales, Inventory and Operations Planning function that will enable your company to deliver what your customers and suppliers expect of your operations. At OTTS we set up your S&OP and SIOP programs

Many businesses do not have an effective Sales, Operations Planning (S&OP) or Sales Inventory Operations Planning program (SIOP) in place to meet their clients' demands. Some companies do not have any kind of S&OP or SIOP program in place. It means that businesses do not have a strategy in place to understand and compute the exact needs of the customers. They are not in a position to predict even roughly what their customers' needs are, which makes it impossible for them to even have an idea about how much inventory they should have in place. In fact, it is this lack of an S&OP or SIOP program that results in companies not having a proper demand management system in place.

If you are a new business or an established one struggling with inventory management and demand management, OTTS can help you set up the ideal S&OP or SIOP program that meets your requirements.

Is SIOP enough?

Along with an efficient SIOP, business today should also invest in a solid demand management program that allows them to compute the right quantity of products needed to meet the demand. Companies that are demand-driven do not rely on guesswork. They calculate and have clarity about the numbers. When you need such clarity, the OTTS team can help you.

Why demand management?

A Sales Inventory and Operations Planning program aim at aligning the production process with the sales and distribution, based on certain demand predictions. As a function in the business, demand management is important given the increase in the number of ways to reach the customer and the number of channels through which the sales process is completed. People can buy goods at retail outlets, through the web and even mobile applications. The data you have with regards to consumer demand comes from all these channels, which is what makes demand management all the more important. Better planning and data analysis are necessary when you have intense competition in the market and want to deliver the best results to your patrons without having to squeeze the profit margins. Demand management and planning is essential for both big and small businesses that want to constantly refine and evolve their strategies for better results.

Why choose OTTS?

OTTS team of supply chain management specialists have been in the industry for a long time now. We are the supply chain management experts and can support your business by devising the perfect demand management strategy and also implement it. With our demand management solutions, you can

• Get updated, real-time forecasts on a regular basis.

• Update the manufacturing and supply plans and execution with the changes in actual demand.

• Manage demand better through all possible channels through which the customer interacts.

• Make necessary changes or modifications based on volatile events such as a change in market condition, or planned events like the introduction of a new product, promotional offers and so on. We can also assist your business in setting up an automated process that enables clear and automatic communication regarding demand trends to your internal departments, partners and affiliates.

Learn more about the demand management solutions that OTTS has for your business. Talk to us today! 888.410.6887

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OTTS, Inc.

14271 Jeffrey Road, Ste. 326

Irvine, Ca 92620