August 10, 2016

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Decoding Technology for S&OP Strategy and Execution

The functioning of an enterprise begins with the strategic planning process. Post the strategic planning exercise every organization goes through the Sales and Operations Planning (S&OP) process. While strategic planning tells an organization what to do, S&OP tells them how to do things.

The S&OP process is called high level planning. It predominantly synchronizes and balances the Demand, Supply, and Inventory (DSI) side of an organization. Post S&OP, the production planning process begins, which is called tactical or lower level planning. It comprises of MPS (Master Production Schedule) and MRP (Manufacturing Resources Planning) stages. MRP triggers the procurement and manufacturing process once its recommendations are accepted. After this, the execution process begins with procurement followed by manufacturing, outsourcing, distribution, and logistics. This, in a nutshell, is how an organization functions.

Strategic Planning can be done in two ways – ‘Top to Bottom’ approach and ‘Bottom to Top’ approach. Top to Bottom approach begins with Vision, Mission, Objective, Key Result Area, Key Performance Indicator, and Directions. The traditional Bottom to Top approach flows with Industry Analysis, Internal Analysis, SWOT Analysis, and Directions. Generally, a filtration process is done after the organization sets the direction to get the final strategic directions.

S&OP helps connect the strategic planning process with manufacturing planning and execution process.Companies without an SOP process find it difficult to align strategy and business plan with execution.The benefits of running an S&OP process are stable production rates, less overtime, better visibility in future demand and capacity requirements, and higher customer service level. S&OP process helps the entire company to agree and operate towards 'one set of numbers'.

HCL Technologies has proven capabilities and solutions in all the above mentioned areas. HCL can frame a strategic plan for customer through consulting services and provides S&OP and production planning capabilities predominantly through consulting services and different COTS products i.e. SAP IBP, KINAXIS, ORACLE DEMANTRA and standard SAP, JDA, and ORACLE Modules.

HCL provides procurement, manufacturing, and distribution capabilities predominantly through consulting services and different COTS products i.e. standard SAP, JDA and ORACLE modules, ARIBA and various other products and through bespoke development.

HCL Technologies is a one-stop for all strategic planning and S&OP activities and has been enabling customers in these areas with high level of satisfaction.