Executing a Value-Chain Flow Plan With S&OP to Manage Unprecedented Supply & Demand Shocks

In the current pandemic environment, many assumptions have changed and forecastingand planning have become harder. It is a given that, as the environment around you changes, so should your approach toplanning. This does not, however, mean that you need to reinvent proven S&OP techniques and processes; rather, you shouldunderstand what outputs have changed and trace these back to a changed correlation in inputs. Value Chain Management—where we take a holistic view of the entire product lifecycle, combining demand and supply planning and supporting themwith S&OP—is our foundation for successfully navigating supply/demand shocks. This article will reveal how such a process iswell-placed to react quickly and effectively in such circumstances and, when complimented by a three-step framework thatconsiders input fidelity, S&OP frequency, and changed latency of levers and constraints, we can manage the unprecedenteddisruptions caused ...