When does a separation between demand and supply planning make sense?

Usually, a supply planner has to ensure availability of goods and compliance with inventory targets. It is not possible for a planner to simultaneously process countless order and production proposals as well as specific orders in any given day, check compliance with deadlines and quantities, optimise dispo parameters, and record and validate future (short- to medium-term) requirements and reconcile them with various functions within the company.

Some aspect of the day-to-day business is bound to suffer – mainly medium-term demand planning and validation, even though this is an essential part of a comprehensive S&OP process. Only a structural and organisational separation of demand and supply planning can lead to there being greater focus and a systematic improvement of planning quality that will influence availability and stock.

The process of change and the taking-on of tasks that may not in the past have been deemed wholly necessary do not always run smoothly. A qualification programme in support of this is urgently needed. Process development and success, as well as further potential for improvement, should be identified at an early stage and communicated within the company.

In its capacity as interim manager, Buchbach-Consulting has long been supporting the step-by-step implementation and readjustment of planning processes in the context of corporate integration and the establishment of an independent planning organisation within the largest sales organisation of a well-known consumer goods manufacturer.

We offer at your disposal our comprehensive experience in change processes and our skill at bringing together different teams to act as the “interface” for successful cooperation within a company.

Contact us. We would be delighted to send you more detailed information on this topic:

info@buchbach-consulting.com