Path: Services » Supply chain analysis/logistics advice » Sales, Inventory and Operations Planning (SIOP)

Sales, Inventory and Operations Planning (SIOP)

Optimizing the service level at the lowest possible investment requires more than a rule-of-thumb type of assessment and processes, given today’s need for cash, SKU proliferation, long lead times, volatility in demand and risks in both demand and supply.

BCI support clients in developing and implementation of Sales, Inventory and Operations Planning (SIOP) processes. BCI can help you answering questions like:

  • Which processes and responsibilities required in the SIOP cycle? How to implement? Which tools and metrics?
  • How much stock do we need to have in our supply chain?
  • Where to locate inventory best in the supply chain?
  • What is the ideal product mix (how much of which SKU, where)?
  • What is the optimal stock to service mix?
The key question is:

What is my minimum investment in inventory needed to have the right item in the right place at the right time to achieve my customer service objectives?
  • Sales: for product availability
  • Marketing: for increased item offerings and promotions
  • Manufacturing: to maintain production efficiencies
  • Procurement: to handle a more global supply base
  • Distribution: to reduce space and handling requirements
  • Supply Chain: to transform from a Push to a Pull philosophy
  • Finance and stockholders: to reduce inventory investment

Inventory and service level impact

Optimised stock versus current stock: A detailed SKU-based analysis is carried out to determine current versus optimal inventory level and allocation per SKU/product group.

Overall conclusion: there is often too much inventory you don’t need and not enough of the items most in demand.

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