Lorraine Consulting Inc.

increasing sales through focused planning strategies

Overview

A leading aerospace manufacturer wished to improve customer satisfaction both internally and externally.  Executives agreed an improved SIOP (Sales, Inventory and Operations Planning) process would lead to better management of sales activities, inventory, resources and production planning.

The Objective

• Improve existing S&OP process
• Improve OTD from 91% to 95%

Opportunities

Committing to a higher customer service level triggered optimizing production planning & order fulfillment.  The company could experience:

• Higher customer service levels
• Desired inventory levels
• Improvements in Capacity Planning and Resource Management

Approach

Together we tackled these supply chain challenges by:

• Developing a central SIOP tool driven by ERP data to review customer demand & latest supply resources
• Forming expectations surrounding input, rolling time horizons & routine updates
• Partnering with each business function to understand forecasts, customer orders and supply gaps
• Establishing escalation paths and information exchange routes
• Gaining visibility in the planning practices to proactively impact sales and operations

Results

• Aligned planning and execution processes to support higher service levels
• Achieved On-time Delivery goal of 95% to customer base
• Reduced customer order backlog by 20%
• Decreased overall inventory by 10%