Email
sinha.rk.dr@gmail.com
How frequently should S&OE give feedback to S&OP?
If we want to design the Supply Chain with a dynamic equilibrium between S&OP and S&OE, an important design element is the feedback loop. As we know, S&OE is in touch with the market reality every day. We also know that this feedback will be useful to S&OP to know whether actual demand is panning out in line with the plan or there is a large variance between them.
S&OP led companies have this feedback loop operating at a monthly frequency. Some companies have instituted a weekly review, but the process is largely anecdotal.
S&OE led companies can give this feedback daily, but the mechanism to influence and tweak the S&OP plan is often missing. Moreover, the feedback is generally on past actual sales rather than likely near term future demand.
A good design of this feedback loop starts with establishing a sharp demand sensing engine at the front end, which not only tracks the manifest demand, but also predicts near term demand at the granular level. Once the demand sensing engine is in place, daily feedback is the preferred option.
Would love to know how the feedback loop operates in your company…