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SIOP Process Overview and Steps

The document describes the Sales and Inventory Operations Planning (SIOP) process. SIOP is a monthly process that engages all functions to create aligned, forward-looking plans and optimize resources to achieve business goals. The key elements of the SIOP process are demand planning, inventory planning, supply planning, and financial planning. The process involves weekly meetings over 4 weeks to review the portfolio, demand and inventory, supply, and perform reconciliation. The goals of SIOP are to maximize customer service and satisfaction while minimizing operating costs and inventory.

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Adrian Tajmani
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2K views8 pages

SIOP Process Overview and Steps

The document describes the Sales and Inventory Operations Planning (SIOP) process. SIOP is a monthly process that engages all functions to create aligned, forward-looking plans and optimize resources to achieve business goals. The key elements of the SIOP process are demand planning, inventory planning, supply planning, and financial planning. The process involves weekly meetings over 4 weeks to review the portfolio, demand and inventory, supply, and perform reconciliation. The goals of SIOP are to maximize customer service and satisfaction while minimizing operating costs and inventory.

Uploaded by

Adrian Tajmani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • SIOP Process Overview
  • What Is SIOP?
  • Why Do We Need SIOP?
  • SIOP Optimisation
  • SIOP Principles
  • SIOP – A Consistent Cycle of Events
  • SIOP – A Structured Monthly Process
  • The Continuous Management of Change

SIOP Process

Overview
55
Executive
Executive
SIOP
SIOP Meeting
Meeting
(Wk4)
(Wk4)

44
SIOP
SIOP
Reconciliation
Reconciliation
(Wk3)
(Wk3)

33
Supply
Supply Review
Review
(Wk3)
(Wk3)

Integrated
reconciliation
& financial
appraisal

11
Portfolio
Portfolio
&
& Product
Product Review
Review
(Wk1)
(Wk1)

22
Demand
Demand &
& Inventory
Inventory
Review
Review
(Wk2)
(Wk2)

What Is SIOP ?

Sales & Inventory Operations Planning


is the single process to engage all functions in creating
aligned, forward looking plans & make decisions that will
optimise resources & achieve a balanced set of goals
A cohesive process to plan our main business activities
SIOP
Demand
Planning

Inventory
Planning

Supply
Planning

Financial
Planning

SIOP Must be Built On A Standard Process, World Class Tools


& A Fully Engaged Culture

Process = 40%

Tools = 10%

Cultural Change = 50%

Why Do We Need SIOP ?


Increasing concentration on inventory & working
capital within the business
Drive towards demand growth in new markets

Maximise customer service & satisfaction


Glues key Demand & Supply functions together

Focus on the future business performance rather


than the past
Drive consistent business processes
SIOP Focuses on key business goals via agreed metrics

SIOP Optimisation
Maximize
Customer
Service

Minimize
Operating
Costs

Minimize
Inventory

SIOP Principles
World class businesses have supply chains that are:
Demand driven
Collaborative involving all departments
We will advocate a SIOP process that reflects this:
Demand-led; it begins with the Voice of the Customer (VOC)
Inventory management as an integral part
Strong demand-supply links through information & feedback
Structured and disciplined monthly meetings with buy in & clear objectives
We believe in:
Actively involving Marketing & Sales in the process
Sharing and discussing stocking policies and customer needs.
Actively seeking consensus (agreement)
Translating the plan into cash terms & linking to AOP to give relevance to the whole business
A robust SIOP process will lead to:
Improved customer focus and service
Lower finished goods inventory levels
Reduced IOS via strong NPI management / product lifecycle management

SIOP A consistent cycle of events


55
Executive
Executive
SIOP
SIOP Meeting
Meeting
(Wk4)
(Wk4)

44
SIOP
SIOP

11
Portfolio
Portfolio

Reconciliation
Reconciliation

&
& Product
Product Review
Review

(Wk3)
(Wk3)

33
Supply
Supply Review
Review
(Wk3)
(Wk3)

Integrated
reconciliation
& financial
appraisal

(Wk1)
(Wk1)

22
Demand
Demand &
& Inventory
Inventory
Review
Review
(Wk2)
(Wk2)

A robust monthly process of continuous improvement .

SIOP A structured monthly process


1

Portfolio

Demand &

& Product Review

Inventory Review

(Wk1)

(Wk2)

Review changes
to product
portfolio (NPI &
phase in / out ) &
current promos

Capture VOC
through
forecast key
projects /
spikes /
abnormal
demand

Review Supplier
capability &
performance
(OTD)

Review NPI
initial order /
forecast

Gain commitment
from the
suppliers to the
demand plan

Statistical
forecast made
based on
historical sales
Obtain input from
Sales &
marketing to
improve forecast
Review IOS
status & develop
activities

Review safety
stock levels &
Inventory
Policy

Supply Review
(Wk3)

Review inventory
projections

Reconciliation

5
Executive
SIOP
Meeting

(Wk3)

(Wk4)

4
SIOP

Cashing up
the plan Translate
SIOP plans
into $ and
compare with
AOP
Evaluate any
gap plan to
AOP
Solve or
escalate
issues

Business
Review
Solutions
Review
Confirmation
of alignment
of Plan v AOP
& STRAP
plans

The Continuous Management of Change


Week:

Continuous reconciliation

Product Review

Continual
Change

11
Stat.
Stat. forecasting
forecasting
&
& Product
Product Review
Review
(Wk1)
(Wk1)

Demand Review

22
Demand
Demand &
& Inventory
Inventory
Review
Review
(Wk2)
(Wk2)

Supply Review

33
Supply
Supply Review
Review
(Wk3)
(Wk3)

Reconciliation Review

44
Pre-SIOP/
Pre-SIOP/
Reconciliation
Reconciliation
Review
Review
(Wk3)
(Wk3)

Exec. SIOP meeting

55
Executive
Executive
SIOP
SIOP Meeting
Meeting
(Wk4)
(Wk4)

SIOP is not a series of meetings, it is a continuous process

SIOP Process Overview 4 SIOP Reconciliation (Wk3) 4 SIOP Reconciliation (Wk3) 2 Demand & Inventory Review (
What Is SIOP ? • Sales & Inventory Operations Planning is the single process to engage all functions in
Why Do We Need SIOP ? • Increasing concentration on inventory & working capital within the business • Drive towards demand g
SIOP Optimisation Maximize Customer Service Minimize Operating Costs Minimize Inventory“Sweet Spot” (Our Target)
SIOP Principles • World class businesses have supply chains that are: – Demand driven – Collaborative involving all departmen
SIOP – A consistent cycle of events 4 SIOP Reconciliation (Wk3) 4 SIOP Reconciliation (Wk3) 2 Demand & Inventory Review (W
SIOP – A structured monthly process Review changes to product portfolio (NPI & phase in / out ) & current promos Statist
Product Review Demand Review Supply Review Reconciliation Review Exec. SIOP meeting The Continuous Management of Change Week:

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