Live Case Study S&OP (Sales and Operations Planning)

Over the next weeks and months DCRA Inc. will assist a firm with S&OP strategies and enablers.   We will publish all the major discussion and documents shared and discussed.   Our hope is this process will yield a stronger understanding of the value S&OP strategies and solutions can yield.  

We also hope to illustrate that smaller firms actually have the advantage over larger firms and methodology and software enablers can be quite minimal and very low cost… contrary to the “buzz”

Client is a less then $20MM in sales manufacturer and virtural manufacturer of custom lenses serving the healthcare industry.  We will refer to them as “Mfgr Z”

 Some background from client on their needs….

Challenges paraphrased from client’s own problem statement include

  • Low fill rate on repair lenses to hospitals
  • Significant demand for product…. Highly profitable business
  • 60% product made “in house”… 40% outsourced
  • Immediate shipment expected on order (repairs)
  • Need to shorten lead time for  orders
  • No long term planning for production… 2 to 4 months ofPO’s issued
  • Ship product all over the world
  • 40% of outsourced production comes fromEurope

In general Mfg Z looking for a seamless way to be educated in S&OP and begin a process to execute to improve customer fill rates, revenue and profits

More details to comes

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+ 3 days

Planning manager for shipper and DCRA Inc. have had good discussion in regards to the current state of operations in terms of metrics and overall feeling and operational environment.   It is clear planning manager knows operations can be greatly improved

DCRA’s recommendation at this juncture is to follow the Total Order Fulfillment Methdology a Trademarked approach to not only deploy the solutions but maybe even more importantly establish the business exitement in senior staff / owners and operators prior to kickoff.

This methdology starts with an assessment of working capital consumptions, inventory levels, customer service levels / satisfaction as well as cycle times.     See www.DCRAsolutions.com for a description of the methdology and even www.Texaslcc.org for a knowledgebase organzied around the methdology for ideas, case studies, tools and discussions.

The second step is to model operations if state of the art improvements were made.   This is much more then “benchmarking” but more of a first principals modeling of how the supply chain could /should work.    The same metrics are then measured based on significant improvement.   The metrics and the process to achieve are reviewed with all and in particular senior staff / management.    

The 3rd step is to then break down improvements into projects within a long term program to achieve.  This program is tuned to level of urgency, culture and capacity of business to accomplish said goal.  In addition the insight and experience of the DCRA team provides early quick win projects to begin momentum for change and pay for major projects like S&OP solutions / implementations that are key to making improvements sustainable

More to come

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Next step (next week) will be to begin to publish $ and time improvements possible

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Decks are clear and we are cleansing a real client Total Order Fulfillment / S&OP value prop to send to client.   Contact us at info@DCRASolutions.com  and we can send you the same template.    This template covers all aspects of the value prop for S&OP from pure teasury finance working capital, to order fulfillment to cycle time reductions for performing key jobs and managing relationships with supply chain sourcing/manufacturing partners

Will post a summary of template here in next few days

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