When it comes to the automotive supply chain, the age-old dilemma has been, how do you get the right product delivered to the right place, at the right time, and in the right quantity?
Sales, Inventory and Operations Planning, or SIOP for short, is a crucial approach in achieving manufacturing excellence and takes into account demand, production capacity and supply. Via the synchronization of various elements within a manufacturing system, including it facilitates a holistic view of the end to end manufacturing process, allowing for better decision-making and resource allocation within the factory.
Originally developed in the 1980s and with many modifications since, there are 5 key areas that a supply chain manager typically looks at monthly, if not more regularly, in order to make the process successful:
1/ Detailed data gathering of all project requirements
2/ Sales/Demand planning - essentially a forecast
3/ Production and Supply Planning - the deliverance capacity
4/ Review Meeting - balancing time fences with horizon views
5/ Sales & Ops Executive Approval Meeting - buy in from each and every department to ensure perfect alignment
By ensuring that all business functions adhere and fit to the company’s goals, SIOP planning allows companies to fine-tune their long-range strategic and annual business plans, leading to more accurate forecasting, less stock being held, improved customer loyalty and satisfaction, and lower transport costs.
Matching production capabilities with market demands, minimizing inefficiencies and enhancing overall operational performance is often considered as ‘manufacturing excellence’. Some of the leading Tier 1 suppliers such as ADIS Tachov s.r.o. take this a step further and use SIOP to help play a pivotal role in also enhancing their agility and responsiveness.
Ultimately, by integrating systems and optimizing processes, SIOP becomes a cornerstone in fostering collaboration among different departments and delivering outstanding service, and it positions companies to thrive in dynamic and competitive markets such as the plastic injection molding auto industry!
