Planning Policy Alignment
Planning Policy Decisions
Taking decisions on Supply Chain and Planning Policies is all about finding a balance between conflicting business vectors:
- Pressure to deliver the highest service level, requiring more safety stock or safety capacity;
- Pressure to reduce inventories, requiring smaller and more frequent production runs which in turn trigger changeover costs;
- Pressure to reduce costs;
- Pressure to maximize asset utilization, threatening reactivity and supply reliability (factory physics).
Decision Support to determine the right Planning Policies
The Equazion tool and methodology will guide your supply chain and planning policy decision making process. This 6 Sigma based approach assures consensus building based on facts and figures from a 360° business perspective (cost, cash, sales and marketing, manufacturing, …). The result is a balanced set of policies that are completely lined up with your business strategy and its performance objectives.
First, we analyze and assess your current planning policies along each of the business dimensions. We determine its impact on your current “cost and cash” performance. Based upon this performance assessment, our joint teams will determine improvement scenarios. In the improve phase, the Equazion software will allow you to reveal the complex interactions of the power vectors. It will calculate the impact of your business scenarios in terms of the RONA (Return on Net Assets) impact:
- EBIT
- Working capital
- Assets
This approach has a twofold advantage for your decision making. It quantifies the potential of an improvement scenario in terms of company value. And second, the vital aspects are separated from the trivial through the sensitivity analysis.
Equazion will allow you to determine the Make-to-order / Make-to-Stock strategy and the optimal planning policies per SKU, in line with service targets and economical reality.
Sustainable Results
Unlike traditional management consultants, S&V will transfer its entire knowledge and methodology to your team. Upon request of the customer, we can implement the Equazion tool and embed the methodology into your processes and organization. Your team will be aligning your policies periodically. This assures sustainable results in contrast to an “one-off” advice.
Check our Planning Policy Alignment client portfolio and testimonials.