The original SCM is a strategic management method! An explanation of "What is S&OP?" using diagrams!
In the previous column, I mentioned that it is impossible to accurately determine future demand 100%. I believe there is no disagreement on this point unless one possesses the supernatural ability to predict the future. So, how can we capture demand that cannot be fully predicted and is constantly fluctuating? Of course, efforts to improve the accuracy of future demand forecasts are very important, and without such efforts, it is impossible to enhance the accuracy of planning for production, procurement, and shipping. On the other hand, if future demand fluctuations cannot be accurately captured, one approach is to respond quickly and adapt to those fluctuations. [Overview] ■ PDCA Process in SCM ■ What is S&OP? *For detailed content of the column, please refer to the related links. For more information, feel free to contact us.
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