Balancing Demand and Supply with S&OP
This process helped us through the last two years of peak season management and now we are progressing to an increasingly mature process that involves more people.
S&OP or Sales and Operations Planning is is one of the key projects Hung Hing started at the end of last year. This process is intended to improve communications, visibility, and accuracy of demand and production data leading to better balancing our demand and supply. This process helped us through the last two years of peak season management and now we are progressing to an increasingly mature process that involves more people. Currently we have weekly meeting to review our forward plans for four weeks and look at our forecast demand and capacity 10 weeks out.
This visibility of our capacity enables both marketing and production to discuss lead times, availability of material and delivery schedules and communicate with customers more effectively so that their plans are not impacted by a lack of planning. The Executive management team is also able to use this information to review capacity needs and make better strategic decisions on capital and resource allocations. Its a process that is improving with each month and will continue to form a central part of our supply chain improvements in the future.
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