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SIOP Expert Suggests Supply Chain Requires 360° Planning

Implementing a SIOP process can smooth supply spikes while improving cash flow and increasing profitability

Published: Tuesday, April 19, 2022 - 11:59

(LMA Consulting Group: Claremont, CA) -- Manufacturing and supply chain expert Lisa Anderson, president of LMA Consulting Group, predicts supply chain disruptions to continue through 2023. She suggests implementing a sales, inventory and operations planning (SIOP) or sales and operations planning (S&OP) process to mitigate the swings associated with disruptions. LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable and scalable business growth.

“You have to get in front of supply chain disruptions,” says Anderson. “For example, bring in strategic inventory stockpiles and gain available capacity before you need them. While this is simplistic, sometimes simple is what works best. When I was VP of operations with a plant in a hurricane zone, we brought in excess materials before the hurricane season because we knew supplies would be delayed if a hurricane hit. Once it hits, it’s too late.”

There is no doubt that the Ukraine crisis will create further supply chain disruptions. “Ukraine has a huge wealth of natural resources,” notes Anderson. “They are a big supplier of metals and other commodities, which will impact many supply chains. We are already feeling it at the gas pump. That is why it’s so important that companies look holistically at their supply chains. The supply chain is integrated within a company—meaning that every department is interconnected to the supply chain. It is also interconnected with customers and suppliers. Implementing a SIOP process to proactively align all departments, customers, suppliers, and other supply chain partners will result in predicting demand, setting customer expectations, planning resources and capacity, and smoothing supply spikes—all while improving cash flow and increasing profitability. It can be done, and the rewards can be significant.”

Anderson recently released the special report, “Thriving in 2022: Learning from Supply Chain Chaos”—Insights from 22 Trusted Advisors. It includes supply chain insights and perspectives from Anderson and 22 advisors who have supported clients through the supply chain upheavals of 2020 and 2021. The report is available at no charge from the LMA website.

About LMA Consulting Group

Lisa Anderson, MBA, CSCP, CLTD, is the founder and president of LMA Consulting Group, which specializes in manufacturing strategy and end-to-end supply chain transformation. She focuses on maximizing the customer experience and enabling profitable, scalable, and dramatic business growth. Ms. Anderson is a recognized supply chain thought leader by SelectHub; named a Top 40 B2B Tech Influencer by arketi group; a Top 50 ERP Influencer by Washigton-Frank; one of the most influential in Supply Chain by SAP; and a woman leader in supply chain by RateLinx. She was recently interviewed on Fox News and has published special reports with a supply chain focus: “Thriving in 2022: Learning from Supply Chain Chaos” and the ebook, Future-Proofing Manufacturing & the Supply Chain Post COVID-19, as well as her primer, I’ve Been Thinking, which outlines strategies for creating bold customer promises and profits. For information, sign up for her Profit Through People newsletter. For a copy of her book, visit LMA-ConsultingGroup.com.

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