Planning S&OP: supply and demand | Bonfiglioli Consulting

An effective planning process is critical for any company that wants to maximize the level of service to its customers by efficiently using its production resources and inventory.
This is done by implementing the planning hierarchy and integrating it into the management system and/or verticals to gain full control of the supply chain.

Our approach | Planning Action Strategies

The planning function is the brain of the factory and is the one that needs and uses most of the data in the ERP. The planner checks whether resources (materials and capacity) are sufficient to meet market demand or more are needed. It also moves materials from suppliers to the company, ensures customer satisfaction and efficient use of production resources.

Our projects are characterized by a strong involvement of all supply chain stakeholders to transfer skills and best practices. We also believe it is essential to fully involve the IT function to integrate planning best practices into the system.

One of our goals in the course of projects is to transfer into the client's corporate ERP the information that often resides in the experience of individuals or in external databases; we have experience applying best practices directly and know how to use major ERP systems. We are therefore able to direct and train the client's staff in improving and making more effective use of the management system.

The function is divided into those who plan the finished product (Master Planner) and those who plan semi-finished products and materials procurement (Material Planner), responsibilities that may vary depending on the type of production logistics model with which the market is served:

The Master planner has the main objective of managing finished product production orders, ensuring the feasibility of the production plan from a capacity standpoint and meeting the dates required by the customer. Also has responsibility for the finished product warehouse.

The Material planner Manages MRP output, i.e., semi-finished product production orders, purchase requisitions, and work account resulting from the finished product production plan. It has the objective of balancing inventory with production efficiency while meeting finished product requirement dates. Must ensure the feasibility of the semi-finished product plan both from a production capacity standpoint and from the component/raw material availability check.

In many organizations within the planning or supply chain function there is the demand planning key entity as it owns the forecast, a central element in sourcing materials on time and having a view of the future.