Circular transformation in Supply Chain is about developing Supply Loops. A transformation is needed because the current response to the global climate crisis represents an incomplete picture. The circular economy represents a nature-positive solutions framework, and it brings the answers to interconnected biodiversity and climate emergencies. Leading companies are starting to harness the opportunities it offers. And for some, scaling up circular innovations is now a priority. In this blog post, we will look at how the Supply Chain can harness the opportunities by transforming the Supply Chains into Supply Loops.

Why is there a need for Supply Loops?

Today’s efforts to combat climate change have focused mainly on the critical role of renewable energy and energy-efficiency measures. However, meeting climate targets will also require tackling the remaining 45% of emissions associated with making products. By 2050, the global demand for industrial materials such as steel, cement, aluminum, and plastics is projected to increase by two to four, while global food demand is projected to increase by 42%. This increase in demand will have significant implications for GHG emissions. Even with ambitious strategies to increase energy efficiency and move to zero-carbon energy sources, emissions from the production of steel, cement, aluminum, and plastics will exceed the remaining carbon budget for industry and energy emissions. Addressing emissions in industry and the food system presents a particularly complex challenge.

Our ”take-make-waste” linear economy is heavily extractive, resource-intensive, and produces greenhouse gases (GHGs), causing the climate crisis. Companies extract materials from the earth, apply energy and labor to manufacture a product, and sell it to an end-user, who then discard it when it no longer serves its purpose. This linear approach, which relies on fossil fuels, emits GHGs causing a global climate crisis.

To meet climate targets. A fundamental shift will be needed in how the economy functions and creates value. It will require moving away from today’s take-make-waste linear model towards a regenerative economy by design.

In such an economy, natural systems are regenerated, energy is from renewable sources, materials are safe and increasingly from renewable sources, and waste is avoided through the superior design of materials, products, and business models.

The Circular Economy is the answer

The circular economy completes the picture of what is required to tackle the climate crisis. It offers an approach powered by renewable energy and transforms the way products are designed and used. The framework cuts GHG emissions across the economy through strategies that reduce emissions across value chains, retain embodied energy in products, and sequester carbon in the soil. Circular economy principles present unique opportunities to help tackle the climate crisis by reducing GHG emissions.

Applying circular economy principles to transform the way goods and materials are produced and used in the economy would offer significant potential to reduce GHG emissions. Of course, the shift toward circular consumer behaviors is a critical driver of a successful transition to circularity. Circular consumer behaviors increase the number of goods that flow back into the cycle and signal demand to brands for circular products. There is a growing trend of consumers demanding sustainable products, with more than 50% of consumers are willing to pay more for sustainable development.

Circular Economy and Supply Loops

As circularity ultimately revolves around the movement and flow of goods, Supply Chains must be redesigned, and new Supply models must be developed. In other words, Circular Transformation requires the development of Circular Loops. In that aspect, two main challenges arise:

1) How can the company capture end-of-life products and unused items to re-introduce them into the cycle.

2) How to design products flows and cycles in the most suitable, efficient, and environmentally friendly way

To successfully engage both manufacturers and consumers while protecting the planet, Supply Chain must be designed cost-effectively and environmentally conscious.  

Supply Loops, in essence

What are we referring to when we say Circular flows and Supply Loops, and how will they influence the Supply Chain?

It is about designing for disassembly and material efficiency

Products and materials should be designed to be kept in use and regenerated into natural systems. To allow for the increased utilization and circulation of products, components, and materials, circular economy principles should be integrated at the design stage of goods to enable high-value recovery and develop new circular economy business models. This approach requires products to be designed for disassembly, modularity, repairability or biodegradability, reuse, remanufacturing refurbishment, or regeneration.

Design can play an essential role in eliminating waste. By designing for material efficiency, material input can be reduced. While planning for an optimized Supply chain can reduce waste generation. Both offer practical ways of lowering the amount of energy and materials used.

Apart from products, waste can also be designed out of systems. When it comes to Supply Chains, waste generation can be minimized by reducing the amount of material lost during production. For example, half of the aluminum produced each year does not reach the final product but becomes scrap. Using measures such as process automatization and emerging technologies such as 3D printing can reduce GHG emissions.

It is about substituting materials

Material substitution refers to renewable, low carbon, or secondary materials as alternative inputs to new production. These provide the same function but contribute to reducing emissions. The use of renewable materials can be particularly interesting for replacing inputs that are hard to make emissions-free.

It is about recirculating products and materials

The circular economy favors activities that preserve the value of energy, labor, and materials. This means employing reuse, remanufacturing, and recycling to keep products, components, and materials circulating in the economy. Circular systems effectively use renewable materials by encouraging many different economic services before returning safely to natural systems.

Reuse measures conserve the embodied energy and valuable resources used to manufacture products and components. The more a product is utilized, the larger the return on the resources embodied in the development, such as materials, labor, energy, and capital. By keeping products in use, GHG emissions associated with new production and end-of-life treatment are reduced while providing the same benefits.

Recirculation refers to the recycling of materials. GHG emissions are reduced from avoiding new virgin material production and end-of-life treatment, such as incineration and landfill. While measures that increase product utilization contribute the most to retaining the energy embodied in products, recycling still requires much less energy than the production of virgin materials.

If you would like to learn more about the Circular Economy and its impact on business, you can find on-demand webinars here.

How can technology support the Circular transformation?

Many companies realize how integral their network configuration is when embarking on the Circular journey. Also, they know that the increased complexity of a Circular Supply Chain requires visibility and orchestration. For many, the keywords are Supply Chain redesign, Supply Chain transparency, and transportation decarbonization.

Innovating the Supply Chain and creating Supply Loops could be a crucial initiative in order to transform into a more Circular business model. It would mean building reverse logistics solutions cost-effectively, creating new packaging, repair, refurbishment, asset collection, and sorting offerings: building capabilities and capacities for the increased quantity of Circular flows. Low emission solutions should be considered for the diverse set of future flows. 

Supply Chain Design, as a technology, could be a solution to the challenges mentioned. In Supply Chain design, you model your Supply Chain network in a digital twin and continuously optimize it as new questions or opportunities arise. Suppose the Circular transformation requires you to diversify the external supply base or look at localizing or regionalizing your manufacturing network. In that case, Supply Chain design can support you with scenario analysis and calculate the cost, risk, environmental impact, and consequences from a service point of view.

Supply Chain design can also support you if you want to create new Supply Loops, capturing the end-of-life product flows and unused items flow and re-introducing them into the cycle. Accessing end-of-life products will require convenient return flows and collection that incentivize consumers to participate. We must not forget that the volume of return flows will increase because of circularity, which means that return flows need to be well integrated into the existing Supply Chain. Furthermore, when designing specific flows, a decision on the optimal point, such as sorting, needs to be made from a process and a geographical perspective.

Optimal production planning and inventory management require adaptations to be ready for a circular world. Purchase scheduling of material inputs needs to be adjusted to the availability of recycled materials. Moreover, production processes naturally create waste such as leftover materials and wastewater. This, of course, needs to be minimized. Even when production processes are optimized for circularity, the often-remaining overproduction is one of the most significant issues. So what we will possibly see in the future is on-demand or demand-driven manufacturing processes. That would mean only producing when a customer has purchased it.

Sources: Delivering on circularity, Pathways for fashion and consumer electronics

The Optilon Supply Chain Sustainability Minifestival took place from February 21st to February 25th 2022. Watch or rewatch all the exciting sessions whenever you like.

Delivering on Circularity

Monday we had a great start with a very dynamic and knowledgeable speaker, Gitte Haar, from Center for Circular Economy who introduced us to the Circular Economy and the legislation which the EU is imposing as well. We looked at what impact it could possibly have on businesses.

After that, we had a very dynamic panel debate between Marcel Jacobs, Philip Morris, Gitte Haar, and Havard Jørgensen from Electrolux. You can watch the recording here. 

Supply Chain Design and Sustainability – Accelerating the Net Zero emissions journey

We had the pleasure of having Anders Remnebäck and Andreas Andersson on stage from Optilon. They are both very experienced when it comes to adding the Sustainability angle to Network Optimization/Supply Chain Design. They have in this webinar focus on how you can accelerate the journey to NetZero emissions. You can watch the recording here.

Supply Chain Sustainability Software Pitch-Contest

During this session we had invited 6 different start-ups from across Europe to do a pitch. All of them showcased how their company specifically is trying tol solve the Sustainability challenges with their software. The company Prewave won. You can watch the recording here.

Supply Chain Planning and Optimization from a Sustainability Perspective

During this session Optilon’s experts within Supply Chain Planning, John Wikstrom and Nathalie Johansson, introduced us to how you can use Supply Chain planning to reduce your carbon emissions. As Optilon has discovered in previous reports, 1/5 of what is in stock is unnecessary. You can watch the recording here.

The Regenerative Supply Chain

The terminology Regenerative Supply Chain is not yet widely recognized in the Supply Chain field. In this session we looked a little bit deeper into the terminology in order to try and understand what impact it could possibly have. Assistant professor at Århus University Henning De Haas gave an introduction to his understanding of the Regenerative Supply Chain. He put emphasis on the fact, that mental models play a vital role. After that, August Krogh From Slowforest Coffee introduced us the company he works for. They have already laid out the plans for their Regenerative Supply Chain. You can watch the recording here.

Learn more about Options sustainability offerings here

Companies must help prevent the worst impacts of climate change by reducing their green house gas emissions (GHG). It has to happen as quickly as possible and as far down the Supply Chain as possible. In this blogpost we will look further into what Supply Chain sustainability is all about and get a deeper understanding of what green house gas emissions is in a Supply Chain context. We will look into how accelerating the Net Zero journey with Supply Chain technology can help you create competitive advantages as well as help save the planet.

Green House Gas emissions (GHG) in Supply Chain
Supply Chain sustainability is the management of environmental, social, and economic impacts and the encouragement of good governance practices, throughout the lifecycles of goods and services. The objective of Supply Chain sustainability is to create, protect and grow long-term environmental, social, and economic value for all stakeholders involved.

The Supply Chains are responsible for the majority of global emissions and must do its part to meet the goals that were set at the 21st Conference of Parties. The aim is basically, to limit temperature increase to 1.5 degrees Celsius. Net zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere. We reach net zero when the amount we add is no more than the amount taken away.

According to the GHG Protocol, corporate emissions are categorized into three main groups: scope 1, scope 2 and scope 3. Scope 1 emissions are direct emissions produced by the burning of fuels of the emitter. Scope 2 emissions are indirect emissions generated by the electricity consumed and purchased by the emitter. Scope 3 emissions are indirect emissions produced by the emitter activity, but owned and controlled by a different emitter from the one who reports on the emissions.

Growing urgency to reduce GHG
There is a growing urgency to reduce GHG emissions wherever possible and this includes reducing scope 3 emissions in addition to scope 1 and 2 emissions. To date most companies have been focusing on reducing their emissions under their direct ownership or control (scope 1). As well as their purchase of electricity, heat and steam (scope 2). Indirect emissions upstream and downstream in a company’s value stream (scope 3) are often left unabated.

Scope 3 emissions are the largest source of a company’s emissions in many sectors and is the hardest to influence and control. Approximately 40% of global GHG emissions are driven, or influenced, by companies through their purchases of goods and services and through the products they sell.

Focusing on scope 3 emissions can reduce the impact on climate change and can lead to substantial business benefits. Companies can mitigate risks within their Supply Chains, unlock new innovations and collaborations, and respond to mounting pressure from investors, customers, and civil society. Also, by disclosing Supply Chain emissions, the company will earn trust from its stakeholders and potentially gain new customers that support the transformation. A Sustainable Supply Chain can be a competitive advantage.

How can Supply Chain technology help accelerate the journey to net zero?
To reduce or improve the scope 3 intensity an organization can initiate projects, programs, business decisions or other actions and set targets, that are in line with the percentage reduction of absolute GHG emissions required. 

  • Supply Chain reconfiguration Reconfiguring the Supply Chain can be a time-consuming and challenging exercise. Most often the amount of data is extensive. Also, the speed in developing a decision-making model can be limited to yearly or quarterly exercises because time limits it. Technology can help you solve the toughest problems across your industry with innovative algorithms in a speedy fashion.
  • New business model Meeting sustainability targets does for some companies mean developing new business models. Having a decision-making model can help you reduce development time.

  • Greening end-to-end planning Optimizing the company’s approach to end-to-end Supply Chain planning from a CO2, as well as a cost and performance perspective, is also a well-known approach. In practical terms it means, focusing on the stock-to service curve. This means having only the stock that is needed to serve the clients. Fewer but right goods ensure lower obsolescence. It also translates to fewer freight ton kilometers, as less goods need to be transported. Efficient inventory management creates a more sustainable approach to producing, transporting, and selling goods across the globe.

 

(Source: Supply Chain Sustainability – A Practical Guide for Continuous Improvement, Un Global Compact and BSR)

Download trend report

It can be challenging to understand what environmental Supply Chain sustainability is all about.

Sustainable Supply Chain management starts with being aware of your company’s environmental, social, and economic impact and, most importantly, making the necessary changes to lessen it. The process can involve everything from a warehouse’s source of power to transporting goods and beyond—recirculating components or ensuring that the biodiversity stays intact. The specter is, so to say, broad.

We define Supply Chain Sustainability as:  

”Efforts to consider the environmental and human impact of their products’ journey through the Supply Chain. From raw materials sourcing to production, storage, delivery and every transportation link in between”.

Environmental Sustainability
Environmental Sustainability aims to improve human welfare by protecting natural capital (land, air, water, minerals, etc.). Initiatives and programs are defined as environmentally sustainable when they ensure that the population’s needs are met without the risk of compromising the needs of future generations. Environmental Sustainability emphasizes how a business can achieve positive economic outcomes without doing any harm, in the short- or long term, to the environment. An environmentally sustainable business seeks to integrate all three sustainability pillars, and to reach this aim, each one needs to be treated equally.

Climate change refers more specifically to anthropogenic climate change, meaning the rapid rate at which the temperature of our planet and its atmosphere has increased over the past century due to human activity and can result in large-scale shifts in weather patterns. Some gases in our atmosphere make it work like a greenhouse, and we call them greenhouse gases (GHG). The higher their concentration, the more they trap heat. The greenhouse includes carbon dioxide, methane, ozone, nitrous oxide, etc.

Decarbonization in the Supply Chain
Since the industrial revolution, we have been burning fossil fuels such as oil, coal, and natural gas; therefore, our human activities have contributed to a 45% increase in the atmospheric concentration of carbon dioxide. There is a correlation between CO2 concentration and temperatures – when the CO2 emissions increase, so does the global average temperature on earth.

For many, environmental Supply Chain sustainability is primarily about the use of natural resources and the climate impact of the company’s actions. As a rule, it is not enough to look only at one’s value creation. After all, a typical consumer-goods company’s Supply Chain generates far greater environmental costs than in-house operations: for instance, it is responsible for more than 80 percent of greenhouse-gas emissions and more than 90 percent of the impact on air-land, water, biodiversity, and geological resources.

The term decarbonization of the Supply Chain means the reduction of carbon. It is the conversion to an economic system, a new way of operating, which sustainably reduces and compensates carbon dioxide emissions (CO₂).

Green House Gas emissions are divided into three scopes:

1. Scope 1: Direct emissions resulting from vehicles, fuel use, and/or chemical leakage

2. Scope 2: Indirect emissions resulting from bought electricity, cooling, heat, and/or steam

3. Scope 3: Other indirect emissions that occur in the value chain of a company and are not already included within scope 2 (such as emissions resulting from purchased goods and services, transport, or business travel)

According to Normative, 90% of a company’s emissions are in scope 3.

The role of the Supply Chain going forward
Companies face a huge environmental challenge if they intend to meet the current EU climate targets; they will have to more than halve their greenhouse-gas emissions by 2030.

Given that prosperity and consumption will continue to grow in the coming years, a fundamental change in thinking is required; new business models—especially those relating to the circular economy—will have to gain an increasingly firm footing.

It is essential to understand where emissions come from to figure out how a company can most effectively reduce emissions and which ones can and can’t be eliminated with the current approach and activities. Today we know that emissions come from many sectors, and we need many different solutions to decarbonize the economy. 

Supply Chain decarbonization is a multi-faceted challenge which means working closely with the suppliers. There is an urgent need to change how companies work with their suppliers to lower the carbon impact and improve the operational implications.

The task is hence to:

  • Create an environmental data baseline (including GHG scope 1, 2, 3)
  • Engage the suppliers in the action’s
  • Perhaps redesign the Supply Chain network, which could potentially also mean the flow of goods

Today’s challenges in production companies

The typical business or Supply Chain operates in a world where the ”new normal” is increased instability, brought about by a multitude of causes. Supply Chains must become more agile, resilient, automated, and efficient. This is also true within production. 

Do you encounter the following challenges in your production?

  • Are your service levels low?
  • Do you have a high inventory and capital tied up in stock
  • Is it cumbersome to reschedule the production plan?
  • Do you have a low level of automation in your processes?
  • Are you lacking an overview and one joint production plan?
  • Are you able to simulate?

Where and how much to produce
It is essential for the business to address when, where, and how much to produce to maximize service levels and production efficiency while minimizing inventory and production costs. Effective plans are enabled with Supply Chain Production Planning technology. 

In the mid-to-long-term perspective, a feasible and leveled production plan supports production management for capacity/manning decisions and the requirements of purchase materials. In the short term, a realistic production schedule is created to support production supervisors/operators in producing the right order at the right time, ensuring high service levels and minimized set-up times.

Real-time simulations
In other words, a Supply Chain Production planning solution helps effectively and timely govern the core processes of advanced planning, scheduling, and manufacturing execution. The lean, flexible and interactive tool is designed to run real-time simulations and thoroughly analyze results, following intuitive and streamlined workflows.

At Optilon, we can help you implement effective processes through cutting-edge technology to:

  • Obtain a high degree of automation and reduce manual work for planners
  • Reschedule plans faster when prerequisites changes
  • Obtain higher service levels and reliability of promised delivery time
  • Get a lower inventory and capital tied up in stock
  • Minimize set-up time and production costs – and increase resource efficiency.
  • One common plan. Better overview and company-wide decision and communication platform.
  • To be able to work more proactively and see future problems in advance.

The typical business or Supply Chain operates in a world where the “new normal” is increased instability, brought about by a multitude of causes. Supply Chains must become more agile, resilient, automated, and efficient and this is also true for the production. environment.

Many companies are challenged by cumbersome processes to reschedule production plans, high inventory and capital tied up in stock, low level of automation, no simulation possibilities and a lack of overview and a lack of one common production plan.

Cases

Absolut company
An increased production complexity made The Absolut Company look for a better and more efficient way to manage the production of the most exported food and beverage product in Sweden. With the purchase of the company from the Swedish government in 2008, Pernod Ricard initiated a transformation of the brand. This had a large impact on the manufacturing process. Check out the case here.

Orthex company
Orthex  Group,  a  leading  manufacturer  of  household  products  in  the  Nordic, operates in a sector where the customers have high demands on short lead times and on-time delivery. When unexpected large orders are common and the company growth  increases Supply Chain complexity, it puts pressure on the production planning process and the planners involved. By implementing technology Orthex has been able to take a big step towards 100% planning control Check out the case here.

Understanding inventory optimization is key if you want to optimize your Supply Chain with technology. In this blogpost we will look into the details.

Today’s consumers demand more options and greater variety. Trends change quickly. The result is that companies are carrying more slow-moving items with irregular, intermittent demand patterns. Traditional ABC inventory planning, developed in the 1950s, just doesn’t work in this world. Instead, we suggest to use inventory optimization software. It should use self-adaptive demand and inventory models to automatically define the optimal mix of inventory across the multi-echelon Supply Chain. That way you can achieve aggressive service level targets while minimizing inventory and reducing costs, at the same time. As a company you are able to manage slow-moving and intermittent demand items more effectively.

The model is highly reliable because of the proprietary analytical relationships between inventory and customer service levels, even for very slow moving and intermittent demand items. This allows the system to optimize even very large assortments, including products in the “long tail”, balancing inventories across different locations and different levels in the bill of materials (BOM).

Meet high service levels while minimizing inventory
Instead of creating a “one-size-fits-all” inventory mix within item groups defined by rudimentary classification criteria, the inventory optimization approach differentiates service and inventory targets across products, bill-of-materials levels, and distribution network locations to most efficiently meet desired customer service level objectives.

Free up working capital
By applying advanced modeling and artificial intelligence (AI) to optimize inventory at the individual SKU and location level, you are typically able to reduce overall inventory levels by 10-30%. Less money tied up in inventory means you have more cash available for better uses.

Inventory modelling
The inventory modeling technology is capable of eliminating the gross approximations of traditional inventory management, creating very reliable relationships between average inventory and service levels for each SKU and location. This allows the inventory optimization solution to define the optimal inventory mix across products and network to meet service targets at the lowest cost.

Service-driven optimization
Unlike ABC inventory planning, which has an operational perspective, service-driven inventory optimization centers on sales, marketing, and customers. It uses categories called ”service classes” that sales and marketing people can easily relate to. Then it optimizes every SKU-Location against a target service level for each service class. The end result is an aggregated service class goal with the lowest possible stock investment.

Multi-echelon inventory optimization (MEIO)
To truly serve the end customer, the entire network–from raw materials suppliers and factories through distribution centers and wholesalers–needs the right items in stock. The technologies which we favor suggests optimal inventory levels at each stage of the supply chain, simultaneously balancing across multiple echelons, locations, and different Bill-of-Material (BOM) levels. It finds the most globally efficient balance between upstream and downstream inventory while optimizing safety stocks. It supports centralized demand planning, lowers costs across the Supply Chain, and streamlines operations.

Probabilistic forecasting
The probabilistic forecast provides the foundation for inventory planning, and helps manage the risk that comes from demand volatility by providing a range of possible values with their probability of occurrence. Advanced machine learning enhances traditional demand forecasts by modeling internal sources of noise and incorporating the effect of external data.

Understanding inventory optimization is key if you want to optimize your Supply Chain with technology.

If you want to know more about Supply Chain from an end-to-end perspective then you can always check out this online-brochure or download our whitepaper via the below link. 

 

Download now

1. Getting started with a modern approach to end-to-end planning

Understand the basics of end-to-end planning (whitepaper)
End-to-end Supply Chain planning is about bridging the gap between operations and business plans. It is also about staying in control. Check out and download the whitepaper right here. 

You can also read a shorter blog post on what Supply Chain planning is right here.

Do you also have unnecessary items in stock? (Trend report)
Did you know that every fifth item in stock is unnecessary? We made a report based on the 400 largest companies in the Nordics. Learn more about our findings and what you can do to ensure that this is not your company. You can download the report here.

2. Understanding more about the details

Understanding inventory optimization (blog post)
You can achieve aggressive service level targets while minimizing inventory and reducing costs simultaneously. Learn more about how right here.

How an end-to-end Supply Chain planning approach can benefit the business
Having an end-to-end Supply Chain planning approach can turn out to be a competitive advantage in the market. Though, to leverage your Supply Chain for a competitive advantage, it is important to utilize technology to add business value. In this blog post, we will share how it can benefit the business strategy.

Are you going to use a digital twin? (blog post and webinar)
Looking to learn more about a digital twin and how it can help you on your end-to-end Supply Chain planning journey? Check out these resources on the digital twin right here. You can also watch a webinar and read about SKF, who made a digital twin part of their core journey and won the Gartner Chainnovator Award in the Industrial Segment. Optilon supported them all the way – and still do.

Why ABC inventory classification is old school and not optimization (blog post)
ABC inventory classification has been around so long that most planners assume it’s the only way to segment inventory. In fact, it’s not. And it’s not even nearly the best way. Read more in this blog post.

Is the working relationship between operations and marketing an area for optimization? (blog post)
In many companies, the working relationship between operations and marketing is challenging. This is where technology within promotions planning can help.  Promotions planning is about bridging the gap between operations and marketing. Read more in this blog post. 

3. Check out these great cases:

 4. Get a brief product demonstration right now

This brief product demonstration explains the core capabilities of the service-driven planning software we provide with our partner ToolsGroup. The video also describes why it’s different and better than traditional planning solutions. 

It covers:

  • Demand modeling and forecasting
  • Promotions planning
  • Multiechelon inventory optimization
  • Replenishment
Get the product demonstration right now

5. Finding the right partner

Supply Chain organizations must rapidly assess new digital strategies and Supply Chain planning technology solutions to accelerate digital business. At the same time, they need to evaluate and identify automation opportunities while supporting organizational change. How do they stretch their organization’s current way of thinking and operating while simultaneously delivering on speed and flexibility? Get some fruitful advice in this blog post.

We are here to help you choose the right journey
Our engagement model shows you how we work together with our clients. We want to ensure that you get a humble, engaged, and committed solution delivery that solves your business challenges. Learn more about how we work right here. 

Are you heading out on your Sales and Operations Planning journey or have you already embarked on it? This ressource will provide you with lot’s of great content which hopefully can inspire you, to take your Sales and Operations Planning approach to the next level.

1. Getting the journey started

The basics of S&OP
Everyone has probably heard about S&OP, but do you really know what it is? In this blog post we provide you with the basics on S&OP. Read more here.

What value do you get from S&OP?
Like any other business initiative S&OP should be challenged on value impact. In this blogpost we would like to provide you with some insights. Read more here.

Digitalizing the S&OP process untaps further potential
The digitalized version of the S&OP process is recognized to further increase forecast accuracy, as well as reduced inventory investment and stable/increased service level. Read more here.

The myths and realities of Sales and Operations Planning
Chekcout this webinar which is a dynamic discussion of what S&OP is and is not. Listen or watch it here.

2. The details

Bring strategy back into S&OP
It is time to bring strategy back into S&OP. But how? Learn more in this webinar.

Your Supply Chain design checklist can be downloaded from the bottom of this page. Before you head down to that section, perhaps make a recap of the benefit’s of using advanced Supply Chain technologies for Supply Chain design first.

  • Make more automated decisions
    While most global Supply Chain-reliant companies have already embraced the power of data and advanced analytics across their company, the vast majority have been working with out-of-the-box tools cobbled together with in-house applications or spreadsheet-based solutions. Advanced technology can help the Supply Chain use mathematical solvers and algorithms to find the best decision or decisions for a given business problem within a defined set of constraints.
  • Quicker deployment to users in the organization
    Advanced technology offers the possibility of creating a personalized experience. With apps, you will be able to create a tailored solution with the appropriate user experience for anyone in the organization to facilitate democratized, AI-powered decision-making.
  • Gain proactive insights
    Leading companies can apply advanced technologies to fundamentally rethink and transform their Supply Chain, enhance their real-time understanding of activity in complex supply networks, and leverage continuous scenario planning to optimize the balance of cost against risk and agility of their network footprint.
  • Continually revisit the Supply Chain design
    In other words, by adopting new technologies and the practice of continuous design, companies can reduce risk, improve resilience, and turn their Supply Chain challenges into a competitive advantage. By applying advanced algorithms, companies can continually revisit and adapt to make the best decisions balancing profitability, service, risk, and sustainability.
  • Make faster decisions
    With an end-to-end extensible data model, AI, and rich algorithms, Supply Chain leaders can use simulations to quickly learn how to best respond to changing conditions. They can adjust scenarios and options in these models to identify which decisions best support agility and resilience. The best decisions require the right balance of profitability, service, risk, and sustainability.
  • Drive insights through relevant data
    Designing a Supply Chain that is both resilient and efficient while addressing increasingly complex and nuanced markets is challenging. Supply Chain will have to consider multiple dimensions: Proximity to custoer markets, diverse customer service requirements (including after sales service and reverse logistics), sources of rawmaterials, proximity to key suppliers and ecosystem partners, risks, regulations, customs, duties and sustainability factors.

Your Supply Chain design checklist can guide you to get off to a good start with your own approach to Supply Chain design?
The starting point for your Supply Chain design journey will always be your own Supply Chain challenges. Use the
following frameworks to become sharper on why it could be useful for you and your company to utilize advanced technologies within Supply Chain design. What kind of questions would be good to ask to become more specific on the use cases?

Checkout this chekclist which you can download right here:

Download the checklist now

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