5 Ways AI Can Optimize Your S&OP in 2022
Robin Hornung - March 22, 2022

As we embrace 2022, supply chain volatility remains top of mind for most executives. The ongoing pandemic, surging inflation, global conflicts, and climate disasters are increasing the complexity of S&OP. With an inherently unpredictable manufacturing environment, companies need to adapt to rising prices and develop flexible operations plans. It is now more important than ever to establish a resilient S&OP plan to help mitigate revenue loss and adapt to changing plans in real-time.
To achieve this, more and more companies are relying on advanced data analytics and AI-enabled software tools to continuously learn from their data. Instead of having AI replace existing jobs, these solutions can aid in high-level decision-making, allowing companies to improve their response to volatility. Companies can now mine existing data to improve their S&OP, adapt to changes, and increase the bottom line, all with AI tools integrated at multiple levels within software solutions.
5 AI Tools Powering flexis S&OP Solution
1. Sales Forecasting
Predicting sales is an essential step of S&OP and defines ordering and inventory levels across enterprises. Accurately predicting sales can help companies prevent product shortages or sunk capital sitting in warehouses waiting to be purchased. AI-enabled sales forecasting uses existing company data to predict future sales more accurately. Plus, the software is constantly improving to optimize its algorithm, becoming better over time as it learns from real-time data.
2. Intelligent Ordering
Within the S&OP solution, companies can manually adjust their ideal inventory levels. Then, the software can automatically order parts and supplies required to maintain the inventory objective. The software supports the challenging and crucial task of ordering by automatically generating order suggestions. An analyst or dispatcher can then perform any necessary adjustments and final checks before placing orders.
3. Pooled Ordering
With AI-enabled ordering, companies can automatically generate order pools to support the overall S&OP plan. Sharing supply chain assets can help reduce manufacturing costs and a company’s carbon footprint. AI-enabled S&OP software can help streamline the generation of order pools to make the entire process simple and intuitive.
4. Data Management
To make the most out of AI, companies need to collect and analyze real-time data. With AI-enabled data management, companies can automate the process of data normalization, aggregation, and integration into the S&OP solution. Better data means better AI-driven solutions.
5. Sustainability
With AI-enabled S&OP, sustainability goals can be achieved at multiple levels. For example, AI can help reduce waste in the supply chain, optimize transportation routes, and even shift product mixes to prioritize sustainable products like hybrid vehicles. This extends the many ways S&OP can support sustainability objectives across enterprises.
Use AI to Drive Your S&OP with flexis
In the past, production programs were often optimized for easy-to-sell products, often to the detriment of both profit and supply chain stability. With changing legal restrictions on the product wholesale mix and constantly evolving environmental targets, a planner’s task is becoming increasingly complex. Within a turbulent global landscape, planners now need to replan under constrained conditions nearly every day. To use AI to help reduce the strain on planners and improve the bottom line, companies need to fundamentally shift their AI methods to meet the needs of modern S&OP. This is where flexis solution is meeting market demand.
By principle, AI is constantly improving, using input data to optimize algorithms and provide more intelligent solutions over time. The flexis S&OP solution is continuously developed to better support company needs as the world evolves to shifting supply chains. With AI integrated throughout the software, flexis S&OP provides a robust solution capable of responding to the modern challenges of manufacturing in 2022.
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