When conquering emerging markets, sales and operation planning (S&OP) is more important than ever.
Internel’s S&OP experts can boost your response capabilities to help you gain competitive advantage.
The competition to capture emerging markets is fierce. Though teeming with fast, exciting sales opportunities, emerging markets also have the most demand volatility. This is the major production and cost challenge for goods manufacturers. With one wrong step, you risk overstocked, undersold and destroyed product lines.
Emerging markets today mean fierce competition. In these heightened circumstances, some manufacturers and distributors try to gain a quick short term advantage over the other.The co-operation is often plagued by mistrust: manufacturers using sophisticated techniques for planning their internal management are afraid that the distributors will eventually work with a competitor, exclude them from joint planning, analysis and sharing sensitive data and consequently, use antiquated methods for managing distributors. Sales forecasts, budgets, purchase plans, price changes – are ‘passed on’ to the local distributor manually and sporadically. Instead of working collaboratively online, they use telephone conversations, e-mails and inefficient personal meetings. It’s a one-way street, with information moving only from distributor to manufacturer. This situation is disastrous in emerging markets where local knowledge, speed and costs are critical.