The Application Of Sales And Operations Planning (S&OP) In EMS Manufactures

For cost reduction and centralized resource to enhance core competitiveness purpose, more and more original brand manufacturers (OBM) has outsourced their product manufacture business and R&D to EMS (Electronic Manufacture Service) suppliers which has the scale advantages in the market. In the meantime, China’s huge market potential attracted numerous large multinational companies as thick as hail, in order to better serve the top original brand manufacturers, international large EMS manufacturers also have come to China. At the same time, China’s EMS enterprises get good development and expansion. China has moved quickly to become the world’s biggest electronics manufacturing rendezvous.Complex market environment and fierce competition pattern request EMS enterprises must have rapid response ability and excellent operation management ability. However EMS enterprise existing problem of supply and demand imbalances always bothering EMS enterprise management. Due to the sales and operations planning (S&OP) can effectively solve the contradiction between supply and demand and get outstanding performance, more and more enterprises starts to study S&OP.This paper is based on the data from various contradictions and problems solving which using S&OP process in author’s company-Hi-P group in the past8years. This paper describe the concept of FI-S&OP (Sales and Operations Planning:Using Financial Analysis) and how to use FI-S&OP to achieve company strategy, especially introducing the financial analysis in each stage of S&OP process. In the last, Hi-P group is selected as a sample for study. The paper introduces and summarizes the experience from Hi-P’s S&OP implementation.