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The O8 methodology is built on some key principles:

• Plan stocks at dis-connect points in the supply chain mathematically
• Link stocking policies to product strategy and service goals
• Extend S&OP processes across the supply chain & include inventory planning
• Use demand pull principles to replenish stock levels
• Focus planning resource on exceptional promotions, life-cycle management & operational exceptions

These principles are delivered by:

• Using forecast volumes to understand capacity requirements, not to place date specific orders
• Segmenting the product range based on demand patterns to apply the correct management technique
• Use multiple replenishment processes in an automated manner – not just MRP
• Implement the Oper8 planning system to support monthly re-planning process, give greater life-cycle management control, capacity plan the supply chain & run the replenishment process where required to deliver the S&OP plan
• Use the Collabor8 portal to measure performance
  and share information across the supply chain