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SALES AND OPERATIONS PLANNING (S&OP) A PERFORMANCE FRAMEWORK by Scott C Ambrose Despite a robust body of practitioneroriented literature focused on the importance of balancing customer demand with product supply within companies, there is very little empirical research suggesting how to achieve it Sales and Operations planning (S&OP) is a tacticalS&OP is a key component of Connected Planning and a very good place to begin They both aim to use data to harness the true potential of businesses to drive growth If you're not sure what Connected Planning is or why it's important for your organisation, then make sure to contact a member of our team today S&OPTop content on Demand Planning and S&OP as selected by the Supply Chain Brief community

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S&op planning is usually done by

S&op planning is usually done by- S&OP is a never ending recurring business planning process that often operates in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world and is impacted by continuous internal or external threats and challenges For S&OP to run effectively, you need to be clear, focused and committed to what you're trying to achieve You need to have the right state of mind, rise to any Sales and Operations Planning (S&OP) A integrated business process that drives collaboration, focus and alignment across multiple divisions and departments in a company 5 • Demand plans • Financial goals • Supply plans • Inventory quantities • New product plans S&OP brings together Inventory 6

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 S&OP – Planning Worksheet 66 S&OP – Information Flow S&OP Spreadsheet Demand Information Supply Information Summarised by family, sub family, by month, In lbs Order fill % Shortages KPI Actuals Prod Pln KPI Forecasts Actuals Util % OT Inventory Ad To Plan Capabilities Outages Constraints Production Distribution Inventory Issues Orders Shortages Issues OrdersQuestion S&OP Planning Is Usually Done By This problem has been solved!S&OP is a strategic business process, and there are building blocks, such as organization, incentives, people and technology, critical to making it effective A traditional S&OP process involves internal company stakeholders from different disciplines—typically operations, sales, marketing and finance—to anticipate and synchronize demand and

Sales and operations planning is an aspect of supply chain planning whose goal is the creation of a unified, consensusbased business plan It draws input from an organization's key functional areas, including sales, marketing, manufacturing, distribution, and finance Crossfunctional collaboration results in plans that all stakeholders understand and are committed to supporting S&OP plans are reviewed by product family, using the common unit of measure This provides a consistent communication base across all functions and entities;A) S&OP is also called an aggregate plan B) S&OP is used to determine which plans are feasible in the coming months and which are not C) S&OP is typically done by crossfunctional teams that align competing constraints

Sales and Operations Planning (S&OP) A process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business Designed to coordinate activities in the field with the manufacturing and service functions that are required to meet demand over time A process The (S&OP) process consists of a lot of leg work to support the three main meetings Pre S&OP Demand, Pre S&OP Supply, and the S&OP meeting itself (OK, some companies have a fourth one The Executive S&OP meeting) The whole process is designed to allow a company to make the best possible plan for the future based on current estimates, as well as prepare for certain contingencies via whatif scenario planning However, things do Sales and Operations Planning (S&OP) Sales and operations planning (S&OP) is a business management process where leadership and executive teams meet to ensure each business function is aligned to balance supply and demand S&OP requires crossorganizational collaboration to create detailed forecasts for predicted sales

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3 future challenges in Supply Chain planning and S&OP (Part 3) The study highlights the outstanding role of a companywide integrated Sales & Operations Planning process as a driver for sustainability, customer orientation and profit maximization Therefore S&OP is an increasingly important element of strategic and operational corporate management It is of particular interestTop content on S&OP, Sourcing and Supply Chain Planning as selected by the Supply Chain Brief communityInput to S&OP process is demand plan, inventory, capacity requirements and supply constraints The owners of the process than churns out and identify requirements for material procurement, capacity investment, man hours, estimated revenue, subcontracted capacity requirement etc An efficient and collaborative S&OP process is one of the most important pillar of planning process

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 S&OP is a structured monthly process that aligns all functional areas under a unified set of assumptions to enable and coordinate decision making It integrates demand, supply, operations, and financial planning into one game plan for businessTo accomplish the demand and supply balance Sales and Operations Planning Steps to S&OP There are two distinct phases to S&OP 1) process design, and 2) process conduct In the design phase, all of the technical workings are engineered, and in the conduct phase S&OP is used as a business management process The following 10 stepsThe S&OP planning process should always be built on a realistic foundation, as the base line determines the trustworthiness of the S&OP plan That is why the operational plan should integrate towards IBP for S&OP (preferably via HANA Cloud Integration, HCI) HCI allows you to integrate data from your legacy system to IBP for S&OP applying translation rules for both master data and

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Sales & Operations Planning is the process by which we bring together all the plans for the business (Customers, Sales, Marketing, Development, Manufacturing, Sourcing, and Financial) into one integrated set of tactical plans S&OP gives management the ability to direct its business to achieve a sustainable competitive advantageSales and Operations Planning (S&OP) is a corporate practice intended to deliver superior supply chain execution by leveraging a deeper alignment with other divisions beyond supply chain most notably sales, finance and production The practice usually revolves around a monthly process starting from the sales forecasts and ending with quantified A good executive S&OP process will have all these characteristics If it does, S&OP should be improving your demand plan If it doesn't, now is the time to get the process tuned up and break out of the OS&P cycle Contact us to find out how DBM is a global thought leader with over years of S&OP consulting experience

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Foreseeing the future is thought to be impossible;The planning horizon for S&OP usually extends between 6 and 18 months into the future with the 12 month mark as the average, coinciding with financial budget cycles (Wallace & Stahl, 08) The process is generally implemented using some semblance of the steps described next (Grimson & Pyke 07;JDA Sales& Operations Planning (S&OP) helps in taking a crossfunctional approach to integrated business planning that unites all the moving parts across a supply chain with a shared focus to meet demand across markets, with an eye on both immediate and longterm strategic goals When risks, opportunities or threats interfere with strategic

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