Sales & Operations Planning

The Case for Sales and Operations Planning (S&OP)

Higher customer service, lower inventory, shorter lead times, increased flexibility, increased production productivity, and more focus on business strategy; these benefits are real for those companies who take an aggressive and strategic view toward not just implementing S&OP but making it part of the way they run business.

Approach

For those of you who are at a point where you need to build S&OP from scratch; assess and improve your current S&OP process; or take your current process maturity to the next level, SCE provides coaching configured to the level of support you need.

The Supply Chain Excellence approach utilizes a train / apply / review technique integrating formal instruction, guided practice, and independent “homework” assignments. The project work follows the 13 step discipline as detailed in Chapter 11 of the book, leverages the Wallace & Stahl, Sales and Operations Planning text, and is summarized in these major phases:

Phase 0   Build Organizational Support
Phase 1   Define the Project Scope
Phase 2   Complete Detailed Process Design
Phase 3   Conduct Pilot Cycle 1
Phase 4   Conduct Pilot Cycle 2
Phase 5   Develop Implementation Plan and Roll Out Process

Typical Project Deliverables

Typical project deliverables are:

  1. Executive S&OP Briefing and Go / No Go Decision
  2. Project Charter and Pilot Scope
  3. Demand, Supply, and Product Hierarc
  4. Leading Practice Assessment
  5. S&OP Policy
  6. Demand, Supply, Reconciliation, and Senior Leadership Review Process Flows
  7. S&OP Spreadsheet including Forecast, Capacity, Inventory, and Financial plans
  8. Pilot Plans
  9. Technology Requirements
  10. S&OP Pilot Calendar
  11. Implementation and Roll Out Plan

Company Resource Commitment

Resources that should be provided are:

  1. Executive sponsor
  2. Steering team – champions of implementation
  3. Project leader
  4. Project team – process and content experts

Typical Project Schedule

Month 1
Build Organizational Support
Planning and Organizing

Month 2
Detailed Process Design

Months 3 and 4
Pilot Cycle 1
Pilot Cycle 2

Months 4 to 12
Implementation Planning and Process Roll Out

More Information

Each Supply Chain Excellence S&OP Project is configured using a Statement of Work (SOW); if you are interested in more information about how this service may support your company, please contact Peter directly.