5 Things We Learned About the S&OP Process

The_New_Way_to_SandOP.jpgAs a 360 degree integration tool between all functional departments, sales and operations planning (S&OP) is the operational blue‐print of the organization for profitably matching supply and demand. It brings functional silos together to develop a cohesive set of plans to deliver maximum value to the customer at the lowest total cost.

While effective in theory, putting S&OP into practice can be challenging for many organizations. And although S&OP pertains mostly to manufacturing facilities and tangible products, it can have significant impacts to service industries as well.

In our webinar, "The New S&OP" we learned about proven, innovative techniques to implement an effective S&OP process and advance supply chains at multi-layer company environments.

Here are five things we learned about the new S&OP process...

 1.  S&OP is the activity for effectively balancing demand and supply on a regular and formal basis. It's an integrated business management process led by top management on a monthly basis to:

  • Evaluate and revise  projections for supply and demand
  • Align and synchronize all functions of the organization
  • Make informed decisions that focuses on future actions and anticipated results
  • Support the business plan  (execution of the company’s strategies)
  • Piece together a cohesive puzzle

 

2. S&OP serves two purposes:

  • An “umbrella” process that serves as a link between the strategic and business plans through the detailed planning and execution systems via the company ERP System.
  • A regulator for all other business plans, including the setting of master production schedule or global supply plan, inventory investment and commitment of resources.

 

3. The S&OP process is...

  • STRATEGIC - Sets the direction for the company
  • TACTICAL - Turns strategy into reality, builds projections and budget
  • OPERATIONAL - Deals with the day-to-day routine, in an organized manner in order to effectively achieve the plan

 

4. S&OP can allow you to become and remain on the cutting edge by  creating a culture that drives a relentless pursuit of perfection. 

SandOP_Results.png

 

5. S&OP is your FRIEND and can be your organization’s road map to success.

  • Fundamentally sound
  • Readiness review
  • In-depth analysis
  • Evaluate each approach
  • Navigate through each problem
  • Demonstrate common sense solutions

 

For more information about S&OP, download the webinar slides:

Download e-Book

 

Posted by LeanCor Consulting

LeanCor Consulting is a division of LeanCor Supply Chain Group. Today’s complex supply chains require vision, strategies, and innovative techniques to create competitive performance. LeanCor Consulting is a trusted partner for advancing end to end supply chain performance through diagnostics, assessments, and full implementation. Global organizations leverage LeanCor Consulting to develop vision and strategy deployment plans for improvement in all supply chain functions. We focus on elements of speed, cost, quality, and delivery, and are able to develop innovative solutions from operational experience as a third party logistics partner.

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