Sales & Operation Planning
An effective S&OP process is a powerful tool that our consultants can deliver for your business
S&OP (Sales & Operations Planning) is a process that harmonises the supply and demand plans of a business over the mid-to-long term horizon. In addition to bridging the supply and demand plans, S&OP also focuses on integrating financial reporting as well as encompassing market planning, new product development and business strategy.
S&OP is certainly not a new concept. S&OP as a business process has been widely deployed since the 1980’s. Whilst the original concept of S&OP focused on balancing supply and demand, i.e. sales and operations, it has now rightfully developed into a more comprehensive business-wide process incorporating financial planning and strategic direction and is now sometimes also referred to as IBP (Integrated Business Planning).
The best S&OP processes are designed from the ground up; they are designed by working alongside the stakeholders with consideration given to all the varying functional nuances of the business. It’s important to remember that S&OP is not about buying the right system as a first step and then designing a process around that system.
An effective S&OP process is about having a platform that’s bespoke to your business needs. Systems support can only become useful once the design has been deployed and tested and then the systems solution can be configured to that process. It should never be the other way around.
How our S&OP consultants can help your business
S&OP should be a simple process, that is fully understood by all stakeholders and fully engaged with by the Senior Managers. Very often existing S&OP processes become over-complicated and ultimately fail due to time constraints or a lack of engagement.
Our consultants have designed, fully implemented and managed S&OP processes for many major, multinational organisations. We can support you with the full design and implementation of S&OP or the auditing and improvement of an existing S&OP or IBP process.
We deploy a 5-step S&OP process
S&OP is a series of logical steps deployed each month to ensure that the functions within a business are all working towards the same goals. As a minimum, S&OP should be comprised of a 5-step process.
Read the objective of each of the 5 steps below
S&OP Portfolio Planning
The S&OP process needs to be based on an accurate reflection of the company’s product portfolio. Each month, as the first step in the S&OP process, the portfolio should be reviewed with the aim of flagging new product introduction, identifying delist requirements, adding new SKUs and updating ABC classifications. The reviewed and validated portfolio can then be used as the foundation for the next step, Demand Planning.
Latest S&OP Insights
Our Insights section is extensive and regularly updated by our consulting team. Our articles cover every aspect of supply chain management, including S&OP and IBP. For further information on our approach and thoughts on S&OP, read the selected articles below.
Contact Our Supply Chain Consultants Today
Our consulting team understand the power of a well designed and implemented S&OP process and we’re her to help you deliver. Contact our team today for an initial discussion on how we can help your business.
Call 0121 517 0008 or use the contact form.