An organization’s Sales and Operations Planning (S&OP) process should be a clear, decision-making process and improve business processes, not be a drain on resources with no results.
Get a clear pathway to success that is tailored to your current organization’s Sales and Operations Planning state. Whether you have a mature process or need a clear foundation to begin, start with the S&OP Assessment to drive results.
Based on 35 years of consulting expertise, DBM Systems consultants have been helping businesses run their processes more effectively. The S&OP Assessment is based on the assessment used with past clients to help client improve their process through the S&OP Accelerator.
There are eight critical criteria that are the benchmark for an effective S&OP process:
S&OP should deliver results like improved customer service, reduced expedited freight, right-sized inventory. Before you get results, you need to make sure you are doing the right things (a good process) and the right things are being done right (effectively).
The S&OP process pulls data from your ERP system. Note: If the data is bad, S&OP should highlight that a data clean-up needs to happen. Actual historical data (bookings, shipments, aged backlog, production) is used to evaluate the performance to plan.
Responsibility and Accountability
Accountability (who the executive is expecting to deliver the results) and responsibility (who has to get it done) for the plan is clearly defined and documented.
The person running the business uses the Executive S&OP meeting as a critical management meeting. They attend and/or run the meeting, hold the team accountable, and sign off on the S&OP plans.
The monthly process is regular and purposeful: a plan is created, then executed, results are assessed, then next month, the plan is redone or adjusted. The monthly cadence supports accountability and forward planning across the planning horizon.
Since S&OP is a forward-looking process, it needs to support planning far enough out in the future to support both execution and strategy.
The business is segmented into the right elements to support decision making. All the decisions (flow rate, buffers, accountability) are set by family.
As the culmination of the monthly process, the Executive Presentation – where the decisions are being made – is where the executive intersects with the process (prior to this being run by other resources). The structure and format must provide a clear “story” for the business (by family) in the past, present and future with supporting data.
We have helped our clients effectively implement change through the S&OP Accelerator. Using the S&OP Assessment as a key to measure results, our clients have seen how they have progressed to a successful and sustainable S&OP process.
Here are some kind words from our past clients:
"I can't say enough about the results. The process change was immediately accepted and has become one of the pillars of our management activities. Your assistance in re-launching our S&OP process has permanently changed our business for the better."
Vice President Supply Chain
Use the S&OP Assessment to see what you can do to achieve an effective process in your organization: