Sales and Operations Planning

Get more out of your sales and operations planning process

S&OP Icon

Lack of executive support, poor organizational alignment and competing priorities often impede successful sales and operations planning (S&OP). With the Kinaxis® RapidResponse® S&OP application, you can evaluate, collaborate on and choose a sales and operations plan that most closely aligns with your corporate financial goals.

Because it is driven by a single system, the S&OP application can truly transform and mature your sales and operations planning processes. Here’s how:

  • All information is drawn from a single data model, allowing you to combine supply and demand planning, volume and mix planning, and long-term and short-term planning.
  • With everyone working from the same data source, collaboration across multiple functions including demand planning, supply planning, finance, sales and marketing occurs more naturally.
  • Process templates and task flows guide users through their specific activities and help ensure all parties adhere to the timelines and dependencies associated with the cross-functional processes in S&OP.
  • Various stages of the S&OP process can occur concurrently and continuously to improve the efficiency of the process and ensure the current S&OP plan reflects most recent decisions and developments.

ADDED VALUE THROUGH INTEGRATED APPLICATIONS

One of the greatest advantages of RapidResponse applications is that you can deploy any of them  alongside other applications as part of a broader, integrated solution.

Depending on your organization's needs, you can achieve significant added benefits by using the S&OP application with one or more related applications to ensure synchronization across interrelated planning processes. By implementing the S&OP application, you can gain broader value and competitive advantage by using it with connected applications such as (but not limited to):

Second Consecutive Leadership Placement for Kinaxis in Gartner Magic Quadrant for Sales and Operations Planning System of Differentiation

T. Payne; May 1, 2017

Gartner defines a sales and operations planning (S&OP) system of differentiation (SOD) as a software solution that provides technology support for a Stage 4 or higher maturity S&OP process.

According to the Gartner report: "Leaders have a strong vision for their S&OP SOD capabilities. They recognize the role they will need to play in enabling the move toward multienterprise horizontal planning allied with vertical integration that links strategy to operations and execution. They are looking at developing analytics to support probability-focused end-to-end predictive and prescriptive analytics to support profitability trade-offs and supply chain design and configuration capability. 1

1 Payne, T., Magic Quadrant for Sales and Operations Planning Systems of Differentiation, Gartner Inc., May 1, 2017

Disclaimer:
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner Magic Quadrant for Sales and Operations Planning System of Differentiation

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Kinaxis.

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Benefits

RapidResponse applications are based on best-practices and standard process flows established by our years of successful deployments at a multitude of world-leading manufacturers. The out-of-the-box S&OP application enables quick implementations and acts as an advanced starting point for a tailored solution that meets your company’s unique sales and operations planning needs. It accomplishes this through:

  • Faster and more reliable plan development, drastically reducing the sales inventory operations planning cycle, while producing more accurate results
  • Increased consensus and fewer surprises, producing viable plans that have been contributed to and vetted by stakeholders
  • Clearer, quicker insight into the impact of changes to the S&OP plan on operations, and conversely the impact of changes within a given function of the business on the S&OP plan
  • An ability to scale and mature the S&OP process to maximize business opportunities and minimize risks

Functional capabilities

The sales and operations management application offers many capabilities, including the ability to:

  • Set financial targets and acceptable levels of variability
  • Measure progress against those targets
  • Identify gaps between the consensus demand plan and aggregate supply plan, and re-balance by changing or “shaping” the forecast demand in such a way as to be achievable
  • Evaluate multiple supply-demand balancing scenarios against various company metrics to enable optimal trade-offs
  • Enter and maintain S&OP assumptions

S&OP Process Calendar

S&OP Process Owner Gantt

Managing PerfoRmance

The following standard metrics are included in the S&OP application's out-of-the-box dashboards, allowing for focused management of the performance measures most applicable to the function at hand:

  • Ending Inventory Value – summary of the value of the projected inventory at the end of each period
  • Margin Percent – summary of the difference between revenue and cost of goods sold, by period
  • Revenue Value – summary of the revenue for actual orders and forecast, by period
  • On-Time Delivery to Request – historical and projected percentage, by period, of order lines available on or before their request date
  • Key Constraint Utilization Percent – summary of actual load, by period, expressed as a percentage of the available load for key constraints

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Sales and Operations Planning Process Components

The following graphic illustrates the out-of-the-box S&OP application process. This process can be tailored to meet your company's specific business needs.

S&OP Process

Supply Planning Customer Quote

S&OP data customer quote

S&OP Scenario Planning Customer Quote

S&OP Scenarios Customer Quote

Reducing SCP Cycle Times Customer Quote

Sales and Operations Planning Customer Quote

End to End Supply Chain Planning Customer Quote

Supply Chain Analysis Customer Quote

supply chain planning system of record customer quote

Fast Supply Chain Planning Customer Quote

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Supply Chain Insights 5 Key S&OP Technology Capabilities

Supply Chain Insights - 5 Key S&OP Technology Capabilities

Ventana Research Integrates Demand, Supply and Financial Information

Ventana Research - Integrates Demand, Supply and Financial Information

Kerry Zuber Supply Chain Plan Variance Risk

Kerry Zuber - Supply Chain Plan Variance Risk

Kerry Zuber S&OP and What-if Simulations

Kerry Zuber - S&OP and What-if Simulations