S&OP for Business Orchestration

Have a Higher Expectation for Your Sales and Operations Planning Process

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Traditional S&OP, as a sequential step process, has proven to lead to ineffective and inefficient planning cycles that drive less than maximized value for the enterprise.

The original S&OP process, as has been implemented by many companies, is

  • primarily Operations led;
  • largely focused on satisfying revenue and margin goals;
  • carried out by trying to accurately predict demand for a discrete planning horizon (usually 6-24 months) and subsequently planning supply according to that prediction; and
  • involves isolated planning activities consolidated at a high level and then pushed up to management for approval, and pushed down to manufacturing for execution.

In the end it does not adequately address cross-functional issues or the need for S&OP activities to occur concurrently and continuously.

A horizontal S&OP process capability is required in order to achieve a transformation. In order to achieve effective S&OP process orchestration and alignment, companies need a single end-to-end S&OP solution that eliminates the latency in decision-making caused by the complicated integration of data from multiple supply chain software modules, and the manual number crunching performed in Excel.

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A different interpretation and expectation for S&OP is emerging that entails better, broader goals and fills the critical capability gaps that are currently found in most S&OP processes today.

A Competency in Adapting to Plan Variance

Increase the effectiveness and responsiveness of the S&OP process by driving it not as a fixed, stepped process from which to strictly execute, but rather as a strategic means of coordination and continuous synchronization of multiple functions into a unified supply chain response to both medium term goals and current, real demand.

Real Time What-if Analysis for Productive Tradeoffs

Ask (and answer) the right questions for the organization as a whole and make collaborative, conscious choices across competing objectives based on predictive and exploratory what-if analysis during both the planning and execution cycle.

Financial Impact Analysis to Drive Profitable Decisions

Evaluate and proactively manage the interplay between financial performance and operations performance to ensure the right tradeoffs are being made. Focus not only on developing an optimal plan, but a feasible and profitable one too.

An Information Layer for End-to-End Process Enablement

Develop an information and analysis systems layer that crosses organizational boundaries, planning levels, and time ranges that can, as a result, drive horizontal supply chain process enablement.

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The RapidResponse® Sales and Operations Planning application enables S&OP transformation because it is driven by a single system (with a single data model and user interface) that can offer:

Consolidated S&OP data and analytics
Integrate data from every division, location, department, product family, legacy system, and supply chain partner. View data at multiple hierarchies at any time to support specific, quick and collaborative what-if analysis. What-if versions of the entire sales and operations plan can be created in seconds and can be revised as needed during the S&OP review meeting. As part of a process template you can manage and maintain S&OP assumptions and annual plan targets.

Tight integration and alignment of all planning functions
Because you are drawing all information from a single data model, you can combine demand and supply planning, volume and mix planning, and long-term and short-term planning. Collaboration across functions (demand planning, supply planning, inventory planning, project management) can more naturally occur because you are working in concert from a single data source.

A means to accurately measure actions against financial targets and corporate objectives
Different S&OP scenarios can be directly evaluated against key metrics – both operational (such as on-time delivery, inventory turns, and capacity utilization) and financial metrics (such as revenue, margin, customer service and cash flow) – as a way to ensure operational plans are consistent with financial objectives.

Acceleration of both the S&OP process and the frequency of mid-cycle adjustments
Various stages of the traditional S&OP process can occur simultaneously. RapidResponse also enables continuous, event-driven S&OP, meaning that the state of the current plan is actively monitored, and the appropriate people are notified when the plan is at risk so they can take immediate action to course correct.

Role-based S&OP dashboards, workbooks and scorecards
Specific individuals and groups - sales, marketing, demand and supply planning, finance and executives - can have tailored views of S&OP so they can do analysis and make decisions in their own context. Executive review and approval is enabled using scenario scorecards.



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It is with this model of S&OP, whereby process execution evolves into operational orchestration; efficiency goals are coupled with measures of effectiveness; and cost control objectives are appropriately balanced with mandates for delivering business performance and value-based outcomes.

THE RESULTS?

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Faster and more reliable plan development. Drastically reduce the sales and operations planning cycle, and produce more accurate results.

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Clearer, quicker insight into the impact on operations changes, to the S&OP plan, and conversely the impact of changes within a given function of the business on the S&OP plan.

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Increased consensus and fewer surprises. Produce viable plans that have been contributed to and vetted by stakeholders.

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An ability to scale and mature the S&OP process to maximize business opportunities and minimize risks.

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

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Fast Supply Chain Planning Customer Quote

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TriQuint - Multi-Scenario Planning for S&OP

Supply Chain Insights - 5 Key S&OP Technology Capabilities

Ventana Research - Integrates Demand, Supply and Financial Information

Kerry Zuber - Supply Chain Plan Variance Risk

Kerry Zuber - S&OP and What-if Simulations