Sales and Operations Planning (S&OP)

Expect More from Your Sales and Operations Planning Process

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Evaluate, collaborate on, and choose a sales and operations plan that most closely aligns with corporate financial goals.

Because it is driven by a single system, the S&OP application can truly transform and mature your S&OP processes. 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. And, process templates and task flows guide users through their specific activities and help ensure that 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.

Tailored for Your Business

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 also acts as an advanced starting point for a tailored solution that meets your company’s unique needs.

ADDED VALUE THROUGH INTEGRATED APPLICATIONS

One of the greatest advantages of any given RapidResponse application is that it can be deployed alongside other applications as part of a broader, integrated solution.

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

  • Demand Planning
  • Aggregate Supply Planning
  • Capacity Planning (Constraints)
  • Inventory Planning & Optimization
  • Inventory Management

S&OP Related Applications

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Benefits

  • Faster and more reliable plan development, drastically reducing the sales and 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

  • 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 %—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 %—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

Gartner Magic Quadrant for Sales and Operations Planning (S&OP) Systems of Differentiation (SOD) T. Payne; April 29, 2015

Gartner defines a sales and operations planning (S&OP) System of Differentiation (SOD) as a software solution that supports a Stage 4 or higher-maturity S&OP process.

According to Gartner, “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 focused on developing analytics to support end-to-end profitability trade-offs and configurable supply chain design and configuration capability.”

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. 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 here.

Supply Planning Customer Quote

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S&OP Scenario Planning Customer Quote

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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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TriQuint Multi-Scenario Planning for S&OP

TriQuint - Multi-Scenario Planning for S&OP

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