Sales and Operations Planning (S&OP)

Sales & Operation Planning is the vehicle for communication, performance measurement, planning, and decision making related to balancing supply and demand to meet company objectives. It links the firm’s strategic objectives with operational execution. S&OP is not the detailed underlying supply chain planning processes such as forecasting, demand planning, supply planning, etc., but rather the inter-departmental coordination and planning layer which combines these processes over a longer time horizon. S&OP focuses on medium to long-term planning, and focuses on product family level discussions. It usually consists of a series of monthly meetings that review the product portfolio, achieve consensus on demand, determine supply constraints, production, and inventory plans, resolve imbalances between supply and demand, and escalate issues to executive levels that cannot be resolved in prior meetings. Most importantly, the goal of S&OP is to review the overall supply chain plan through a financial lens to ensure all groups are targeting the same overall corporate goal instead of merely group goals.

Following are the specific S&OP service offerings provided by Plan4Demand:

Service Offering Value to Client
Business Process Assessment – These engagements (typically 4-12 weeks) render an understanding of the as-is business process, identify process gaps, produce a business case (ROI), and create momentum for change. They will also contain an overall project approach for the suggested next step or potential series of steps. These engagements do not contain results delivery, or “to-be” work. These projects aim to identify areas of opportunity and generate the business case (ROI) for change.
Business Process Design – These engagements would design a to-be solution and generate further momentum for change. They are appropriate when we have not done a standalone assessment (assessment would be built in), and/or further momentum is required in the client organization for them to commit to a large implementation. They do not generate results or implement “to be” solutions. Sample deliverables include; “to be” process designs, calendars, management system elements (e.g. KPI scorecards), and approach to supporting technology. They typically take between 8 and 16 weeks. These projects aim to design an optimized process that is scalable, repeatable and capable of delivering the anticipated benefits.
Business Process Implementation – These are potentially large complex change programs that implement a new supply chain process into one or more business units and typically contain some level technology enhancement. These projects aim to assist clients in implementing the process, deliver training, change management and knowledge transfer that is repeatable, sustainable and has demonstrated benefits e.g. reduced cash-to-cash cycle time, inventory reduction, increased customer service levels.
Continuous Improvement – These engagements are designed to assist clients with an existing supply chain process that is under performing or requires behavior modification to achieve the expected benefits. These projects aim to reinvigorate a stalled or stale process, as well as energize and educate the client team on the inherent business value of supply chain. This can include process redesign, change management, and /or KPI targeting depending upon the needs of the client.
Software Selection – While many clients know they need software, few understand how to evaluate and purchase it. Our breadth of knowledge across many solution sets, and our deep implementation experience make us uniquely suited to assist our clients in their software selection process. We offer services to help our clients develop their requirements, write their RFP (Request for Proposal), manage vendor demonstrations, evaluate proposed solutions, and develop implementation estimates – all from a “total cost of ownership” perspective. These projects focus on ensuring that the client efficiently and cost effectively navigate their way through the selection process. Tangible benefit comes in ensuring that the correct scope of applications is purchased, and at the correct price. Our involvement in these projects as translator and client advocate has saved or clients hundreds of thousands of dollars in the purchase price of their solution.
Technology Integration – While much of supply chain is about process and behavior, it does not work without a technology infrastructure to support basic requirements. Where appropriate, we will offer services ensuring the client’s infrastructure can be enhanced through technology to improve its effectiveness. These projects aim to assist clients in implementing with enabling technologies to support the S&OP process.
Key Performance Indicators (KPI) – Many organizations struggle with how to measure their effectiveness within the supply arena. There is constant pressure to lower inventories while maintaining a balance of customer service that those inventories are designed to support. Increasing market demands are driving companies to discretely define and justify their target inventory levels and the measurements that determine what inventory is “healthy.” Plan4Demand can work with these organizations to determine the proper inventory strategies by product line, location, and customer service level, then provide a suite of KPIs to support the early warning that the proper inventory levels are getting out of balance. Therefore, allowing the organization to utilize existing demand to pull them back into balance. These projects aim to drive inventories down overall, while specifically targeting excess and obsolete inventory reductions.