S&OP

Sales & Operations Planning (S&OP)

Definition (World Class S&OP, DH Sheldon)

  • a monthly planning cycle where plans for both customer expectations & internal operations are reviewed for accuracy, process accountability, lessons learnt, and future risk management.
  • Plans are monitored, updated at specific times, and reviewed predictably.
  • Process owners are defined with clarify, top-management expectations & roles are clearly understood, and measurements are not only reviewed but are visible to the organisation for communications & synchronization purpose”

Expected Benefits:

  • Between demand & supply sides of the business – Significant improvements in communication & agreement on rules of engagement.
  • better customer service with less inventory & shorter leadtime.
  • Smoothing operations plan for better capacity utilisation and lower unit costs.
  • Improve accountability on large projects and new product implementation
  • Quicker identification of change required and more nimble reactions to market changes.
  • Lower risks that affects customer service.
  • Improved profitability.

THE PROCESS

Pre-Meeting Preparation  (as pre-read)

  • Incidents / Events affecting customer service  (ie. OTIF + stockout, Quality (incl. product/packaging quality, delivery timeliness) Issues
  • Sales plan (Customer Demand/Forecast/Promotions/Seasonal demand ie. Chinese New Yr, Ramadan, Summer/Winter/Monsoon Demand)
  • Production plan  (backlog clearance plan, plan supply resources, manpower OT)
  • Inventory plan (slow moving stock to clear etc)
  • Customer lead time plan (any changes in customers expectations, urgent orders, tenders)
  • New product development & introduction plan (new CVPs/Labels(MUvsSBK/Carton designs) & product withdrawal
  • Strategic initiative plan (ie. new filling line)

Meeting Agenda

  • Incidents / Events – determine Root Causes
  • Variations to sales plan
  • Changes to supply & production + new products timing
  • Existing & New Risks & Mitigation Actions on Pre-Read items
  • Output
  • Actions on Incidents / Events affecting customer service
  • Changes in agreed sales
  • Changes in previous plans
  • Future actions and anticipated results
  • Decisions to balance supply & demand  (ie. urgent orders)

Attendees

  • Chairman – sets agenda, invite participants
  • Sales / Marketing Rep
  • Customer Service Rep
  • Production & Planning Rep
  • Facilitator (timekeeper, minutes taker)

 

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