IBP unites volumetric and financial information into one flexible planning and decision support process over operational, tactical, and strategic planning horizons. Everyone gets reliable answers faster. Forecasts and capacity plans become more accurate and synchronized.
Alerts highlight plan deviations. Lag time drops. Trust improves. Excess inventory and obsolescence drop as your long-term planning is done with confidence. This is a win-win for everyone.
Another key to reaching higher levels of S&OP Maturity is consistently getting all key company functions to the table and holding efficient and effective executive S&OP planning meetings.
- Try to make executive S&OP meetings part of the agenda or adjacent to already existing meetings to minimize conflicts across time zones and potential travel.
- Ensure reports and metrics are at the right level for the audience. This usually means that data is compatible with what executives are used to reviewing at a P&L level and represented at the business unit, geography, or company level.
- Only discuss opportunities and risks that are at a significant level, such as big dollar items, significant labor decisions, and important decisions involving partners. Define what should be considered significant.
- Provide a good mix of numerical and graphical balanced and aligned volumetric and financial views. More advanced processes may be able to adjust these views on the fly as what-if questions are asked.
- Prepare and facilitate well to ensure all critical decisions are made and a consensus plan is approved before the end of the meeting if possible.
Reaching the highest levels of S&OP Maturity requires an organizational-wide, multi-horizon, outside-in focus to create new customer and company value utilizing advanced analytics like “what-if” scenarios, simulations, and demand shaping.
Below, are the characteristics of stage 4 and stage 5 S&OP capabilities across six dimensions: outcome, process focus, organization, metrics, time horizon and technology.
Mature Sales & Operations Planning enables volumetric and financial multi-horizon planning that combines information from sales, marketing, production, procurement, distribution, and finance to create a powerful decision center for all stakeholders. By removing organizational and technology barriers and aligning and synchronizing plans, advanced S&OP ensures your business plans are rooted in feasible supply chain network capabilities, with resources and investments deployed where they are most effective in achieving business goals.
And possibly even more important today, having an end-to-end view of the business enables greater agility so you can respond faster and make better decisions when faced with supply chain disruptions and opportunities.