Professional Documents
Culture Documents
Sales & Operations Planning
Sales & Operations Planning
OP
Presented
by
S&
OP
Introduction
Why S&OP
Objectives
Data Flow
Reconciliation
S&OP Input
S&OP Output
Modus Operandi
S&
OP
Statement of
intent
S&
OP
S&
OP
S&
OP
S&
OP
Customers are demanding:
Supply/Demand
Forecasts
Cycle time
Stocking policies
VMI/SMI processes
Replenishment
S&
OP
FINANCIAL
PLANS
BUSINESS
PLANING
NEW PRODUCT /
ACTIVITIES
MANAGEMENT
DEMAND
CREATION
CREATIVITY /
TECHNOLOGY
SOURCING
MANAGEMENT
DEMAND
PLANING
OPPORTUNITY
ANALYSIS &
SELECTION
SUPPLY
POINT
STRATEGIC
STRATEGIC
MANAGEMENT
PLANS
PLANS
SALES
STRATEGIC
STRATEGIC
PLANING
PLANS
PLANS
STRATEGIC
STRATEGIC
RESOURCE
PLANS
PLANS
MANAGEMENBT
SUPPLY
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS
DEMAND
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS
SUPPLY
MANAGEMENT
STRATEGIC
CAPABILITY
DISTRIBUTION
LOGISTICS
STRATEGY
PROJECT &
S&
OP
FINANCIAL
PLANS
BUSINESS
PLANING
NEW PRODUCT /
ACTIVITIES
MANAGEMENT
DEMAND
CREATION
CREATIVITY /
TECHNOLOGY
SOURCING
MANAGEMENT
DEMAND
PLANING
OPPORTUNITY
ANALYSIS &
SELECTION
SUPPLY
POINT
STRATEGIC
STRATEGIC
MANAGEMENT
PLANS
PLANS
SALES
STRATEGIC
STRATEGIC
PLANING
PLANS
PLANS
STRATEGIC
STRATEGIC
RESOURCE
PLANS
PLANS
MANAGEMENBT
SUPPLY
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS
DEMAND
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS
SUPPLY
MANAGEMENT
STRATEGIC
CAPABILITY
DISTRIBUTION
LOGISTICS
STRATEGY
PROJECT &
S&
OP
Objectives of
S&OP
Consensus on Managing Gaps.
Greater accountability of individual plans.
Determination of resource capacity needed.
Achieve the business plan, and guide strategic thinking.
Ensure that operating and financial plans are integrated,
realistic and synchronized.
Create ONE company game plan / single set of numbers.
S&
OP
Integrated Data
Process is designed to facilitate two way
Flow
communication throught the supply chain
NPI Report
Allocation Decisions
Business Decisions
Policies & Guide lines
Approved Demand
Statement
Safety stock
recommendation
Commentary
In f
o rm
at i
on
Manufacturin
g
Planning
Marketing
Affiliates
ack
db
Fee
Capacity Constraints
Master Replenishment
Schedule
Inventory Management
Commentary
Divisi
on
Approved Supply plan
Master Arrivals
Schedule
Approved Safety stock
S&
OP
Supply Planning
Process
FINAL
S&OP
MEETING
Gap
Analysis
Strateg
y
SUPPLY
REVIEW
Assessment
Accountabil
ity
Issues
Vulnerabilit
y
Demonstra
ted
Performan
ce
Supply
Manager
Alternate
Plans
Impro
veme
nt
Supply
Assumpti
on
STRATEGY
BUSINESS
PLAN
PERFORMANC
E
Integration & Financial
Reconciliation
DEMAND
REVIEW
NEW
PRODUCT
INTRODUCTI
ON REVIEW
FINAL
S&OP
MEETING
S&
Supply Review
OP
SUPPLY
REVIEW
STRATEGY
BUSINESS
PLAN
PERFORMANC
E
Integration & Financial
Reconciliation
DEMAND
REVIEW
SUPPLY MANANGEMENT
Strateg
y
Demonstrated
Performance
Internal & External
Supply Chain
Seasonality Pattern
Improvement Plans
Flex Potential
Hedging Strategy
New Product Phase
In/Out & Change Activity
Un-Constrained
Forecast
Assumption Vulnerability
& Opportunity
(Upside/Downside)
1. Communicate &
Coordinate
2. Review issue &
options
Material
Capacity
Hedging
What if
Assumptions
3.Performnace
4.Change and Impact
5.Present alternatives
with Implications
Alternate Supply
Chain
Issues Arising
& Resolve
Proposed Plan
NEW
PRODUCT
INTRODUCTI
ON REVIEW
S&
OP
SUPPLY
REVIEW
FINAL
S&OP
MEETING
INTRODUCTI
ON REVIEW
Agenda for
Management
Review
Latest view
Vulnerability
Opportunity
Out Come of
What if
Scenario
Gap
Identified Vs:
Annual Plan
Strategy
Performance
Decision
Required
S&
OP
S&
OP
S&
OP
S&
OP
Focus on what is
changing
S&
Role Of S&OP Task Team
OP
S&
OP