S&OP Business Process Overview

Supply Chain OUTPUTS

Process • Purchase Orders
Procurement, Production,
Warehousing, Logistics, QA (RM,PM, MRO,
DEMAND INVENTORY MRP and R&D CAPEX)
Requirement
(MPS) Purchasing • Production (Work)
• Sales Orders
BUY MOQ Orders
• Production Plan
Sales Inbound
Minimum Order Quantity

• Related Processes &

Forecast a) Materials
Reports (not exhaustive
• Current Inventory
• BOM
list)
Produce & Capacity - Procurement Contracts and
Deliver MAKE PPV
Planning
b) Resources - Production Planning and
Output
Sales • Materials required
- Quality Inspection and
Outbound • Production Order
Orders • Personnel (direct Safety Stocks BOM Updates
and indirect labor) - Warehousing and Logistics
SUSTAIN Level & movements
Quality - Supply Chain KPIs
- Product Total Delivered
Cost to Customer
- Headcount & Labor cost
- Inventory Ageing
- Damages & waste
 INVENTORY MANAGEMENT
Sales Production Quality and OVERVIEW
Purchasing Warehouse and Finance
R&D Logistics
Stock-In
Start Supply Production &
Purchase
Request QA
Sales Quality Product Costing
Order Inspection -in (delivered cost)
Stock Out –
Production Whse. &
Quality Logistics
Sales End
Inspection-out
Invoice Accounts Payable

Production/ QA hold & Cycle Count

Purchase Order Inventory Ledger
Work Order release, BOM Inbound &
Management by Item
Management updates Outbound

Inventory Reconciliation