Perspectives on Sales & Operations Planning

Some thoughts on S&OP Best Practices

Decades of experience with planning systems has shown that detailed planning and execution systems do not work to to their full capability without integrated monthly sales and operations planning process and solution.  S&OP systems such as the Steelwedge S&OP solution ensure that demand and supply plans are balanced at the family level, volume level, dollar goal point, and that detailed item and mix levels can be properly managed on a day-to-day and week-to-week basis.

An S&OP solution does this by directly connecting to ERP,  CRM, MRP and RCCP processes and using this feedback to guide other detail level execution processes.

Without this connection to detailed resource planning tools, the objectives and plans established by exeuctives in the S&OP process cannot be consistently achieved.  Some best practices to consider include:

1. Sales forecasts developed for each product line in each business segment based on collaborative input from the field, from Sales Opportunity information contained in CRM systems, on history,  from distributor POS data, and from exection sales and marketing management.

2.  Forecasts include backlog, individual item forecasts, a family planning bill or product mix (sBOM) view.

3. A weekly production schedule by item up to eight weeks out (depends on lead time) as well as weekly shcedules for up to 26 weeks out.

4. An 18 month forecasts and production plan including materials and resource requirements.

5.  A clear Executive S&OP process involving top management to review  and approve S&OP plans and goals which enables  tactical decisions to be managed by operational managers.

6.  A clear six-step S&OP process is in place that involves and engages all relevant parties.  This process is adhered to and the results are measured.

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