HOW TO MITIGATE RISK AND DRIVE ALIGNMENT WITH S&OP
Best-Practice Sales & Operations Planning (S&OP) is anchored on cross-functional alignment. Often, a primary reason that S&OP fails is because the functional owner of S&OP, which typically is the Supply Chain, is not the function with the most influence. This article illustrates how...
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Published in | The journal of business forecasting Vol. 27; no. 1; p. 4 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Flushing
Journal of Business Forecasting
01.04.2008
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Subjects | |
Online Access | Get full text |
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Summary: | Best-Practice Sales & Operations Planning (S&OP) is anchored on cross-functional alignment. Often, a primary reason that S&OP fails is because the functional owner of S&OP, which typically is the Supply Chain, is not the function with the most influence. This article illustrates how scenario planning within S&OP can support Commercial strategies while protecting Supply Chain cost avoidance initiatives. Scenario planning is a great solution to this problem. It can help to mitigate the risk and it is paramount in validating the impact of the S&OP process to Commercial. Demand and Supply Planning must identify a "decision trigger point"; i.e., the latest possible time that production can be increased to have a top-line success. With both the Demand Plan Consensus Meeting and the S&OP Meeting adding value to Commercial, they will continue to engage eagerly in the S&OP process. |
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ISSN: | 1930-126X |