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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Bibliographic Details
Published inThe journal of business forecasting Vol. 27; no. 1; p. 4
Main Author Gallucci, John A
Format Journal Article
LanguageEnglish
Published Flushing Journal of Business Forecasting 01.04.2008
Subjects
Accuracy
Best practice
Collaboration
Decision making
Efficiency
Inventory
Marketing
Packaged goods
Planning
Production planning
Risk management
Sales forecasting
Supply chains
United States > US
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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.
ISSN:1930-126X