– Balance demand and supply at the aggregate level.
– Align operational planning with financial planning
– Link strategic planning with day-to-day sales and operational activities.
Required collaboration between top management and the team.
S&OP process steps:
– Data Gathering
– Product Review
– Demand Planning
– Supply Planning
– Financial Review
– Executive meeting
What does S&OP meetings do:
– Reviewing Performance
– Evaluating Demand Levels
– Evaluating Supply capability
– Reconcile demand, supply and financial plans.
S&OP meeting best practises:
– Conduct the meeting only when data has been gathered properly.
– Should be chaired by highest ranking demand side professional (e.g. Vice-President Sales).
– Should be brief.
– Product Family level review should be performed. Sub-Families should be reviewed only as a Exception basis.
– The Demand Manager should be facilitating the meeting.
If the demand plan for a product differs from the actual demand for 3 months in a row, then a detailed strategy review should be done.