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XYZ Company’s        S & O P GuideLuke Lenahan770-883-1112luke.lenahan@hotmail.com2013                           1
Sales and Operations Planning Process Guide                                              2
Sales and Operations Planning Process Guide             STEP 1: Product Portfolio PlanningPURPOSE                         ...
Sales and Operations Planning Process Guide           STEP 2: Demand PlanningPURPOSE                                      ...
Sales and Operations Planning Process Guide       STEP 3: Supply PlanningPURPOSE:                                         ...
Sales and Operations Planning Process Guide                STEP 4: S&OP Integration & ReconciliationPURPOSE:              ...
Sales and Operations Planning Process Guide           STEP 5: S&OP Meeting PURPOSE/AGENDA                                 ...
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S&op process template

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S&op process template

  1. 1. XYZ Company’s S & O P GuideLuke Lenahan770-883-1112luke.lenahan@hotmail.com2013 1
  2. 2. Sales and Operations Planning Process Guide 2
  3. 3. Sales and Operations Planning Process Guide STEP 1: Product Portfolio PlanningPURPOSE INPUTS: OUTPUTS: • Agree on the existing & new •Technology impacts •Forecast for the demand plan w/ product forecast •Product portfolio plan key assumptions and timing •Business stage gate plan •New product summary • Agree product discontinuation •Regulatory initiatives •New products implementation & SKU rationalization plans •SKU rationalization planning plans with timelines •Marketing new product strategy •SKU rationalization plans • Give visibility to stage gate •Acquired products •Agreed actions and minutes projects and new product pipelineREQUIRED BEHAVIOR LEAD TIME:•Exclusive use of the formal system of policies, processes and procedures•Personal accountability & responsibility •_____ days•Bring bad news early & recommend good solutions•Silence is acceptance•There is ONE set of numbers CYCLE TIME:•Exhibit passion for the business •Every _____ business day of the year•Strive for continuous improvement•Create environment to WINOwner / Facilitator / Participant: TOOLS:•Owner – Marketing Managers New Products; Business •ERP, Spreadsheets, etc.Manager (profitability) SKU rationalization•Facilitator – Product Managers, S&OP Director•Participants – Marketing Managers, Sales, Product ROLE: •Ensure product portfolio planning is integrated intoManagers, Technology Director, Supply Managers, SBUVP, S&OP Director S&OP process 3
  4. 4. Sales and Operations Planning Process Guide STEP 2: Demand PlanningPURPOSE INPUTS•Future Sales Forecast, (graphic) OUTPUTS •Historical Sales Forecast (graphic) •Unconstrained & realistic demand • Generate an agreed to •Changes from previous forecast forecast unconstrained demand forecast •Current targets, 3-years actual data •Forecast assumptions highlighting •New Product Plan & Assumptions •External Assumptions changes to previous assumptions • Both volume & value •Surplus Inventory •Defined gaps from previous forecast and •Pricing, Senior Mgmt / Corporate, Promotions, current target • Including Assumptions Product Mix, Competitive, Customer, •Contingency plan for gap closure Cannibalization • Identify gaps in demand •Statistical Forecast (inc Historical data) •Action plan achieving demand forecast •Previous Actions •Summary of the demand planning meeting • Develop an action plan to close •Sales & Marketing Calendar •Catalogue Placement / Ads-Drops the gaps •SKU Rationalizations •Anomalies • Validate the demand plan •Custom Order Demands •“PORTERS 5 FORCES”REQUIRED BEHAVIOR LEAD TIME:•Exclusive use of the formal system of policies, processes and procedures•Personal accountability & responsibility • _____ Days•Bring bad news early & recommend good solutions•Silence is acceptance•There is ONE set of numbers CYCLE TIME:•Exhibit passion for the business•Strive for continuous improvement •Every _____ business day of the month•Create environment to WINOwner / Facilitator / Participants TOOLS: •Owner – •ERP, Spreadsheets, Graphics, Balanced •Facilitator – Scorecards, etc. •Participants – ROLE: •Establish process and procedures to ensure demand planning is integrated into S&OP process 4
  5. 5. Sales and Operations Planning Process Guide STEP 3: Supply PlanningPURPOSE: INPUTS: OUTPUTS:•Ensure the demand plan can be met •Unconstrained demand planswithin the strategic constraints of the •Constraints – Manpower, Financial, LT, •Purchase planbusiness Space •Custom order demands •Actual inventory & SMOG •Inventory plans & actions•Develop alternate supply plans or •Inventory Targets •New product requirements •Issues & decisions requiredactions if it cannot be met •Acts of God •Need for future capacity•Synchronize Demand, Supply and •MOQ / MOV •Agreed actions and minutesInventory plans •Vendor duplicity •Vendor Quality Problems•Indentify long term capacity •Anomaliesrequirements •Returned Merchandise REQUIRED BEHAVIOR LEAD TIME:•Exclusive use of the formal system of policies, processes and procedures • _____ days•Personal accountability & responsibility•Bring bad news early & recommend good solutions•Silence is acceptance•There is ONE set of numbers CYCLE TIME:•Exhibit passion for the business • Every _____ business day of the month•Strive for continuous improvement•Create environment to WINOwner / Facilitator / Participant: TOOLS: •ERP, Spreadsheets, Graphics, Balanced•Owner – Scorecards, etc.•Facilitator –•Participants – ROLE: Coordinate supply planning process to service customers and reduce working capital 5
  6. 6. Sales and Operations Planning Process Guide STEP 4: S&OP Integration & ReconciliationPURPOSE: INPUTS OUTPUTS•Resolve availability constraints •Reference to Product Portfolio •COLLABORATIVELY:•Ensure plans aligned with strategy / Review • Constraints minimizedbusiness plans •Issues from Demand Reviews • Fulfillment plans aligned with•Contingency planning •Issues from Supply Reviews•Supply gap resolution strategy and business plans •Key Performance Indicators:•Prepare open issues deck for senior • Contingency plans in place DIFOT, Order Accy, Fcst Accymanagement approval/decision •Outputs from Portfolio, Demand, • Open Issues Deck ready for Supply meetings senior management •Business Plans - How we get there action/direction •Strategic Plan - End GoalsREQUIRED BEHAVIOR LEAD TIME:•Exclusive use of the formal system of policies, processes and procedures • _____ days•Personal accountability & responsibility•Bring bad news early & recommend good solutions•Silence is acceptance•There is ONE set of numbers CYCLE TIME:•Exhibit passion for the business • Every ____ business day of the month•Strive for continuous improvement•Create environment to WINOwner / Facilitator / Participants: TOOLS: Owner – •ERP, Spreadsheet, Graphics, Balanced Facilitator – Scorecards, etc. Core Participants – ROLE: Closure of demand & supply gaps; prepare open issue deck for leadership decision 6
  7. 7. Sales and Operations Planning Process Guide STEP 5: S&OP Meeting PURPOSE/AGENDA OUTPUTS: INPUTS: •Provides focused, aligned, •Updated financial & business •Open Issues Deck from S&OP strategic plans across all functions plan _____ months out integration effort •Gaps resolved •Review Current business status - vs •Product Family reviews Previous Year, Budget, Last •Action plan to address cited •Financial Forecast Forecast, Strategic Plan opportunities and risks •Updated KPIs & Metrics / •Review & Resolve remaining Gaps •KPI improvement plan Scorecards •Communication assigned of •Visibility of Opportunities and Risks key decisions & actions •Review KPIs & MetricsREQUIRED BEHAVIOR LEAD TIME:•Exclusive use of the formal system of policies, processes and procedures•Personal accountability & responsibility •_____ days•Bring bad news early & recommend good solutions•Silence is acceptance•There is ONE set of numbers CYCLE TIME:•Exhibit passion for the business • Every ____ business day of the month•Strive for continuous improvement•Create environment to WIN Owner / Facilitator / Participant: TOOLS: Owner – •ERP, Spreadsheet, Graphics, Balanced Scorecard, Facilitator – etc. Core Participants – ROLE: Facilitate the meeting & issue resolution 7

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