S&op process template

1. 1
XYZ Company’s
S & O P Guide
Luke Lenahan
770-883-1112
[email protected]
2013

2. 2
Sales and Operations Planning Process Guide

3. Sales and Operations Planning Process Guide
INPUTS:
•Technology impacts
•Product portfolio plan
•Business stage gate plan
•Regulatory initiatives
•SKU rationalization planning
•Marketing new product strategy
•Acquired products

TOOLS:
•ERP, Spreadsheets, etc.
REQUIRED BEHAVIOR
Owner / Facilitator / Participant:
•Owner – Marketing Managers New Products; Business
Manager (profitability) SKU rationalization
•Facilitator – Product Managers, S&OP Director
•Participants – Marketing Managers, Sales, Product
Managers, Technology Director, Supply Managers, SBU
VP, S&OP Director
OUTPUTS:
•Forecast for the demand plan w/
key assumptions and timing
•New product summary
•New products implementation
plans with timelines
•SKU rationalization plans
•Agreed actions and minutes
PURPOSE
STEP 1: Product Portfolio Planning
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers
•Exhibit passion for the business
•Strive for continuous improvement
•Create environment to WIN
ROLE:
•Ensure product portfolio planning is integrated into
S&OP process
LEAD TIME:
•_____ days
CYCLE TIME:
•Every _____ business day of the year
• Agree on the existing & new
product forecast
• Agree product discontinuation
& SKU rationalization plans
• Give visibility to stage gate
projects and new product
pipeline
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4. Sales and Operations Planning Process Guide
INPUTS
TOOLS:
REQUIRED BEHAVIOR
Owner / Facilitator / Participants
OUTPUTSPURPOSE
STEP 2: Demand Planning
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers
•Exhibit passion for the business
•Strive for continuous improvement
•Create environment to WIN
ROLE:
LEAD TIME:
CYCLE TIME:
• Generate an agreed to
unconstrained demand forecast
• Both volume & value
• Including Assumptions
• Identify gaps in demand
•Develop an action plan to close
the gaps
•Validate the demand plan
•Future Sales Forecast, (graphic)
•Historical Sales Forecast (graphic)
•Changes from previous forecast
•Current targets, 3-years actual data
•New Product Plan & Assumptions
•External Assumptions
•Surplus Inventory
•Pricing, Senior Mgmt / Corporate, Promotions,
Product Mix, Competitive, Customer,
Cannibalization
•Statistical Forecast (inc Historical data)
•Previous Actions
•Sales & Marketing Calendar
•Catalogue Placement / Ads-Drops
•SKU Rationalizations
•Anomalies
•Custom Order Demands
•“PORTERS 5 FORCES”
•Unconstrained & realistic demand
forecast
•Forecast assumptions highlighting
changes to previous assumptions
•Defined gaps from previous forecast and
current target
•Contingency plan for gap closure
•Action plan achieving demand forecast
•Summary of the demand planning meeting
•Owner –
•Facilitator –
•Participants –
•Every _____ business day of the month
• _____ Days
•ERP, Spreadsheets, Graphics, Balanced
Scorecards, etc.
•Establish process and procedures to ensure demand
planning is integrated into S&OP process
4

5. Sales and Operations Planning Process Guide
INPUTS:
•Unconstrained demand plans
•Constraints – Manpower, Financial, LT,
Space
•Actual inventory & SMOG
•Inventory Targets
•New product requirements
•Acts of God
•MOQ / MOV
•Vendor duplicity
•Vendor Quality Problems
•Anomalies
•Returned Merchandise
TOOLS:
REQUIRED BEHAVIOR
Owner / Facilitator / Participant:
•Owner –
•Facilitator –
•Participants –
OUTPUTS:
•Purchase plan
•Custom order demands
•Inventory plans & actions
•Issues & decisions required
•Need for future capacity
•Agreed actions and minutes
PURPOSE:
•Ensure the demand plan can be met
within the strategic constraints of the
business
•Develop alternate supply plans or
actions if it cannot be met
•Synchronize Demand, Supply and
Inventory plans
•Indentify long term capacity
requirements
STEP 3: Supply Planning
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers
•Exhibit passion for the business
•Strive for continuous improvement
•Create environment to WIN
ROLE: Coordinate supply planning process to service
customers and reduce working capital
LEAD TIME:
• _____ days
CYCLE TIME:
• Every _____ business day of the month
5
•ERP, Spreadsheets, Graphics, Balanced
Scorecards, etc.

6. Sales and Operations Planning Process Guide
TOOLS:
•ERP, Spreadsheet, Graphics, Balanced
Scorecards, etc.
REQUIRED BEHAVIOR
Owner / Facilitator / Participants:
OUTPUTS
•COLLABORATIVELY:
• Constraints minimized
• Fulfillment plans aligned with
strategy and business plans
• Contingency plans in place
• Open Issues Deck ready for
senior management
action/direction
PURPOSE:
•Resolve availability constraints
•Ensure plans aligned with strategy /
business plans
•Contingency planning
•Supply gap resolution
•Prepare open issues deck for senior
management approval/decision
STEP 4: S&OP Integration & Reconciliation
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers
•Exhibit passion for the business
•Strive for continuous improvement
•Create environment to WIN
ROLE:
Closure of demand & supply gaps; prepare open issue
deck for leadership decision
LEAD TIME:
• _____ days
CYCLE TIME:
• Every ____ business day of the month
INPUTS
•Reference to Product Portfolio
Review
•Issues from Demand Reviews
•Issues from Supply Reviews
•Key Performance Indicators:
DIFOT, Order Accy, Fcst Accy
•Outputs from Portfolio, Demand,
Supply meetings
•Business Plans - How we get there
•Strategic Plan - End Goals
Owner –
Facilitator –
Core Participants –
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7. Sales and Operations Planning Process Guide
INPUTS:
•Open Issues Deck from S&OP
integration effort
•Product Family reviews
•Financial Forecast
•Updated KPIs & Metrics /
Scorecards
TOOLS:
•ERP, Spreadsheet, Graphics, Balanced Scorecard,
etc.
REQUIRED BEHAVIOR
Owner / Facilitator / Participant:
Owner –
Facilitator –
Core Participants –
OUTPUTS:
•Updated financial & business
plan _____ months out
•Gaps resolved
•Action plan to address cited
opportunities and risks
•KPI improvement plan
•Communication assigned of
key decisions & actions
PURPOSE/AGENDA
STEP 5: S&OP Meeting
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers
•Exhibit passion for the business
•Strive for continuous improvement
•Create environment to WIN
ROLE:
Facilitate the meeting & issue resolution
LEAD TIME:
•_____ days
CYCLE TIME:
• Every ____ business day of the month
•Provides focused, aligned,
strategic plans across all functions
•Review Current business status - vs
Previous Year, Budget, Last
Forecast, Strategic Plan
•Review & Resolve remaining Gaps
•Visibility of Opportunities and
Risks
•Review KPIs & Metrics
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