Go to Top

Sales and Operations Planning

The ripple effects of poor sales and operations planning (S&OP) can be staggeringly costly. “Bad numbers” create false information that both internal personnel and vendors alike act on. Clearly, it negatively affects production and diminishes customer service. The consequence of a poor S&OP process severely and negatively affects the income statement and balance sheet and other business outcomes.

High performance organizations have an S&OP process with high quality and timely information flow which initiates material flow from vendors into production and then to customers. S&OP is a pivotal process that aligns and synchronizes the management team for a defined decision-making process with clear accountability for the express purpose to achieve the company’s operating objectives. As a result, vulnerability to silo boundaries and tensions is prevented by strong leadership that ensures a coordinated set of ground rules for effective cross-functional teamwork, communication and accountability. The entire business is the beneficiary of a truly effective process.

There are eight prerequisites to developing and refining a sales and operations planning process:

  1. Understanding by executive leadership of the S&OP process and its benefits.
  2. Executive leadership’s commitment, sponsorship and persistence.
  3. Design the initial S&OP process.
  4. Organizational alignment and clear accountability.
  5. Information technology support.
  6. Performance measurement.
  7. Change management.
  8. Refine the S&OP process.

Executive leadership can have a firm grip on how planning and execution decisions drive the company’s performance.

Using our experience and expertise will help management supercharge S&OP progress toward achieving higher and higher levels of operating performance.