sales and operational planning. agenda –what is s&op ? –s&op –process overview...
TRANSCRIPT
Sales and OperationalSales and OperationalPlanningPlanning
AgendaAgenda– What is S&OP ?
– S&OP
– Process Overview
– Demand Review
– Supply Review
– Pre S&OP
What is S&OP?What is S&OP?• What is it?
– “Sales & Operational Planning”
– Business planning discipline
• What does it do?
– Improves the overall cross functional communication across the business and to arrive at a business “game plan” to help manage and allocate critical resources to meet the needs of the customer.
– It ensures better coordination of company resources in delivering the business goals
• How can we benefit?
– Improved visibility
– Reduce costs/inventory
– Better planning and execution
– Improve customer service
– Increase team work within and across functions
S&OP – 5 Step ProcessS&OP – 5 Step Process
S&OPActual Vs. Plan
Exceptions/Issues
Pre S&OPDemand/Supply Balancing
Actual vs. Plan
Financial review to plan
Validation of previous steps
Performance Measures & Resources
Demand PlanningSales vs. Forecast vs. Plan
Supply PlanningProduction vs. Plan
Capacities
Safety stock
Historical Data Generation
2
3
4
5
1
Key MeetingsKey MeetingsFormal Meetings
1. Demand review
Sales & Marketing & Supply Chain
Day 6 of each month
2. Supply review
Supply Chain & Logistics
Day 7 of each month
3. Pre S&OP (Financial Review)
All Functions – CODI -1
Day 9 of each month
4. S&OP review
Key Functional Representative & CODI
Day 10 of each month
Demand ReviewDemand ReviewDemand Review
• Gain consensus on what will be sold each month for each product
• Continuous improvement in Forecast accuracy is the driver behind the demand review
• Document assumptions
– NPD
– Deletions
– Market/competitors etc…
• Meeting Chair – Shareef Khan/Manuel
• Participants;
– Sales
– Marketing
– Supply Chain/Logistics
Demand ReviewDemand ReviewDemand Review
• Meeting Agenda
– Review Prior months sales (Historic Review)
• Vs forecast
• Vs E1
• Review KPI’s
– Forecast Accuracy %
– Forecast Bias
• Review Forward Projections
– Same format as Historic review. (Looking out 24 months)
• Review activity calendar
Demand ReviewDemand ReviewDemand Review
• Output
– Clear set of minutes
– Consensus volume projection
– Highlight “time fence” breaches
– Documentation of any actions that need to be made ie change/moving promotions/NPD launches etc…
– Volume file to be sent to Supply Chain
– Volume File to be sent to Finance
Supply ReviewSupply ReviewSupply Review
• Develop a proactive approach to resolving imbalances in capacity & resources
• Document assumptions
– Supply constraints
– Procurement plan
– Utilisation plan
• Meeting Chair – Shareef Khan
• Participants;
– Supply Chain
– Logistics
Supply ReviewSupply ReviewSupply Review
• Meeting Agenda
– Review Prior months production/supply performance (Historic Review)
• Vs projection
• Vs Budget
• By Supply Point & Product
• Review KPI’s
– Delivery Performance
– Write offs & aged inventory
• Review Forward Projections
– Same format as Historic review. (Looking out 24 months)
Supply ReviewSupply ReviewSupply Review
• Output
– Clear set of minutes
– Action plans to ensure delivery of demand volumes
– Capacity Schedules
– Financial Implications of action plans to be costed
– Consensus on plan of action to deliver volumes
Pre S&OPPre S&OPPre S&OP
• This is the finalisation of the plans from each of the functions
• The final opportunity to refine the plans Vs the business goals
• It’s the opportunity to review gaps and resolved action plans
• Identification of any issues that cannot be resolved and need to be escalated to EMT
• Meeting Chair – SMT member
• Participants;
– SMT
– Other participants (as required)
Pre S&OPPre S&OPPre S&OP
• Meeting Agenda
– Review KPI’s out of Demand & Supply reviews
– Review gaps and gap closing opportunities
• KPI Review
– P&L Vs
• E1
• Last months review
– Inventory Targets
– Resource recommendations
• Outputs
– Clear Minutes with actions
– Document issues that need escalation to CODI
– Final consensus business plan
Business ScorecardBusiness Scorecard
• Previous month• Target• Current month
S&OP Business ScorecardPrevious Month Target
Current Month Comments
Financial Total Sales (CANN)Management Result
Demand Forecast AccuracyForecast Bias
Supply Inventory (Total FG)FG Days CoverInventory (R&P)R&P days Cover
Production Total Produced (Tons)Logistics Service Level
S&OPS&OPSales & Operations Review
• Formalise the business plans by resolving any issues or imbalances that have been brought to the meeting
• Review of Demand, Supply and Financial plans
• Approve plans
• Meeting Chair - Kevin Bush
• Participants;
– Executive Team
– SMT
• OUTPUT
– Accept or change proposals
– Choose from alternatives provided
– “GAME PLAN”