S&op process template
- 1. XYZ Company’s S & O P Guide Luke Lenahan 770-883-1112 luke.lenahan@hotmail.com 2013 1
- 2. Sales and Operations Planning Process Guide 2
- 3. Sales and Operations Planning Process Guide STEP 1: Product Portfolio Planning PURPOSE 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 pipeline 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 •Every _____ business day of the year •Strive for continuous improvement •Create environment to WIN Owner / 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 into Managers, Technology Director, Supply Managers, SBU VP, S&OP Director S&OP process 3
- 4. Sales and Operations Planning Process Guide STEP 2: Demand Planning PURPOSE 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 WIN Owner / 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. Sales and Operations Planning Process Guide STEP 3: Supply Planning PURPOSE: INPUTS: OUTPUTS: •Ensure the demand plan can be met •Unconstrained demand plans within the strategic constraints of the •Constraints – Manpower, Financial, LT, •Purchase plan business Space •Custom order demands •Actual inventory & SMOG •Inventory plans & actions •Develop alternate supply plans or •Inventory Targets •New product requirements •Issues & decisions required actions if it cannot be met •Acts of God •Need for future capacity •Synchronize Demand, Supply and •MOQ / MOV •Agreed actions and minutes Inventory plans •Vendor duplicity •Vendor Quality Problems •Indentify long term capacity •Anomalies requirements •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 WIN Owner / 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. Sales and Operations Planning Process Guide STEP 4: S&OP Integration & Reconciliation PURPOSE: INPUTS OUTPUTS •Resolve availability constraints •Reference to Product Portfolio •COLLABORATIVELY: •Ensure plans aligned with strategy / Review • Constraints minimized business 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 Accy management 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 Goals 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 WIN Owner / 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. 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 & Metrics 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 • 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