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The Sales and Operations Planning (S&OP) process is regarded as the greatest innovation for managing demand. Many books are written on the process. Speakers at S&OP, demand planning, and forecasting conferences tout about its value, and talk about what they have achieved. They have significantly improved their forecast accuracy, inventory, and customer service. But, the IBF’s recent survey data does not fully prove these benefits. In this report, you will learn how to gain the most from your S&OP process and learn why it has not worked for many.
Table of contents:
- Any Problem With S&OP
- Survey Data
- The Proof Of The Pudding Is In The Eating
- Where Is The Problem?
- Assumption No. 1 | Management Support
- Assumption No. 2 | Cross-functional Collaboration
- Assumption No. 3 | One-number Forecast
- Assumption No. 4 | Use Metrics To Measure Performance
- Assumption No. 5 | Use Pos/consumption Or Order/demand Data
- Assumption No. 6 | Have A Dedicated Forecastng Software/System