How is your organization dealing with the constantly changing scenarios in their decision-making process? Do you have timely and reliable information to evaluate different scenarios and anticipate the impacts of your decision?
According to Joao Lima – Implementation Manager at Voltarion – designing and implementing an effective and integrated S&OP – Sales & Operations Planning process can be the answer for those questions and must be tailored according to each company needs.
Sales and Operations Planning (S&OP) is a management process for improving results through a structured approach based on resource and demand balancing, planning analysis, continuous improvement and been controlled by key performance indicators (Dashboards, KPIs, Root Cause Analysis, etc.). The S&OP is a tactical management process that requires processes integration, people/structure, organization and technology to support the decision-making process.
A well-structured S&OP process should: implement the company’s strategy, evaluate the main decision parameters, be sustainable and be agile in any market situation. It is a tactical tool that seeks to create synergy and promote feedback between strategic plans and daily operational execution.
The S&OP process allows better agility in managing operations by building better and more integrated plans, anticipating scenarios and controlling the execution. Furthermore, an effective S&OP process seeks to improve both the company’s dynamic capabilities and its flexibility to adapt with the purpose to be sustainable and profitable.
The four main aspects of a S&OP cycle that will be explored throughout an implementation are:
1) Sales & Marketing – Forecast, Sales Planning and KPIs.
2) Operations & Supply – Production Planning,
Purchasing and Distribution.
3) Economic & Financial – P&L: Revenue, Cost, Expenses, Profit, EBITDA, working capital, etc.
4) Executive Review Meetings – Analysis, Decision and Communication.
At Voltarion we believe that the implementation of a reliable, flexible, dynamic and integrated S&OP process will lead your business to reach better results. It’s a fundamental part of an effective Management Operational System (MOS).
Interested on hearing more about S&OP process powered by Voltarion? Please contact us.