S&OP

Sales & Operations Planning

Transform your organization with S&OP, driving seamless collaboration, streamlined workflows, and optimized cash-to-inventory cycles. Achieve financial efficiency at every step of the supply chain.

 

Unlock Growth Through Efficiency and Strategic Alignment

Enhanced Alignment and Decision-Making

 

Integrate sales, demand, supply, and delivery functions for unified direction and improved collaboration.

 

Optimized Inventory and Resource Management

 

Balance inventory levels, reduce stockouts, and effectively manage working capital for operational and financial stability.

 

Resilience and Growth Enablement

 

Leverage actionable data for strategic initiatives, crisis management, and profitability growth.

 

 

 

Address Common Challenges with S&OP

Organizations face common challenges in aligning sales and operations, including poor forecasting, high inventory levels, and rising costs. Supply constraints, ineffective supplier management, and siloed decision-making further disrupt efficiency. These issues, compounded by disconnected strategic execution, limit responsiveness to market demands. A robust S&OP process addresses these pain points, driving better alignment and performance.

Sales & Operations Planning (S&OP) is a collaborative supply chain process that matches supply with demand by integrating forecasts from sales and marketing with operational plans from suppliers, production, and logistics.

 

The Benefits of S&OPs

Inventory Management

  • Ensure coverage for high-demand items without overstocking.
  • Reduce obsolete inventory, minimize write-offs, and optimize inventory for volatile products.
  • Impact:
    • Inventory reduction: 5–20%
    • Write-offs reduction: 25%

Margin Improvement

  • Align production schedules with market needs to drive growth.
  • Optimize production costs (COGs) and asset usage to improve margins and EBITDA.
  • Impact:
    • Sales increase: 2–4%
    • Gross profit improvement: up to 5%

Additional Benefits

  • Enhance coordination with suppliers, improving lead times and supply chain resilience.
  • Align real-time data for faster market response and reduced bottlenecks.
  • Foster cross-functional decision-making for seamless operations.

 

Optimizing Performance: 5-Step S&OP Process for Effective Demand and Supply Planning

A monthly process that plans 3–18 months ahead:

  1. Demand Planning: Publish unconstrained forecasts from business units.
  2. Supply Planning: Identify constraints and resolve bottlenecks per site.
  3. Requirements Review: Balance demand and supply while addressing gaps.
  4. Demand & Supply Balancing: Evaluate trade-off scenarios and agree on a unified plan.
  5. Executive S&OP: Gain senior-level approval and drive continuous improvement.

How We Support Your S&OP Journey

  1. Analysis

    • Conduct interviews and data analysis to identify gaps.
    • Provide an external assessment of improvement opportunities.

  2. Diagnostic

    • Facilitate a full diagnostic session involving all key functions.
    • Analyze end-to-end planning processes and estimate potential improvements.

  3. Design & Run

    • Define new procedures, reports, and standards for S&OP.
    • Implement and test the process with hands-on support.
    • Overcome internal resistance and achieve measurable results.

 

Industry Examples

 

Consumer Goods (Furniture)

Challenge: Low forecast accuracy undermining trust with suppliers.

Solution: Redefine planning objects and stakeholders, align S&OP processes.

Fashion

Challenge: High launch costs and long time-to-market for new products.

Solution: Synchronize new product introductions (NPI) with S&OP timelines.

Industrial Goods (Mechanics)

Challenge: Unutilized production slots due to forecasting gaps.

Solution: Create scenario planning, introduce frozen periods, and align contracts.

FMCG

Challenge: Frequent order changes causing conflicts and extra costs.

Solution: Re-negotiate supply chain terms, introduce frozen periods for key products.

 

 

Further Insights

Video Navigate economic challenges with effective working capital st... Navigate economic challenges with effective working capital st...

Client Case :: Automotive Client Case :: Automotive

Supply Chain Resilience Supply Chain Resilience