S&

OP

Sales & Operations

Planning

Presented
by

Dr. Shehzad Khan

Mr.Fawad
Mr.Hammad Ali
Mr.Saim Zafar

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OP

Introduction

Why S&OP

Objectives

Data Flow

Supply Planning Process

Reconciliation

S&OP Input

S&OP Output

Modus Operandi

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OP

Statement of
intent

Sales and Operation Planning

The process by which an organization will lead and

run the business through monthly structured reviews
at all locations focusing on strategy, performance
and gap analysis with management attention on 4 24 month horizon.

A Collaborative and cross-functional process

that align an organization around a single
sales, inventory and production plan

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OP

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OP

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OP

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OP
Customers are demanding:

Increasing business risks of :

Accurate and timely commitments

Shorter lead times
Flexibility
Product differentiation
Dedicated inventory
Visibility into the supply chain
High quality
Automation
Lowest costs

Too much inventory

Inventory in the wrong place
Ordering the wrong inventory
Missing delivery dates
Losing orders
Shipping the wrong products
Increased expediting costs
Losing customers
Increased obsolescence

Forcing businesses to better manage:

Inventories
Ability to promise
Global suppliers

Supply/Demand
Forecasts
Cycle time

Stocking policies
VMI/SMI processes
Replenishment

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OP

S&OP Integrated strategy with

operation
STRATEGIC
PLANS

FINANCIAL
PLANS

BUSINESS
PLANING

Sales and Operations

Planning
DEMAND
MANAGEMENT

NEW PRODUCT /
ACTIVITIES
MANAGEMENT

DEMAND
CREATION

CREATIVITY /
TECHNOLOGY

SOURCING
MANAGEMENT

DEMAND
PLANING

OPPORTUNITY
ANALYSIS &
SELECTION

SUPPLY
POINT
STRATEGIC
STRATEGIC
MANAGEMENT
PLANS
PLANS

SALES
STRATEGIC
STRATEGIC
PLANING
PLANS
PLANS

STRATEGIC
STRATEGIC
RESOURCE
PLANS
PLANS
MANAGEMENBT

SUPPLY
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS

DEMAND
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS

STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS

SUPPLY
MANAGEMENT
STRATEGIC
CAPABILITY

DISTRIBUTION
LOGISTICS
STRATEGY

PROJECT &

S&
OP

S&OP Integrated across the business at all

levels
STRATEGIC
PLANS

FINANCIAL
PLANS

BUSINESS
PLANING

Sales and Operations

Planning
DEMAND
MANAGEMENT

NEW PRODUCT /
ACTIVITIES
MANAGEMENT

DEMAND
CREATION

CREATIVITY /
TECHNOLOGY

SOURCING
MANAGEMENT

DEMAND
PLANING

OPPORTUNITY
ANALYSIS &
SELECTION

SUPPLY
POINT
STRATEGIC
STRATEGIC
MANAGEMENT
PLANS
PLANS

SALES
STRATEGIC
STRATEGIC
PLANING
PLANS
PLANS

STRATEGIC
STRATEGIC
RESOURCE
PLANS
PLANS
MANAGEMENBT

SUPPLY
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS

DEMAND
STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS

STRATEGIC
STRATEGIC
EXECUTION
PLANS
PLANS

SUPPLY
MANAGEMENT
STRATEGIC
CAPABILITY

DISTRIBUTION
LOGISTICS
STRATEGY

PROJECT &

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OP

Objectives of
S&OP
Consensus on Managing Gaps.
Greater accountability of individual plans.
Determination of resource capacity needed.
Achieve the business plan, and guide strategic thinking.
Ensure that operating and financial plans are integrated,
realistic and synchronized.
Create ONE company game plan / single set of numbers.

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OP

Integrated Data
Process is designed to facilitate two way
Flow
communication throught the supply chain
NPI Report
Allocation Decisions
Business Decisions
Policies & Guide lines

Approved Supply Plan

Commentary

Approved Demand
Statement
Safety stock
recommendation
Commentary

In f
o rm
at i
on

Manufacturin
g

Planning

Marketing
Affiliates

ack
db
Fee

Capacity Constraints
Master Replenishment
Schedule
Inventory Management
Commentary

Divisi
on
Approved Supply plan

Master Arrivals
Schedule
Approved Safety stock

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OP

Supply Planning
Process

FINAL
S&OP
MEETING

LATEST VIEW &

RECOMMENDATI
ON

Gap
Analysis

Strateg
y
SUPPLY
REVIEW

Assessment
Accountabil
ity
Issues
Vulnerabilit
y

Demonstra
ted
Performan
ce
Supply
Manager

Alternate
Plans

Impro
veme
nt

Supply
Assumpti
on

STRATEGY
BUSINESS
PLAN
PERFORMANC
E
Integration & Financial
Reconciliation
DEMAND
REVIEW

NEW
PRODUCT

INTRODUCTI
ON REVIEW

FINAL
S&OP
MEETING

S&
Supply Review
OP

LATEST VIEW &

RECOMMENDATI
ON

SUPPLY
REVIEW

STRATEGY
BUSINESS
PLAN
PERFORMANC
E
Integration & Financial
Reconciliation
DEMAND
REVIEW

SUPPLY MANANGEMENT
Strateg
y

Demonstrated
Performance
Internal & External
Supply Chain
Seasonality Pattern
Improvement Plans
Flex Potential
Hedging Strategy
New Product Phase
In/Out & Change Activity
Un-Constrained
Forecast
Assumption Vulnerability
& Opportunity
(Upside/Downside)

1. Communicate &
Coordinate
2. Review issue &
options
Material
Capacity
Hedging
What if
Assumptions
3.Performnace
4.Change and Impact
5.Present alternatives
with Implications

ACOUNTABLE SUPPLY PLAN

Alternate Supply
Chain

Issues Arising
& Resolve

Proposed Plan

NEW
PRODUCT

INTRODUCTI
ON REVIEW

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OP

SUPPLY
REVIEW

FINAL
S&OP
MEETING

LATEST VIEW &

RECOMMENDATI
ON
STRATEGY
BUSINESS
PLAN
PERFORMANC
E
Integration & Financial
Reconciliation
DEMAND
REVIEW

Integration & Financial

Reconciliation
NEW
PRODUCT

INTRODUCTI
ON REVIEW

INTEGRATION & FINANCIAL RECONCILLATION

Product
Managemen
t Issues
Arising
Demand
Issues Arising
Supply Issues
Arising
Country Wide
Project Issues
Arising
Financial
Evaluation of
New Plan
Financial
Implication
of Changes
Alternate
Proposals
with
Financial
Implication

1. Consolidate issue rising

2. Discussion
One on One
Small Group
As appropiate
3.Understand change
/Impact
Operational
Functional
4.Analyse what if scenario
and sensitiveness
5.Latest fianancial review
6.Proposed plan
/Recommendation

Agenda for
Management
Review
Latest view
Vulnerability
Opportunity
Out Come of
What if
Scenario
Gap
Identified Vs:
Annual Plan
Strategy
Performance

Decision
Required

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Focus on what is
changing

Monthly regeneration of plan over the rolling horizon allows

A greater understanding beyond the number assumption & sensitivities

Operational and financial implications
What- if analysis
Managing change and required decisions

Information for decision making not spreadsheet data dump !!

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Role Of S&OP Task Team
OP

To put in place a sustainable S&OP process to run the

company, and to meet the requirement of the integrated
S&OP Process

This will involve

Changing the way of working of the senior tea
Understanding the requirements of the S&OP process
Implementing new tools

Create discipline planning culture, based on maintaining a

realistic one sett of numbers over 24month horizon

S&
OP

Its all about collaboration