SNOP Framework

Supply Chain Management (MGB LSC 114)

Faculty: Dr. Rahul V Altekar
 
Sales & Operation Planning
“A process to develop tactical plans that provide management, the ability to strategically
direct its businesses to achieve competitive advantage on a continuous basis by integrating
customer-focused marketing plans for new and existing products with the management of
the supply chain. 

The process brings together all the plans for the business (sales, marketing, development,
manufacturing, sourcing, and financial) into one integrated set of plans.” 
Evolution of Sales & Operation
Evolution of S &OP
• S&OP evolved to include business strategy input, marketing input, and a more rigorous financial analysis
and view of the organization.
• Oliver Wight pioneered these advances and appropriately called the new process Advanced S&OP and
most recently Integrated Business Planning (IBP).
•  The monthly process expanded to five meetings
– Business (Executive) Management
– Product (Marketing) Management
– Demand (Sales) Management
– Supply (Operations/Supply Chain) Management 
– Financial Integration
Purpose of S & OP
• To improve the financial performance of the organization

• To drive the organization with one strategic plan

• To integrate all organizational functions making the best decisions for the organization as a whole 

• To improve transparency and communication across the organization

Oliver Wight -Sales & Operation Planning
process 
 Case Study – Heinz
 Challenges faced by Heinz
• Retailers were demanding ever greater levels of customer
service with daily delivers and zero inventory.

• With massive demand of its iconic tomato

ketchup needed control of supply, right down to SKU level.

A team of 12 regional implementation managers – challenged themselves to achieve the

99% efficiency in 15 months with using Oliver Wight S & OP Model  and called it Heinz
Business Management (HBM)
Before HBM, there revenue was shortfall in forecast revenue
which led to introduction of new product to fill in the gap –
risking the supplier and customer testing.

used "one set of number" at outsets – allowing them to

identify gap in forecast revenue. 

Heinz with additional time to introduce NPS with trail and

setting up the supply chain without hindering the current
process.

NPS were launched with robust financial projections and

rigorous and retail testing with resource planning with
quickly responding to changes and at all levels of
organization.