Sales and operation planning

BUSINESS PROCESS SOLUTIONS

Sales & Operations Planning

Supply chain profitability for superior business performance
The S&OP evolution
A Sales and Operations Planning (S&OP) process has as its foundation the cross functional integration of several business functions and is driven by the need to align these functions behind one company vision in the most cost effective way. In this wayvalue can be created so that an organisation can become more competitive and more profitable. S&OP is often defined as a continuous structured process that balances supply and demand through continuous interactions to create an integrated set of plans. It provides continuous monitoring of performance against plan and a disciplined way of responding to changes. Based on that, the majority oforganisations recognise the importance of S&OP and have some sort of process in place, although often it remains a tactical tool and / or is poorly executed. Today’s S&OP is about empowering people and functions to collaborate together to create visible decision making on current and future challenges whilst always keeping in sight the company objectives. The complexity of supply chains as organisationscontinue to expand across continents is also growing and traditional push models are no longer meeting requirements. The implementation of a demand driven pull model requires the input from many functions, across several organisations and possibly countries and has turned a simple 4 step process into a all encompassing and sophisticated 9 step process. Today’s market environment as well asorganisations’ drive for leadership in supply chain is bringing new requirements to the table. A well defined collaborative process to develop the demand plan The aptitude to translate the plan into What is driving this change? • Geographical expansion of supply chains • Increasing complexity in sensing demand
1990 +

functional pictures to achieve consensus – including financials The ability to predictthe future through modelling and scenarios and therefore trade-off analysis A common KPI measurement framework to assess performance against plan on an ongoing basis

S&OP process changing over time...

From 4 to 9 steps

2000 +

2005 +

• Multiplication of the supply process • Increasing number of stakeholders

Process integration with business intelligence
SALES DEPARTMENT

SalesForecast Adjustment
FORECASTING TEAM OPERATIONS DEPARTMENT S&OP MANAGER

S&OP for the 21st century
The S&OP process has evolved dramatically over the years as organisations have realised the potential it holds and because pressures on margins, the need to increase shareholder value and to run a profitable and predictable supply chain are ever more present.

Baseline Forecas ng

DemandReview Mee ng

Opera ons Planning

Pre-S&OP Mee ng
+ Directors

S&OP Mee ng
+ Execu ves

Marke ng Forecast Adjustment
MARKETING DEPARTMENT

Performance Management

SALES & OPERATIONS PLANNING Supply chain profitability for superior business performance

TXTPERFORM2008: creating value through integrated functionality
TXTPERFORM2008 enables an unprecedented level of business processintegration that supports the most sophisticated S&OP processes. TXTPERFORM2008’s supply chain intelligence capabilities drive fact based decision making, empowering users to assess the cause and effect of their decisions and as such to make trade-off analysis. Based on tangible best industry practices with a Microsoft Excel user interface, TXTPERFORM2008 is the ideal solution for taking anyorganisation’s S&OP process to the next level and forward into their supply chain maturity journey.

S&OP: four pillars to success
The ability to pinpoint the exact benefits organisations are seeing from their S&OP implementation remains a challenge but can be achieved: TXTPERFORM2008 helps organisations overcome some of the key reasons for S&OP failure and realise their goals. Executives are...