Sales and Operations Planning

We’ll increase your forecast quality and delivery reliability.

Optimal alignment of supply chain networks

Improved planning and higher delivery reliability through coordinated sales and operations planning

Consistent operational planning – Sales and Operations Planning – is necessary to control and target complex supply chain networks.

Against the background of increasing fluctuations in sales and procurement markets, you cannot maintain delivery reliability with simultaneous cost efficiency without overarching planning. We’ll help you with the introduction and implementation of an S&OP concept. 

We’ll support you in developing an individual S&OP concept

  • The conception of an individual S&OP process
  • Introduction and piloting taking into account the procedural and organizational framework conditions
  • Digital transformation of S&OP and digital interfaces
  • Vendor-independent software selection and implementation

What are the reasons for dealing with Sales and Operations Planning?

In practice, planning is often impaired by systemic or procedural weaknesses, which is time-consuming and costly. This can include inefficient support from the IT systems, a lack of system integration or a lack of cooperation across departmental and national borders. 

The obvious problems then show up in backlogs, dissatisfied customers due to poor delivery performance, high inventories, cash-flow problems and “finger-pointing” to the other departments. An overarching process for sales and operations planning enables the weak points to be brought under control and the quality of planning to be improved.  

S&OP Tools und Software

Advice

If the S&OP processes are successfully introduced, the sales data can be compared with the production data on a rolling basis. There are different approaches to supporting this process with software. We would be happy to advise you independently on the current solutions on the market.

Our objectives 

Sales & Operations Planning (S&OP) is a holistic process for cross-departmental and cross-location corporate management. The result is a binding production and delivery plan coordinated with all areas. The planning frequency and the planning horizon depend on the specifics of the industry. Short product life cycles and high volatility in demand require a tighter S&OP than products with constant consumption. If implemented successfully, the S&OP process also enables effective supply chain management.

S&OP can be tracked on three levels: operational, tactical and strategic. An exchange of information, decisions and data takes place between these levels. 

 


Success factors

What are the biggest advantages of a functioning S&OP?
  • Higher delivery reliability with simultaneously lower finished stocks at make-to-stock companies
  • Higher delivery reliability with simultaneously lower backlogs and shorter delivery times for make-to-order companies
  • More stable production rates and less overtime, which leads to higher productivity
  • Increased visibility of future capacity problems
  • Improved cooperation between the responsible areas (sales, operations, controlling, product development)
  • The regular and joint updating of the planning leads to a uniform, improved and more reliable forecast.

S&OP

Take away

The digital transformation of S&OP is of great importance for target accuracy and effectiveness. A cross-departmental analysis and digital reporting then lead to a coordinated production and delivery plan.

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