Consulting Services

 


S&OP Planning Services

Some form of traditional supply chain planning exists in all organizations. In many cases, however, these processes focus only on the short-term execution horizon. ChainSequence experts transcend typical Sales and Operations Planning (S&OP) or Integrated Business Planning (IBP) programs with data-driven analytics and forecasting tools that enable your business to achieve a more beneficial, long-term view.

ChainSequence’s S&OP planning services were meticulously developed to work in concert with traditional supply chain planning practices, allowing your business to gain evidence-based insights and measure progress within a well-structured, inclusive program. With our expertise, gain the capability to maintain and drive focus, collaboration, alignment and synchronization among all of your business units. We can help your enterprise keep the emphasis exactly where it should be—on the strategic horizon where proactive change positively impacts execution.

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The journey of a thousand miles begins with one step

Lao Tzu

While the concept of S&OP planning is certainly not new, developing an effective S&OP process takes time. ChainSequence also understands that S&OP Planning depends on periodic reviews and updates which can be critical to the success of your organization’s ability to achieve its long-term strategic goals. Our team conducts the crucial due diligence required to ensure that your S&OP planning efforts enable effective supply chain management that is appropriate for your unique organization. Whether you’re looking to implement a new process, or improve a program already in place, the ChainSequence team has the experience and expertise to help your business develop and navigate the best path toward long-term growth and success.

The Five-Step S&OP process:

1 — Innovation & Strategy

Review and discuss product portfolio performance and roadmap update demand shaping input from Product Marketing / Product Management and Marketing. KPIs review should include discussion on opportunities for improvement.

Step Result: Product roadmap updates, Product portfolio adjustments, and SKU rationalization actions for improved demand and supply shaping

2 — Demand Management

Develop a single, unconstrained view of the forecast utilizing input from a variety of sources, including AI/system-generated demand plans and market and customer trends and intelligence. Prior to this meeting, there may be multiple meetings grouped by product lines or sales channel to review opportunities and risks that may shape the ultimate consensus demand plan.

Step Result: 18+ month unconstrained consensus demand plan

3 — Supply Management

Review the current demand plan, evaluating risks and assumptions compared to target inventory levels, and generate a supply response plan. Discuss supply scenarios to address constraints, procurement or logistics issues. Balance supply with demand and develop a preliminary constrained demand plan. Review longer-term production capacity for capital planning and investment.

Step Result: Supply chain network gap-closing scenarios to unconstrained demand plan and preliminary constrained demand plan

4 — Operations Alignment

Review proposed operating plan compared to financial plans based on preliminary constrained demand plan. Focus on revenue shortfalls, production constraints, and excess inventory.

Discuss scenarios and trade-offs to present a recommended operating plan to the Executive Management Team for final approval.

Step Result: Proposed operating plan with demand and gap closing scenario actions

5 — Business Alignment Meeting

Focused Executive review to discuss and approve a single operating plan based upon recommendations. If necessary, approve actions to close gaps to the financial plan (budget). Review business performance and assign actions to address issues and improve performance.

Step Result: Final constrained operating plan with actions to be taken in subsequent S&OP cycles

Customer Service
▪  Customer Service/Satisfaction
▪  Forecast Accuracy
▪  On-time Delivery
Revenue
▪  Total Revenue
▪  Productivity/Responsiveness
Cost
▪  Shipping/Expedites
▪  Labor
▪  Obsolescence
Trade Working Capital
▪  Inventory Levels/Safety Stock
▪  Order-To-Cash Timing

The Benefits of S&OP

 Improved customer service levels and satisfaction
 Forecast accuracy improvment
 Revenue improvement and increased productivity and responsiveness
 Lower expediting event and Improved obsolescence costs
 Ability to make better informed decisions
 Improved cross-functional collaboration, consensus, communication, and visibility
 Lower expediting events and improved obsolescence costs
Overall Result: One Single Operating Plan – One Statement of the Truth

How ChainSequence Can help your organization:


Ready to jumpstart your own S&OP program?
Talk with us today to get on your way!