Executive Sales & Operations Planning
The executive S&OP is a decision process that pro-actively shapes and balances both demand opportunity and supply capability in line with business strategy and shareholder value creation objectives. Executive S&OP is the process that guarantees “execution to be in line with your supply chain strategy”. A periodical review of the balancing rules at this table, assures that you keep your supply chain strategy in line with the business strategy and performance objectives.
Implementing an Executive Sales & Operations Planning
Sales and operations planning often fails because of a lack of executive involvement. But then again, S&OP meetings often fail to passionate the executives. The key for a breakthrough lays in the way the process is organized and embedded. S&V Management Consultants will assist you with the setup of the preparation activities and with the organization of the pre-S&OP session.
This lieutenants meeting will deal with most of the imbalance issues. Only few involved issues will end up on the executive S&OP table. S&V senior consultants will guide you on how to prepare and organize this “generals” meeting. Our vast industry expertise and senior experience will make the difference and assure a successful executive S&OP. In order to embed this process in your organization, S&V Management Consultants are willing to join your teams ad interim and are willing to take up full responsibility for the process.
Reviewing the S&OP balancing rules
By means of the Equazion tool and methodology we are able to assess and align the business rules that direct this executive S&OP exercise. If the business rules are not in line with the strategy, the S&O balance can be perfect but the result will not meet the targets.
Therefore, the S&OP “rules of the game” should be assessed periodically during the executive S&OP. The assessment must be done from a value creation perspective.
Does it makes sense?
- Does it make sense to keep these items on the product portfolio?
- Does it make sense to offer these items off the shelf?
- Does it make sense to guarantee this service level to those cherry picking customers?
- Shouldn’t we increase the service level for these A-customers?
What are the alternatives?
- What is the impact on profit, on working capital, on RONA?
- Which customers are affected?
Our Equazion approach will enable you to discuss with facts and figures in the language of your shareholder… this will encourage executive decision making. The Equazion software tool will allow you to sustain this exercise by taking out the case by case quest for data and cumbersome one-off spreadsheet model building. It will allow you to embed these activities on your company processes.
Check our S&OP client portfolio.