The critical role of executives in sales and operations planning implementation

Résumé du document

Today's leading organizations understand that reducing inventory, while meeting demand, requires a competent and cost-effective S&OP process. The S&OP function enables organizations to focus on forecasting accurately in order to reduce inventory levels, optimize manufacturing and supply capabilities, to increase the bottom-line and gain a significant competitive advantage. Efficient and effective S&OP processes embrace the suppliers and attempt to link together Purchasing, Manufacturing and Sales. When operating at peak efficiency, S&OP becomes a structured process that brings together the key Executives of the business to review the progress of their plans on a scheduled basis. The questions that arise in this context are: How may a company identify the areas where its S&OP process is weak? What functions within an organization, can hinder the accuracy and viability of its S&OP functions? In this paper, the problem will be built as a parallel to the case of Borealis, a leading provider of innovative and value creating technology for plastics solutions. Before going into the details of our problem, we will provide an overview of the company.

Extraits

[...] This one is executed unless and until it is changed. The planning output of S&OP is fundamentally a simulation of the business. As such, it can be used for "what if" scenario plannings and to develop contingency plans based on different business scenarios. This way, the company can think about the best decisions to make for the future development. After these preliminary steps, the resulting sales and operations plans are communicated to the master scheduling function at least monthly. We can sum up the flows involved in the process this way: o Input: customer demands, forecasts, draft Master Schedule and Replenishment Plan, projected inventory plan and supply constraints. [...]

[...] The Critical Role of Executives in Sales and Operations Planning Implementation Companies involved: Borealis (Plastic Solutions, Germany) Camelot IDPro AG (Consulting) Chanel Corp. (Fragrance and Beauty, France) "It is a problem highlighted at Christmas when many retailers hold up to three month's stock - an estimated national total of $30 billion sitting in warehouses round the country. The potential inventory saving of that is $ 1.5 bn. Saving 20% on that would be billion." Rob O'Byrne, Managing Director, Logistics Bureau Today's leading organisations understand that to reduce inventory, while meeting demand, requires a competent and cost-effective S&OP process. [...]

[...] Then Executive S&OP the Top Management component of Sales & Operations Planning is delivering great benefits to companies using it well. Experience has shown that the most important element of successful Executive S&OP is Executive Buy-in, Support, Leadership, and Hands-on Participation.[14] In order for this to happen well, we need to assign priorities and objectives for the whole business. One plan is developed on-line, collaboratively, including key Suppliers and Customers, and signed off in a formal S&OP meeting attended by representatives of all internal stakeholders as said before, i.e. [...]

[...] Kremzar Chapters Ron Basu, from Emerald data base Irineu G. N. Gianesi, from Emerald data base Thomas F. Wallace, Michael H. Kremzar Chapters George E. Palmatier and Colleen Crum Chapters Interlace Systems' Sales & Operations Planning Survey Uncovers Critical Gaps and Dissatisfaction, Online News published in DMReview.com, June George E. Palmatier and Colleen Crum Chapters Thomas F. Wallace, Michael H. Kremzar Chapters Scott Hamilton Chapters 11,12 John G. Wacker, Rhonda R. Lummus from Emerald data base Customer success story, Consultant Report by CAMELOT IDPRO AG Customer success story, Consultant Report by CAMELOT IDPRO AG George E. [...]

[...] Lummus from Emerald data base Enterprise sales and operations planning: synchronizing demand, Supply and Resources for Peak Performance, George E. Palmatier and Colleen Crum Maximizing your ERP System: A Practical Guide for Managers, Scott Hamilton M.R.P. II: Making It Happen: The Implementers' Guide to Success With Manufacturing Resource Planning, Thomas F. Wallace ERP [electronic resource]: making it happen: the implementers' guide to success with enterprise resource planning, Thomas F. Wallace, Michael H. Kremzar “Improving Sales and Operations Planning Research Findings from Companies Seeking to Improve April 2006, Interlace Systems, www. [...]