With supply chain decisions reverberating across the entire business, the outcomes of quality decisions versus mistakes has a direct impact upon service levels, cash flow and profitability.
S&OP can be the difference.
Effective Sales and Operations Planning (S&OP) enhances the decision-making quality in a business by providing visibility and allowing for agility in portfolio, demand, supply and logistics management. It is a well-established proven framework; however, many large organisations currently are unable to effectively leverage its benefits.
Supply chain decisions have immediate and direct influence on service levels, cash flow and profitability. Leading organisations recognise this and are better integrating their supply chains with the strategic goals of their business. Sales & Operations Planning (S&OP) is a proven methodology organisations turn to, or in many cases reinvigorating to execute this. S&OP, through enhancing responsiveness as well as forward visibility is able to establish sustainable competitive advantage.
In its most basic form, S&OP dictates how the various functions in an organisation work together through structured and regular meetings. More sophisticated S&OP processes instil a culture of accountability and prompt forward thinking in decision-making.
GRA recognises Sales and Operations Planning as a powerful on-going management and performance measurement process that integrates business plans, financial budgets, operational planning and execution.
The competitive advantage of S&OP is that it prompts leaders to first get the fundamentals right. In doing so, it is a framework that cultivates accountability and forward thinking through collaboration. Not all organisations can be successful, but chance will always favour the connected organisation.
S&OP should be viewed as a vehicle enabling an organisation to leverage such foundations to transform a good organisation that gets the basics right, into a leading organisation in terms of innovation, service levels, cash-flow and sustainable profitability.
The Beer Game is a supply chain simulation that lets the players experience the pressures of playing a role in a production/distribution simulation to develop their Supply Chain understanding. GRA regularly run Beer Games for our clients. Find out more on our Training & Education page.
We invited GRA to run a workshop to educate the broader business on S&OP, help us design a next level S&OP process and map out the requirements and next steps to implementation. We have made significant progress with S&OP since the workshop, the key aspect is that it has been accepted at all levels and there is commitment to the process which was the big hurdle.
– Lee Rawstron, Head of Operations ANZ, Sinochem Australia