3. Sales and Operations Planning Process Guide
STEP 1: Product Portfolio Planning
PURPOSE INPUTS: OUTPUTS:
• Agree on the existing & new •Technology impacts •Forecast for the demand plan w/
product forecast •Product portfolio plan key assumptions and timing
•Business stage gate plan •New product summary
• Agree product discontinuation •Regulatory initiatives •New products implementation
& SKU rationalization plans •SKU rationalization planning plans with timelines
•Marketing new product strategy •SKU rationalization plans
• Give visibility to stage gate
•Acquired products •Agreed actions and minutes
projects and new product
pipeline
REQUIRED BEHAVIOR LEAD TIME:
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•_____ days
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers CYCLE TIME:
•Exhibit passion for the business •Every _____ business day of the year
•Strive for continuous improvement
•Create environment to WIN
Owner / Facilitator / Participant: TOOLS:
•Owner – Marketing Managers New Products; Business •ERP, Spreadsheets, etc.
Manager (profitability) SKU rationalization
•Facilitator – Product Managers, S&OP Director
•Participants – Marketing Managers, Sales, Product ROLE:
•Ensure product portfolio planning is integrated into
Managers, Technology Director, Supply Managers, SBU
VP, S&OP Director S&OP process 3
4. Sales and Operations Planning Process Guide
STEP 2: Demand Planning
PURPOSE INPUTS•Future Sales Forecast, (graphic)
OUTPUTS
•Historical Sales Forecast (graphic) •Unconstrained & realistic demand
• Generate an agreed to •Changes from previous forecast forecast
unconstrained demand forecast •Current targets, 3-years actual data
•Forecast assumptions highlighting
•New Product Plan & Assumptions
•External Assumptions changes to previous assumptions
• Both volume & value •Surplus Inventory •Defined gaps from previous forecast and
•Pricing, Senior Mgmt / Corporate, Promotions, current target
• Including Assumptions Product Mix, Competitive, Customer,
•Contingency plan for gap closure
Cannibalization
• Identify gaps in demand •Statistical Forecast (inc Historical data) •Action plan achieving demand forecast
•Previous Actions •Summary of the demand planning meeting
• Develop an action plan to close •Sales & Marketing Calendar
•Catalogue Placement / Ads-Drops
the gaps •SKU Rationalizations
•Anomalies
• Validate the demand plan •Custom Order Demands
•“PORTERS 5 FORCES”
REQUIRED BEHAVIOR LEAD TIME:
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility • _____ Days
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers CYCLE TIME:
•Exhibit passion for the business
•Strive for continuous improvement •Every _____ business day of the month
•Create environment to WIN
Owner / Facilitator / Participants TOOLS:
•Owner –
•ERP, Spreadsheets, Graphics, Balanced
•Facilitator – Scorecards, etc.
•Participants –
ROLE: •Establish process and procedures to ensure demand
planning is integrated into S&OP process
4
5. Sales and Operations Planning Process Guide
STEP 3: Supply Planning
PURPOSE: INPUTS:
OUTPUTS:
•Ensure the demand plan can be met •Unconstrained demand plans
within the strategic constraints of the •Constraints – Manpower, Financial, LT, •Purchase plan
business Space •Custom order demands
•Actual inventory & SMOG
•Inventory plans & actions
•Develop alternate supply plans or •Inventory Targets
•New product requirements •Issues & decisions required
actions if it cannot be met
•Acts of God •Need for future capacity
•Synchronize Demand, Supply and •MOQ / MOV •Agreed actions and minutes
Inventory plans •Vendor duplicity
•Vendor Quality Problems
•Indentify long term capacity •Anomalies
requirements •Returned Merchandise
REQUIRED BEHAVIOR LEAD TIME:
•Exclusive use of the formal system of policies, processes and procedures
• _____ days
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers CYCLE TIME:
•Exhibit passion for the business • Every _____ business day of the month
•Strive for continuous improvement
•Create environment to WIN
Owner / Facilitator / Participant: TOOLS:
•ERP, Spreadsheets, Graphics, Balanced
•Owner – Scorecards, etc.
•Facilitator –
•Participants – ROLE: Coordinate supply planning process to service
customers and reduce working capital 5
6. Sales and Operations Planning Process Guide
STEP 4: S&OP Integration & Reconciliation
PURPOSE: INPUTS OUTPUTS
•Resolve availability constraints •Reference to Product Portfolio •COLLABORATIVELY:
•Ensure plans aligned with strategy / Review • Constraints minimized
business plans •Issues from Demand Reviews • Fulfillment plans aligned with
•Contingency planning •Issues from Supply Reviews
•Supply gap resolution
strategy and business plans
•Key Performance Indicators:
•Prepare open issues deck for senior • Contingency plans in place
DIFOT, Order Accy, Fcst Accy
management approval/decision •Outputs from Portfolio, Demand,
• Open Issues Deck ready for
Supply meetings senior management
•Business Plans - How we get there action/direction
•Strategic Plan - End Goals
REQUIRED BEHAVIOR LEAD TIME:
•Exclusive use of the formal system of policies, processes and procedures • _____ days
•Personal accountability & responsibility
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers CYCLE TIME:
•Exhibit passion for the business • Every ____ business day of the month
•Strive for continuous improvement
•Create environment to WIN
Owner / Facilitator / Participants: TOOLS:
Owner – •ERP, Spreadsheet, Graphics, Balanced
Facilitator – Scorecards, etc.
Core Participants –
ROLE:
Closure of demand & supply gaps; prepare open issue
deck for leadership decision 6
7. Sales and Operations Planning Process Guide
STEP 5: S&OP Meeting
PURPOSE/AGENDA OUTPUTS:
INPUTS:
•Provides focused, aligned, •Updated financial & business
•Open Issues Deck from S&OP
strategic plans across all functions plan _____ months out
integration effort •Gaps resolved
•Review Current business status - vs
•Product Family reviews
Previous Year, Budget, Last •Action plan to address cited
•Financial Forecast
Forecast, Strategic Plan opportunities and risks
•Updated KPIs & Metrics /
•Review & Resolve remaining Gaps •KPI improvement plan
Scorecards •Communication assigned of
•Visibility of Opportunities and
Risks key decisions & actions
•Review KPIs & Metrics
REQUIRED BEHAVIOR LEAD TIME:
•Exclusive use of the formal system of policies, processes and procedures
•Personal accountability & responsibility
•_____ days
•Bring bad news early & recommend good solutions
•Silence is acceptance
•There is ONE set of numbers CYCLE TIME:
•Exhibit passion for the business • Every ____ business day of the month
•Strive for continuous improvement
•Create environment to WIN
Owner / Facilitator / Participant: TOOLS:
Owner – •ERP, Spreadsheet, Graphics, Balanced Scorecard,
Facilitator – etc.
Core Participants –
ROLE:
Facilitate the meeting & issue resolution
7
