Sales and Operations Planning (S&OP) is critical to business success - but not all companies have it in place. DemandCaster's S&OP overview outlines best-in-class processes for balancing demand and supply through-out your enterprise; how to successfully manage this process; and how the S&OP deliverables, actions and outcomes are managed to meet your corporates goals and objectives. For more information, visit: www.demandcaster.com

1. 1 | Plex Systems, Inc. Privileged and Confidential Information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
DemandCaster S&OP
Moving from Reactive to Proactive Planning

2. The Bullwhip Effect
• The bullwhip effect is a distribution channel phenomenon in which forecasts yield
supply chain inefficiencies. It refers to increasing swings in inventory in response to
shifts in customer demand as one moves deeper into the supply chain.
o Dependent demand processing
o Forecast errors
o Adjustment of inventory control
parameters with each demand
observation
o Lead time variability (forecast error during
replenishment lead time)
o Trade promotions and forward buying
o Allocation rules of suppliers
o Shortage gaming or rationing
o Lean and JIT style management of
inventories and a chase production
strategies
o Lot-sizing / Lot-Control
o Cost-based lot sizing
o Shelf Life and Expiration of Finished Goods

3. Sales and Operations Planning
People, Process & Tools
Key Assumptions and
Recommendations
Decisions and
Actions
Risk and
Opportunities
Issues for
Escalation
Major Changes
Explained

4. Why Should You Adopt S&OP?
Source: Top Performer Benefits of Effective Sales & Operations Planning – The Hackett Group

5. Supply
Demand
Monthly
Demand
Planning
Week 1
• Generate [Statistical]
Demand Plan
• Assess previous
period assumptions
• Incorporate sales and
customer input,
including Trade
Promotions
• Generate Revenue
Projections and
forecast statistics
Supply
Planning
Week 2
• Generate Supply
Chain Plan
• Generate Material
Requirements and
Production Plans
• Generate Rough-Cut
Capacity Plan
(optional)
Pre-S&OP
Meeting
Week 3
• Generate S&OP
Reports and Metrics
• Document Supply
Chain gaps &
resolutions
• Document
recommendations
and agenda for
executive meeting
Executive
Meeting
Week 4
• Review
recommendations
and make
decisions
• Resolve
remaining issues
• Review KPI’s
• Make adjustments
and Approve
[Consensus]
Plan
Sales & Operations Best Practices

6. 6 | Plex Systems, Inc. Privileged and Confidential Information. Copyright ©2016 Plex Systems, Inc. All rights reserved.
Looking for more information?
Check out our Resource Center in the event console:
• Customer Case Studies
• Register for weekly demos
• Detailed product tutorial videos
3/15/2017| Plex Systems, Inc. Privileged and Confidential Information. Copyright ©2016 Plex Systems, Inc. All rights reserved.6

7. Contact
Jim Drake
Sales Director, DemandCaster Advanced Supply Chain Planning at Plex Systems, Inc.
jdrake@plex.com
Erick Tomaszewski
DemandCaster Account Executive: Sales Forecasting & Supply Chain Optimization.
etomaszewski@plex.com