Next-Generation Sales and Operations Planning: Tracking the Evolution from Tactical to Strategic Operational Excellence

A look at how progressive companies are taking a strategic, best practices-based approach to S&OP to enhance operations with increased visibility, reduction of costs and improved business performance


  • Leadership education, total involvement and accountability of senior financial and corporate management in driving the integration of S&OP with business management processes.
  • Formalizing the new S&OP process and implementing a quantitative modeling "what-if" framework based on key performance indicators designed to make the decisions made within S&OP more optimal.
  • Enhancing quantitative modeling with qualitative insights tied to each planning category, including the assumptions, risks and opportunities associated with the plan.
  • Adoption of advanced supply and demand chain technology to ensure cohesive S&OP collaboration, with integrated workflow processes and the assurance of data accuracy and integrity.
  • Leveraging an enterprise information technology platform, as well as advanced supply and demand chain solutions and analysis capabilities, to facilitate data flow and decision-making that enables alignment of the S&OP plan with the company's financial goals.
  • Coming to a consensus on a single operating plan that supports a company's overall strategy and business plan — the detailed plans are integrated horizontally across business functions and vertically from strategy to execution.
  • Focusing on continuous reconciliation, managing gaps and alternative scenario plans.
  • Stronger financial modeling beyond the near term to determine the optimal economic responses to changes in customer needs and demand.
  • Global alignment across regions and operating divisions involving collaboration with key levels of management, sales and operations.



S&OP Best Practices Create Measurable Business Value











About the Author www.jda.com


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