S&OP process aims to maximize the ability of the company to verify, at least each month and in a formal way, the Business Plans progress with a deep integration of at least three functional plans: the sales plan, the  production plan, the financial plan.
The final goal is to master, at top management level, a solid decision-making process in order to lead the company to the achievement of its strategic goals, and to serve as an input to the functional programs (sales / operations / finance, etc.) and so on.
The key point of the program is the top management commitment  to pursue with tenacity and perseverance a method  used successfully, since ‘80s, in well recognized leading companies.

MAIN STEPS TO IMPLEMENT S&OP
S&OP is a five-step monthly process which needs to be executed regularly, by product family.
After that, for each product family, you need to set a monthly sales plan with a horizon of at least twelve months.
Consequently,  the  production plan will be updated, with the scope to balance demand and supply ensuring availability of resources to meet demand requirements.
This will also be linked to the financial requirements needed to support the targeted level of inventory or backlog.
We have  successfully implemented various S&OP  processes.

KEY BENEFITS

• More reliable business plans
• More effective decision making process
• Better resource utilization and communication

 

If you are interested, please contact us at info@lovecchioconsulting.it or from the page Contact Us!