A surprising number of organizations don’t have an S&OP process in place when they really need one, and even more miss out on its potential benefits.
Watch the video to find out the top reason S&OP isn’t working as expected.
Why Your S&OP Process Might Be Underperforming
If your Sales and Operations Planning (S&OP) process isn’t delivering the results you expect, you may want to take a closer look at how meetings are structured. Too often, S&OP meetings are bogged down by endless discussions with no real decisions being made. This not only wastes valuable time but also undermines the entire purpose of the S&OP process. A shift in focus is needed to ensure the process drives actual outcomes.
Moving from Discussions to Decisions
The most common problem with S&OP is the emphasis on discussions rather than decisions. When meetings stretch for hours without yielding a clear outcome, it’s a sign that the focus is on debating rather than making decisions. The key to transforming your S&OP process is to ensure meetings are designed to be decision-making forums. This requires preparation—everyone involved must come to the table with a clear understanding of the data, the issues at hand, and the proposed solutions. Well-prepared participants can make informed, confident decisions during the meeting, ensuring time is spent productively.
To make meetings more efficient, it’s essential to prioritize the creation of a structured, actionable management deck. With the right preparation, executive leaders should be able to look at the data, grasp the issues, understand the recommendations, and make a decision quickly. There shouldn’t be the need for prolonged discussions or delays.
The Executive Team’s Role in S&OP
S&OP processes are designed primarily for senior leadership—the MD, CEO, and executive team members who make high-level strategic decisions. For this reason, the information presented must be clear, concise, and actionable. The executive team doesn’t need to dive into the details but should be able to assess the recommendations based on reliable data and thorough analysis.
A well-executed S&OP meeting ensures that executives receive the right information at the right time, enabling them to make decisions quickly. There should be no ambiguity about the data or the recommendations; they must be clear, financial-backed, and aligned with the company’s strategic goals.
The Benefits of Structured S&OP Meetings
When meetings are structured around decision-making, they not only help speed up the decision-making process but also ensure alignment across the organization. Properly executed S&OP sessions can improve forecasting, streamline operations, and align strategies with realistic, actionable goals. Instead of spending hours in lengthy debates, the team can focus on solving issues and identifying opportunities for improvement.
Related articles on this topic have appeared throughout our website, check them out:
-
Give Your Operations A Productivity Boost – Increase Your Bottom Line Profit
- Sales & Operations Planning (S&OP) – The Greatest Success Factor
- S&OP 12 Key Success Factors
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated February 08, 2023, under the title “S&OP: Why It Fails“.
