SMT are specialists as designing and implementing cost effective sales and operations planning business processes, as well as configuring supporting technology platforms.
SMT’s iSOP process "hard wires" facts and data into the S&OP process to achieve "one set of numbers" to drive supply chain decision making. To achieve this, SMT leverages the best in Business Intelligence tools, SAP BusinessObjects, to connect data throughout the supply chain and turn it into information within reach of all within the organisation. Click on Advanced Reporting on the left side bar, or...> Go to an interactive sample of a supply chain dashboard.
iSOP – SMT’s Perspective
Sales and Operations Planningis an integrated business management process through which the executive/leadership team strives for focus, alignment and synchronisation among all the functions of the organisation.
The S&OP process typically includes an updated demand plan, production plan, inventory plan, customer lead-time plan, new product development plan, and the resulting financial plan.
A good S&OP process is the cornerstone of good supply chain management.iSOP – Simplicity and Data Integration
The overarching objective of the SMT’s iSOP process is to provide a robust business process that institutionalises shared, fact based executive decision-making, leading to sustainable improvements in business performance.
The implementation of a S&OP process can be made simple, or extremely complex and laborious. SMT believes in simplicity and focusing on first achieving a single set of numbers, clear and explicit policy setting, and active decision making by executives based facts and data. The later is critical, and SMT focus's on mentoring the meeting process. Good, relevant decisions and therefore tangible business outcomes are a key success factor in maintaining the process in the longer term.iSOP - Key Success Factors
A single set of numbers typically involves challenges such as what is the key data set to be used? A budget, the finance departments forecast, the sales team’s forecast, the agreed final forecast? Who can change the numbers? When are they final? Removing the debate over key numbers is essential.
Explicit policy setting may cover topics such as agreeing and publishing customer service levels for specific markets (which by implication includes accepting a % of late orders), overtime rules, or expedite rules for customer service. Explicit lead times need to be published and authorities to change defined. Sounds like rules and regulations. Well, some are needed… Active decision-making involves ensuring that the S&OP meets regularly (often a challenge), takes active decisions as opposed to active listening to others. If trade offs are needed, such as between service levels and stock levels this group must make the call - and document the call. Facts and data needs to be driven from the demand view and other hard data inputs so that KPI’s such as forecast accuracy and bias, stock turns, manufacturing performance are robust, reliable and visible to all those involved in business decision making.iSOP – Making it Work
iSOP is at its highest level is a facts based decision making process, supported by the most timely, relevant data available from within the business. Focus on the information and the right decisions will follow:
Summary Process flow:
SMT has implemented this process in a number of businesses, from retail to manufacturing and distribution with significant improvements in business outcomes, such as service and inventory.
RIGHT DECISIONS - RIGHT STRATEGY - RIGHT OUTCOMES
For further information on our approach, success stories, rates and people please contact:
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Greg Bywater
greg.bywater@smt.com.au
+61 2 9460 3822