In successful FMCG and other companies, Sales & Operational Planning (S&OP) is the flexible glue that holds numerous processes together ensuring demand and supply are balanced along the chain and most importantly, everyone operates to the same set of unambiguous sales, volume and financial numbers. Without such a process in place, it is highly likely you will be experiencing a number of issues that will be holding your business and your career back.
If you are the CEO of an S&OP-lacking company, how might you feel? Lock the office, close the blinds and sing along. (With due credit to the non-S&OP lyrics from Ultravox.)
AN FMCG CEO's LAMENT FOR S&OP
We wanted to prosper
But missing sales cause me pain
Trying and failing
A key relaunch yet results the same
So very disappointing
Not looking good however hard I try
Makes me a little ill
Targets are missed and I know why
It means nothing to me
This means nothing to me
Oh, S&OP
Just can’t believe it
Falling shares, what every month brings
Forecast appalling
Supply’s not right, we stock the wrong things
No sign of consensus
Little chance of success and we know why
It’s not in existence
Targets are missed and I know why
It means nothing to me
This means nothing to me
Oh, S&OP
It means nothing to me
This means nothing to me
Oh, S&OP
What is required?
Feeling gloomy CEO? You will probably need external help to design and implement an S&OP process that exactly fits the needs of your organisation.
- Design the S&OP process, procedures and documentation.
- Establish an S&OP calendar and meeting schedule.
- Design and implement a set of basic S&OP IT tools.
- Establish an S&OP information management process and a single shared data location.
If you are running an FMCG business without a trace of an S&OP process then you have a huge opportunity in your own hands!
Help! I need somebody.
If you have any Supply Chain or S&OP problems or opportunities you would like to discuss then please reach out to Enchange.com via telephone, email, or live chat.
Tags: FMCG, Dave Jordan, Forecasting & Demand Planning, S&OP
