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Route to Market & Supply Chain Blog

Learn the 8 Basic Principles of S&OP in Mobile Telecoms

Posted by Michael Thompson on Fri, Jul 15, 2011

In an earlier blog Reasons for establishing S&OP in Mobile Telecoms, I recounted a success story of S&OP in a mobile telecoms company. Reasons for establishing S&OP in Mobile Telecoms.

I continued my dialogue with the Senior Telecoms Executive – let’s call him Colin.  His company operates in several markets in Africa.

S&OP in Mobile TelecomThe challenge we set ourselves was to design an S&OP process for a mobile telecoms company.

In the first instance we explored some of the basic features of S&OP. 

Mike: Do you remember how we started in your last organisation?  (Colin used to work for an FMCG multinational in Africa.)

Colin: I seem to remember we started with some principles.

Mike: Exactly.

Colin: So what are the basic principles of S&OP in mobile telecoms.

Mike: To a great extent the same basic principles apply in mobile telecoms than they do in any other type of business.

Colin: How can that be? Mobile telecoms is an entirely different business.

Mike: You are confusing process design with basic principles.  While the design of S&OP in a mobile telecoms business is different, the basic principles still apply.

We then spent some time discussing the basic principles of S&P in any business and tested these assumptions in mobile telecoms.

Here is the list of 8 Basic Principles of S&OP in Mobile Telecoms:

  1. S&OP is a collaborative cross functional process that engages all functions to produce an integrated set of plans that all are committed to support. 

  2. The plans cover a sufficient time horizon to enable resource planning & support the annual & strategic planning processes.

  3. Its purpose is to balance demand & supply in the supply chain. 

  4. It is performed periodically – monthly or weekly.

  5. It aligns operational plans to high level business & strategic plans.

  6. It can be implemented at a market, regional or global level.

  7. At its core is a single set of numbers for the business.

  8. It uses standardised processes, calendars of events & meetings &  KPIs.

There then followed a further discussion about the design of S&OP in mobile telecoms. 

I will; discuss this in a later blog.

S&OP in Mobile Telecom in Africa

Tags: Telecoms, Michael Thompson, S&OP, Forecasting & Demand Planning, Doing Business in Africa

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