Collaboration is the key for a good sales and operations plan

First of all, let’s answer at this question: what’s sales and operations planning and what are the advantages of S&OP process? S&OP (or IBP, Integrated Business Planning) can give a number of benefits such as greater visibility of the demand and supply across the enterprise, improved inventory management, increased promotional planning, increased accuracy in budget forecasting, and an improved product lifecycle management process.

Interesting isn't it? The second common question is: how I can reach these results?

A typical S&OP (or IBP) process is made in 5 steps:

• Gather and Manage Data
• Develop Demand Plan
• Supply Planning
• Reconciliation of Plans, Pre-S&OP Meeting
• Approve and Release, Executive S&OP Meeting

To govern such a complex flow, it is necessary that different figures participate in the development and each provide their own contribution:

• Executive management
• Sales & marketing manager
• Operations manager
• Demand planner
• Supply/Production planner

So, the challenge is to implement a virtuous collaboration process where all people involved use the same sets of data and share the same objectives on a regular bases during the scheduled meetings (Pre and Exec S&OP meetings).

To govern such a complex process a software can give you and hand!

With TIA A3 you can easily reach the following goals:

Goal #1: Free yourself from the calendar. You don't want to review your plan (and your performance) only once a month. You need more flexibility to respond to any events that have an impact on your S&OP objectives and TIA allows you to work for exceptions and focus your attention where it is needed.

Goal #2: Collect and analyze your data faster. Sometimes this operation it takes three or four weeks - or more - to do one cycle of S&OP data collection and analysis! With TIA and with its standard interface and monitoring & alerting system you can smoothly use the data into the system and return them to the ERP.

Goal #3: A single application with deep data Drive S&OP and supply chain management from a single application. Eliminate the need to tap into multiple systems or integrate data in various formats from several applications that each support only a single function. Plan both the volume and mix levels at the same time. TIA can ensure that the analysis is accurate and meaningful thanks to its modules for S&OP and Supply Chain management integrated.

Goal #4: Collaboration and consensus-building. Bring together everyone who can help resolve an issue in a collaborative environment. With TIA you can obtain consent between all interested parties, internal or external, send messages, request opinions and speed up the decision-making process.

Goal #5: Continuous monitoring of KPI. Actively monitor the plan. TIA intercept immediate alerts to any deviations that put the plan at risk. With TIA you can immediately understand the financial and operational impact of these events, and then respond quickly with the corrective action.

With its built-in checks and balances, S&OP brings an end to excuses and drives accountability.

The results of such collaboration are often impressive. Studies show that compared to their peers, high performing S&OP-driven companies on average experience:

• Up to 5% more sales through enhanced inventory management
• Up to 30% decrease in inventory with constant availability of goods
• Up to 30% reduction of markdowns
• Up to 95% improvement forecast accuracy
• Up to 99% service level

Collaboration could not run smoothly with Excel files, too complex, too many data, too many people working on it…

A modular software like TIA A3 can help you collect all the data and share it with the right people at the right time!