Checklist for S&OP process effectiveness

Many companies invest significant energy and resources into establishing a robust S&OP framework, and often with success. They enjoy significant business benefits from balancing demand and supply while aligning various business functions to the organization’s strategic goals.

However, the subsequent challenge often receives much less attention: how to maintain its effectiveness over time. As business environments evolve and organizational priorities shift, there is a risk that even the bestdesigned S&OP processes can deteriorate or become less aligned with business needs.

Victim to its own success

When processes flow smoothly and targets are consistently met, there is a natural tendency to shift focus away from the very systems that facilitated the success. This is often seen in S&OP. When everything appears to be going well, the drive to maintain and improve the process often diminishes. Maintaining the vigour and relevance of S&OP requires continuous attention and adaptation. It is about fostering an environment of ongoing improvement and engagement.

Ensuring engagement

S&OP maturity development in the company should be based on a clear roadmap, to ensure the process evolves from a supply chain process to a business management process. By building a truly cross-functional business planning process, a company can ensure continued engagement of the commercial and financial, as well as operational, functions in the company.

Download the ‘Checklist for S&OP process effectiveness’

Supply Chain Movement and Involvation created this practical and actionable checklist aimed at ensuring that your S&OP process remains a vital, effective process for making the right decisions and driving business success.

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