Checklist for Sales & Operations Execution

Sales & Operations Execution (S&OE) is on the rise. An increasing number of companies are realizing that a more responsive approach to Sales & Operations Planning (S&OP) is necessary to remain effective in today’s rapidly changing conditions driven by increased competition, complexity and demand volatility. A solid S&OE process is essential to manage short-term operations and to maintain focus on mid-term tactical planning and decision-making.

Many companies still manage short-term operations through their S&OP/Integrated Business Planning (IBP) process, simply focusing on the next month instead of the typical 3- to 18-month horizon for which the process is intended. This leads to firefighting situations with a doubly negative effect. First of all, the S&OP/IBP process is not suitable for the short term because it is too rigid and doesn’t lend itself well to quick decision-making. Secondly, using it for the short-term planning takes time and energy away from mid-term tactical planning, which is crucial to run a business effectively. Therefore, having a solid S&OE process in place can significantly enhance the strength of the S&OP/IBP process.

Preparing to execute

Companies should make a clear distinction between how to manage the short-term and mid-term planning. The S&OP/IBP process delivers a sound tactical plan that serves as input for the short term. The S&OE process bridges the gap between this tactical plan and the day-to-day execution. It is where the final preparation for execution takes place. The S&OE process should therefore facilitate quick decision-making on a detailed level. It has to run at a high frequency and involve people who have the mandate to make decisions, based on clear guidelines. Escalation to senior management should only be necessary in exceptional cases.

Download the Checklist for Sales & Operations Execution

The supply chain consulting firm Involvation and Supply Chain Media have created this practical checklist for Sales & Operations Execution. Answer these 10 questions to evaluate your organization’s S&OE process.

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