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DynaSys Sales & Operations Planning Software solutions are integrated, flexible and customizable, designed to facilitate communication and decision-making to balance supply and demand.
Faced with an unstable economic environment in which change is the only certainty, companies need to organize and implement an efficient and accurate planning process. Review the plan to ensure that it is acheivable and meets the company’s targets for revenue and profitability. The United States relied on net imports (imports minus exports) for about 45% of the petroleum (crude oil and petroleum products) that we consumed in 2011.
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The benefits of effective S&OP are compelling - lower operating costs, reduced inventory requirements, and top-line growth, and top-performing S&OP companies are realizing these benefits and in the process gaining competitive advantage.
Wholesale Distributors are faced with growing costs, shrinking margins, new competitors and demanding customers. Long advocated by expert observers of the supply chain scene, the Sales and Operations Planning process (S&OP) has reached a point of broad adoption. This article outlines study findings, provides key insights on challenges and opportunities, and offers a path forward for those seeking to join the ranks of S&OP top performers. First emerging well over 30 years ago, S&OP has moved from business buzzword status to mainstream adoption among the world’s large supply chain-focused organizations.
The appeal of S&OP lies in its ability to drive dramatic improvements in key business performance metrics. The concept of Sales and Operations Planning (S&OP) is a month-based business process aimed at achieving a balance between a company’s overall demand and supply (availability). Implementation at several levels in the company including those with executive responsibility for business units, e.g.
Enabling a company's management to have a holistic view of the company and to have a window into the future. You can read more about our offering within Supply Chain Planning or about our partner in the area, InSync. Welcome to this year's Supply Chain Conference - Supply Chains of Tomorrow, with speakers from Starship Technolgies, The Absolut Company, Harley Davidson and more.
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Excellence in S&OP plays a foundational role in optimally balancing supply and demand, aligning goals across the enterprise, and focusing on financial objectives. The highlights of the ground breaking report will be delivered in an upcoming Videocast from Supply Chain Digest and the Supply Chain Television Channel. Effective sales and operations planning can help your organization meet its profitability objectives. As a result, organizations must spend a lot of time validating data by manually comparing it to source systems or the information stored in shared drives. Also, because uncontrolled spreadsheets cannot be automatically refreshed with up-to-date data, it is hard for organizations to create valuable what-if scenarios, since the data they extract from spreadsheets may be out of date by the time they get around to looking at it.
Furthermore, Supply and Demands departments need to be able to easily and frequently communicate with one another.
Excel is here to stay – what does this mean for the future of sales and operations planning? Despite the inability of static, uncontrolled spreadsheets to support collaboration or make up-to-date data immediately available, research shows that Excel is here to stay. Millions of users enjoy its raw analytic power, flexible formatting capabilities and options for enhancing the look and feel of reports with charts and graphs.
What if there was a way for your organization to keep working in native Excel while automating the processes related to S&OP to save time and reduce risk?
Automated S&OP processes come with a host of advantages and are supported by a workflow engine to facilitate collaboration, business rules to protect data and a central database to store and access up-to-date information. Vena makes Finance, Accounting and Business processes more efficient by embracing the best of Excel® within an enterprise-class corporate performance management solution. This requires insight to the company’s strategic objectives and operations to achieve the optimal levels and product mix.
Gather input from as many sources as you can, and collaborate on the numbers until everybody agrees.
Look at the possible results of unplanned supply chain interruptions for key raw materials or components, and make plans for how to deal with these events if they arise. As a result, top performing organizations find that S&OP is 68 percent more effective at driving benefits than it is for other organizations. We define Sales & Operations Planning as a collaborative decision-making process used to develop and align time-phased demand, supply, and financial plans in support of the overall business plan. A current Google search turns up over 860,000 entries and a search on professional networking site, LinkedIn, finds more than 16,000 individuals who list the term “S&OP” in their profiles.

Our experience indicates that effective use of S&OP can help grow the top line of the business while reducing operating costs and reducing inventory required (see Exhibit 2). An effective S&OP process links together business planning and master planning within a company. The annual budget process that many companies work with is strongly connected to business planning. The balance must exist both at the aggregate level, in terms of volume, and on a detail level, in terms of product mix.
Many are using uncontrolled Microsoft® Excel® spreadsheets to aggregate, share and report on data. The Supply Planner needs to communicate with a variety of departments in near real-time to ensure a viable plan has been created and can be carried out.
Few business improvement initiatives match the economic return that implementing an effective S&OP process can generate. Sales and operations planning is also often based on product families, but has physical units [Nr, Kg, Volume, etc] as a base. Sales and operations planning is focused on volume balance and is a dimension-oriented type of planning.
However, Excel lacks workflow capabilities or security features that prevent users from making unauthorized changes to data, formulas and models. However, static spreadsheets do not support communication, forcing users to resort to emailing each other back and forth.
Sales and operations planning is a rolling plan that provides monitoring of the business plan. The mix (details) is a more transaction-oriented type of planning that handles mainly material and detailed planning. S&OP gives a company the opportunity to control resources such as plant, machinery, personnel, etc.

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