S&OP- Agenda

SO WHAT'S DISCUSSED IN A S&OP MEETING? (Or ... what they really should be discussing! ) HISTORICAL PERFORMANCE ANALYSIS Review Last Period (Week/Month) and Year to Date Review Financial KPIS Review Forecast Accuracy at Product Family Level Review Forecast Bias at Product Family Level Review Operations Plan Accuracy at Product Family Level Review Cost to serve at customer account level REVIEW INVENTORY AND CUSTOMER SERVICE Review Historical wastage and Returns Projected cash stuck in inventory Projected annual inventory turns Safety Stocks for Major Events Stock Liquidations Customer Service Levels REVIEW PLANNING CRITERIA ( WHERE NEEDED) Key Account Orders Key Customer Promotions National Campaigns Review warehousing /Manufacturing capacity Review any changes in prices Review Product Range changes Review merger/divestment of business areas Review any planned systems functionality changes Review Key manpower and resourcing issues Review product Hierarchy changes 6. CONTINUOUS IMPROVEMENT PLANS AND INITIATIVES Update on Lean Projects in specific areas Update on Cost Reduction Programmes Update on Inventory Reduction Programmes Update on any systems implementations or changes Updates on key new resources Updates on any future training opportunities / needs REVIEW DEMAND PLAN (14 TO 52 WEEK HORIZON) Aggregated Demand Plan (Category/ Brand by Month) Forecasted Demand Vs Sales Vs Financial Targets GAP Analysis Major events and promotions forecasts Planned New Product launches Review any planned Sales Organization Restructuring Major competition activity S&OP ACTIONS AND NEXT STEPS Market Share Review Summarise detailed action points and ownership. Summarise escalations and next steps Specify post S&OP communication and ownership Agree any agenda changes for next S&OP Meeting REVIEW SUPPLY / PRODUCTION PLANS Expected Production constraints (14 to 52 week horizon) Alternate sourcing options ( if needed) Production Prioritisation ( for key products / customers) O Special pack requirements Review Manufacturing Capacity utilization Of course, from time to time some of these may become irrelevant and may be dropped, while other points may assume higher priority.. The ground rule for any additional/new agenda points should be – IF YOU DON'T HAVE NUMBERS TO SUPPORT IT , IT DOSENT GET TABLED!. S&OP is too important to start getting into opinion driven discussions JAY SHACMA Jay. [email protected]