This document discusses sales and operations planning (S&OP) at Bengal Plastics Ltd. S&OP is an integrated planning process that aligns demand and supply. The document outlines challenges with the current practice such as poor demand and supply coordination and lack of integration. It then describes the S&OP process which includes generating statistical demand forecasts, production planning, purchasing planning, and cash flow planning. Executive meetings are held to review recommendations and make decisions to approve the plan. Benefits of S&OP include smoothing demand signals, reducing production breakdowns, and aligning production and distribution.

2. Bengal Plastics Ltd.
Bengal Windsor Thermoplastics Ltd.
Dated: 11.05.2022
Venue: Conference Room, BGI-HO- Annex

3. Sales and operations planning (S&OP) is an
integrated planning process that aligns demand
& supply line. It’s a business management
process that empowers leadership to focus on
key supply chain drivers, including sales,
marketing, demand management, production,
inventory management and new product
development.

4.  Consensus in optimizing the balance between Demand & Supply
 Greater accountability of individual plans
 Determine the resource capacity required
 Develop a strategy for fulfillment of the demand
 Establish a company wide game plan for allocating resources to meet demand
for families over an intermediate time horizon

5. Challenges
Poor
coordination of
demand &
supply line
Breakdown in
communication
due to the lack
of quality &
availability of
data
Integrated ERP
with proper
data & BOM
Coordination
between cross
functional
teams
Incorrect
inventories
Lack of
integration with
the financial
cash flow &
budgeting
process
Facilitating the
business
processes of
right- product
/price/ qty, at
the right time,
to the right
customer

6. To Manage
Lack of
information flow
which tends to
business loss
Material /
product
shortages-
increased
expenditure
Unacceptable
Lead times
Bottleneck &
constrains
management
Supply
interruptions,
leading- to
production
delays, on time
delivery issues,
lower profits or
customer’s loss
Excessive on
hand inventories
& obsolesces

7.  New competition
 Price changes
 Technology Adoption
 Consumer Demand
 New Product Development

8. Existing Practice: After S&OP Practice:
Yearly Sales Projection Given by
Sales dept. to Production
Accounts Team raises Material
Requirement to Store
Store raises material requisition to
Purchase Team
Purchase source and arrange the
Materials
Production
Plan
RM / PM Plan
Demand
Plan
Supply Plan
Procurement
Warehouse
Production
Customer
Information
Cash Flow
Purchase Plan
Distribution

9. No visibility of
work process
No
certainty
on work
flow
Repetition of
work by
purchasers
Wastage
in
resources
(3M)
Mis-alignment
of work flow
timing
Never
achieving
On Time
Delivery
(OTD)
No data driven
culture
Always
getting
delayed in
key
decision
making
No integration
with business
goal
Always
taking
decision
based on
force rather
than need
No
accountability
No team
effort
receiving
Poison
distribution of
resources
Paving
towards
responsiven
ess rather
than
efficient
supply
chain

10. • Generate Statistical
demand
• Assess historical
sales data
• Incorporate sales &
customer needs,
including trade
promotions
• Generate revenue
projections through
cash cows
• Prepare
Production Plan &
Convert this to
MRP
• Prepare
Purchasing Plan
• Cash Flow
(Supported by
Finance &
Accounts)
• Generate rough
cut capacity plan
• Generate S&OP
reports & metrics
• Documentation of
supply chain gaps
& resolution
• Documentation of
agendas &
recommendations
for executive
meeting
• Review
recommendations
& make decisions
• Review KPIs
• Make adjustments
& approve plan
• Review Cashflow
Status
• Resolve remaining
issues.
Demand
Supply
Demand
Planning
Supply &
Material
Planning
Pre-S&OP
Meeting
Executive
Meeting

11. Helps to smooth the
demand signal
Reduce break down in
production
Smooth Alignment of
Production and distribution
Decrease the cumulative
lead time 5-7%
Increase work in progress
15-20%

12. Question / Answer Session
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