The document discusses continuous and collaborative sales and operations planning (S&OP). It notes that S&OP aims to balance competing goals across finance, supply chain, operations, sales and marketing to create a feasible plan. Effective S&OP is both collaborative, involving all functions, and continuous rather than following a rigid calendar. It also aims to achieve integrated business planning across the organization by providing visibility and removing "information black holes".

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Trevor Miles
director, thought leadership
tmiles@kinaxis.com
Continuous and Collaborative S&OP

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• Technology choice means
– Different skills/people
– Different processes
– Different results

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S&OP – Balancing Competing Goals
13!
Goal: Make the financial budget. Top-down focus.
Wants: Control and predictability of operations
Forecast: The budget/annual operating plan
FinanceSupply
Chain
OperationsSales and
Marketing
Goal: A feasible plan. Bottom-up focus
Wants: Minimize risk and disruption
Forecast: The demand plan
Goal: Maximize
revenue and market
share
Wants: Guaranteed
product availability
Forecast: Sales plan
Goal: Minimize supply
chain costs, often
inventory
Wants: Minimum
demand uncertainty
Forecast: Supply plan
Demand
Side
Supply
Side

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S&OP – Balancing Competing Goals
14!
Goal: Make the financial budget. Top-down focus.
Wants: Control and predictability of operations
Forecast: The budget/annual operating plan
FinanceSupply
Chain
OperationsSales and
Marketing
Goal: A feasible plan. Bottom-up focus
Wants: Minimize risk and disruption
Forecast: The demand plan
Goal: Maximize
revenue and market
share
Wants: Guaranteed
product availability
Forecast: Sales plan
Goal: Minimize supply
chain costs, often
inventory
Wants: Minimum
demand uncertainty
Forecast: Supply plan
Demand
Side
Supply
Side

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S&OP in the Overall Planning Process
DegreesofFreedom
Strategy
Business
Planning S&OP
Tactical
Planning Execution
Scenario Planning
Financial
Capacity
Sourcing
Inventory
Product
Demand

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S&OP in the Overall Planning Process
DegreesofFreedom
Strategy
Business
Planning S&OP
Tactical
Planning Execution
Scenario Planning
Financial
Capacity
Sourcing
Inventory
Product
Demand
Information
“black
holes”
Lack of
visibility

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Integrated business planning the goal
DegreesofFreedom
Strategy
Integrated Business Planning
Execution
Finance
Capacity
Sourcing
Inventory
Product
Demand
Scenario Planning
Business
Planning S&OP
Tactical
Planning

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“If I had asked people what they wanted,
they would have said faster horses”"
- Henry Ford

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Continuous and Collaborative S&OP
AND, not OR
Collaborative, not linear
Event-driven, not calendar-driven
Effective, and efficient

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Thank you! Questions?

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