The document discusses cross functional alignment and effective communication in the S&OP flow. It outlines how demand, supply, finance, and balancing functions interact on a daily, weekly, and monthly basis. Key information shared includes forecasts, plans, opportunities, risks, and assumptions. The goal is to create business rules between demand and supply, with a forecast time fence of 12-24-36 months. Functional leaders participate in monthly reviews to monitor metrics, results, and variances from business plans.

1. 7
Cross Functional Alignment / Effective
Communication – The S&OP Flow
Demand Finance GM
Generates Controls Monthly
Proformas, S&OP
Cost, Risk /
Ops Monthly; + Results
As Needed In + Metrics Review
Interim + Var to Bus Pl
+ Future Frcst
Utilize Demand
Supply Outputs as Basis
+ Assumptions
For Forecasts, + Bulk of Meeting:
Daily Annual Plans, Gaps, Opps in
Strategic Plans,
Weekly Add Risks / Opps / Future Frcst
Monthly Other Lifts /
Discount Factors
Balancing As Needed
+ Create Business Rules (Between Demand/Supply)
+ Forecast Time Fence: Rolling 12-24-36 Months
+ Functional Leads & Leader Participate in Monthly S&OP Review
Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (July 7, 2011)

2. 8
Connection – Integration, Performance
Management (Metrics), Results
INTEGRATION PERFORMANCE METRICS
Leadership Revenue, Cost Targets
(Strategic Direction) Forecast Accuracy,
Working Capital Targets,
Inventory Targets
New Product Launch Success
Demand Feeds Cycle Time / Quality - Processes
Supply; Balancing / Service Level Targets
Capacitization
(Ops Execution, Future Forecast)
Finance DESIRED RESULTS
($ Scorekeeper, Forward Looking Positive P&L Outcomes
Economic Advisor) Positive Working Capital Outcomes
Productivity Improvements
Decision Making Improvements
Leadership Customer Service Levels
(S&OP Process Owner)
Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (July 7, 2011)

3. 10
Accountability Systems For Internal Stakeholders
• Metrics – Common
– 5 Basic Metrics:
• Forecast Accuracy (Demand Owner)
• Perfect Orders (Cust Serv, Supply)
• Revenue (Units & Mix)
• Profitability (Mix, Margins, Costs)
• Inventory (Demand Owner + Supply Owner)
– Simple Scorecard
– Improvement From a Baseline
• Active Involvement By All Functions –
– Accountability & Roles / Responsibilities
• Daily
• Weekly
• Monthly (Decisions Made + Follow-Up Assigned)
• Transparency Through Dynamic
Communication Flow
Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (July 7, 2011)