Sales, Marketing and Finance Input

  • 14 September 2016
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Monthly/quarterly IBP cycle

An integrated and optimised cross functional meeting cadence to refine inputs to Operations from Sales, Marketing and Finance activates a robust IBP.

Sales and Operations planning should achieve four objectives:

  1. Involvement of the senior management team from the functional areas in the regular cadence drives adoption of the plan for the next cycle
  2. Agreement on the compromises necessary to balance demand and production
  3. Alignment to (or necessary adjustments to) the business plan resulting from the current cycle
  4. Confirmation of “out of tolerance” spikes or troughs in demand or production, and action to address them if necessary

The four key principles for Integrated Business Planning are clearly visible in sales and operations planning (S&OP):

  • Both ends of the supply chain (customer demand and supply availability) are joined up through a robust, cross-functional forecast management model
  • Discipline throughout the business (correct cadence, appropriate tools, sound metrics and reporting) is supported by a similar approach from suppliers
  • Critically, IBP is C-suite sponsored in both client and supplier companies
  • A lean approach to deployment is undertaken – pilot, test, deploy, refine

 

Sales and Operations planning confirms the business plan for the next cycle, based on high quality inputs and iterative problem solving

 

A highly iterative outcome-focused culture in the senior leadership team delivers:

  • Effective use of resources (e.g. production, planning and logistics)
  • Rapid and collaborative problem solving to address any inconsistencies in inputs or outcomes
  • Alignment of all parties to the business plan
  • Action-orientation and ownership of the forecast throughout the business

Key drivers of a successful Sales and Operations planning cycle include:

  • Involvement of the right teams and the right mix and levels 
  • Focus on outcomes rather than problems
  • A culture of collaboration supported by a rewards and recognition programme aligned to outcomes
  • An end to end view by all participants of the IBP process that includes feedback loops at the appropriate times to address input variation

To find out how WBS Group can assist your supply and demand management in your organisation simply contact us for an initial FREE no obligation consultation.

 

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