Sales & Operations Planning

S&OP is a key tactical tradeoff process that enables companies to define operational capacity in line with demand forecast.

Companies must have decision-making processes and bodies in place capable of ensuring compatibility between the objectives of the Sales/Marketing, Operations, and Financial functions. This is the purpose of the S&OP process, which reconciles the company’s sales plans and manufacturing capacities in the medium term, whilst meeting service objectives and financial targets.

At Argon Consulting, we believe that the best S&OP practices are based on 10 key principles:

  • A formal process that includes all parties involved
  • A clear governance model with active support from executive management
  • Explicit trade-off rules that reflect the company’s strategy
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  • A focus on exceptions and variations
  • Collective performance measurement
  • Specific risk management
  • The joint adoption of “push” and “pull” approaches
  • The use of tools specifically tailored to the issues in question (simulation and lean capabilities in particular)
  • Extension of the collaborative approach upstream and downstream
  • A continuous drive for improvement

How can Argon Consulting help you?

  • Identifying challenges related to existing deficiencies and estimating the cost of overhauling the organizational structures and tools in place (business case)
  • Defining governance (roles and responsibilities of those involved in facilitating the relevant processes, the various decision-making bodies, and decision-making processes) consistent with the company’s Supply Chain model
  • Overhauling processes in line with best practices and tailored to the specific features of the company, defining deliverables for the preparation and meeting phases, as well as the most suitable aggregation levels and timeframes
  • Implementing alerts, KPIs, and scorecards
  • Selecting and implementing tools to support the S&OP (dedicated optimization tools, collaborative tools, etc.): specifications drafting, management of calls for tender, implementation assistance, project management and risk management, etc
  • Managing the relevant transformation plan (changes in culture, behaviors and skills, training, communication, etc.)

Case Studies

Development of a program to reduce stocks and cut logistics costs
Adapt the purchasing and supply chain organization to support strong international growth
Deployment of Supply Chain processes, teams and information system
From the supply chain vision to the deployment of processes and the implementation of a supply chain planning information system
Optimization of a leading petrochemical company’s MRO supply chain
Boost performance by cutting stocks and improving the service rate by overhauling the processes and deploying supply chain planning tools
How we helped a leading European consumer goods supplier to build and deploy a flow management and supply chain planning target vision
Development of a stock reduction program
Transformation projects in the aeronautics sector: critical for supporting sector growth
Drivers for reducing inventory and increasing flexibility in the pharmaceutical industry