A group of 6 students, in the 4rth grade in the Faculty of English commerce, prepared a a Presentation about S&OP as it was tasked by Professor Ibrahim ElShaer.
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2. Outline
• Common Problems of Companies.
• Need for S&OP.
• S&OP PROCESS
• Benefits of S&OP
• Challenges of S&OP
• Tips
3. Common Problems of Companies:
• Absence of team work (finger pointing).
• Supply Interruption.
• Lack of resources.
• Lack of confidence in planning systems.
4. Conflicts among the departments:
• Sales want to increase sales. (plenty of inventory)
• Operations want a long run of machines with few
changeovers.
• Finance want high profits and low
working capital.
5. Need for S&OP:
• Bring different views together.
• Meeting customer demands, profitability and the
company’s strategic agenda.
• Manage the supply chain, optimize resources, and
maximize profits.
6. S&OP IS:
A set of decision-making processes to balance
demand and supply, to integrate financial
planning and prerational planning and
to link high-level strategic
plans to day-to-day operations.
13. Benefits of S&OP:
• Better data and collaboration between departments.
• Companies can better optimize resources.
• Improved inventory and backlog management.
14. • S&OP can fuel a resurgence by finding ways to adjust to
changing internal or external conditions.
• More actionable data can lead to better Key Performance
Indicators (KPIs) for each department.
• As data flows more seamlessly between departments, it
is more timely and accurate.
15. Challenges of S&OP:
• Achieving process compliance.
• Adapting the process to the organization.
• Data accuracy and integrity.
• IT functionally enabling the process.
16. • Establishing S&OP meetings as the business
priority.
• Acceptance of the roles and responsibilities.
• Identifying S&OP expert to lead the
implementation.
17. Tips For Implementing S&OP:
Suresh Dalai is a retail operations
professional based in Singapore, 20 years
experience working on S&OP.
He advices focusing on:
• People.
• Process.
• Practice.
18. People:
• Ensure that the implementation is heavily cross-
functional.
• Ensure that people are engaged in the process.
• Develop an environment for open discussions.
19. Process:
• Clearly define the end-to-end process steps.
• Develop a calendar so that activities are done timely.
20. Practice:
• Well-executed S&OP process does not happen
overnight, while instilling a culture of continuous
improvement is key.