APICS defines Sales and Operations Planning (S&OP) as the “function of setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned levels of sales (sales plan and/or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times etc, as expressed in the overall business plan”.
More generally, S&OP has been seen as a means to balance demand and supply, integrate financial and operational plans, and align higher level strategies with day to day operations. We use the InetSoft BI solution to aid the S&OP process.
Improve S&OP with Improved Information
Firstly, using InetSoft BI improves visibility across the organisation, reducing informational silos and integrating departments, in turn driving a swifter, more informed decision making process re S&OP. In assisting to define appropriate metrics to measure, assess and control business performance at an operational, tactical, and strategic level, the InetSoft BI solution helps to understand the organisation in a more meaningful way. InetSoft BI enables access to a diverse range of previously untapped information sources on the fly, both internally and externally. The result is an increase of available data and improved transparency. This can all feed into improving the S&OP process. Typically, it is the use of metrics to benchmark expectations and measure historic or planned performance which guides any S&OP sessions. Furthermore, as the InetSoft BI tool can assist in linking data from different areas within and external to the business, it is cross functional and engages all relevant S&OP parties. The outcome? Better quality information at every stage, incorporation of business wide constraints and drivers, reduced uncertainty, and the ability to more confidently shape future direction in line with strategic objectives. Improved S&OP.
Improve S&OP with Real-Time Information
Secondly, with the InetSoft BI solution you can focus on putting the right level of detail in the hands of the right people, at the right time. Therefore, individuals need only be concerned with information that is relevant to them and which they are expected to act upon, aiding clarity, rather than being overwhelmed with a mass of unnecessary detail. Thereby improving the S&OP process. Live information is easily accessed and manipulated adhoc, without the need to wait for overnight routines or for a lag in data availability, impacting time to response. From an S&OP perspective, a BI tool can reduce the production time of any requisite reports previously based upon complex data structures and often out of date by the time any meeting is held. The reason for this obsolescence? A need to take a snapshot of data to serve as a point of reference for metric purposes as much as a week out from an S&OP session, in order to allow sufficient time for report extraction from less user-friendly sources. In contrast, the ease with which newer BI tools can extract information and present it at a level required by the recipient can help to shorten this timeframe, going so far as to support real time access if deemed appropriate. This in turn facilitates a monthly planning cycle based around a need for relevant and timely data, rather than one constrained by a requirement to build in a buffer for information gathering. This benefits any S&OP session in ensuring that only the most up-to-date view is presented when key decisions are being made.
Improve S&OP with Visual Impact
Thirdly, more modern BI tools aren’t limited by their capability to present any plan used for S&OP purposes. The level of detail in which information is initially presented should be relevant to the audience concerned, however to aid decision making, they possess the functionality to drill up or down, slice and dice, and mashup information to aid clarity and allow exploration of alternative options (prior to approval of any plan). The facility to present data in a visual format is particularly impactful when set against pages of heavy detail.
Improve S&OP with What-If Analysis
Finally, the flexibility offered by newer generation BI tools such as InetSoft support ‘what if analysis’. Therefore, at every level including before and during each S&OP session, individuals can explore numerous alternative options and solutions, reviewing their potential impact before making their suggestion as to the ‘best’ plan. That is, the one which most closely marries all areas together, and supports achievement of overall business objectives. The InetSoft BI solutions cuts down the time and effort required to produce S&OP reports, it removes the need to lock off a version of the plan for analysis several days ahead of the S&OP meeting, which means no more meetings with out of date reports. The what-ifs can be done there and then during the S&OP session and everyone can see and understand the impact, and make the decisions on the spot. InetSoft BI can drive S&OP and improve the overall process.
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