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Introduction and challenges

Companies must have decision-making committees able to find a consensus between sales objectives, marketing objectives, operations and finance. The S&OP process allows the alignment of the sales plan with the company’s manufacturing capacities in the medium term, whilst respecting service and financial objectives.

All departments (trade, development, operations, finance) must be included in the process as well as general management, who need to actively support the process and is the decision-maker. S&OP must be constantly oriented towards decision-making with explicit arbitration rules that reflect the company’s strategy, focusing on exceptions and gaps, and through shared performance measurement.

The financialisation of S&OP (sometimes called IBP), and the possibilities of being able to evaluate several scenarios reinforce this collaborative approach, allowing a common vision on risks and opportunities (new product introduction, supplier crisis, opportunity on a specific market etc.)

The use of tools adapted to the problem (simulation capacity and simplicity in particular) strengthens decision-making and supports the learning logic and continuous improvement of S&OP.

How we can help 

In the implementation (or improvement) of S&OP processes, Argon & Co supports its clients in:

  • The definition of governance (the roles and responsibility of each participant involved in the processes, in the various authorities and in decision-making) in line with the company’s supply chain planning model
  • Coaching of the different departments and general management to strengthen decision-making 
  • Process redesign in line with best practice, adapted to the specificities of the company, structuring the deliverables of the preparation and meeting phases and defining the most appropriate levels of aggregation and horizons
  • The implementation of alerts, performance indicators and dashboards
  • The choice and implementation of S&OP support tools (APS, dedicated optimisation tools, collaborative tools etc.): writing specifications, managing RFPs, assistance with implementation, project management and securing risks
  • The management of the associated transformation plan (cultural evolution, behaviours, skills, training, communication)