It’s common for organizations to operate without a solid S&OP process when one is essential, and even when they have it, they’re not always reaping the full benefits.
Watch the video to discover why S&OP isn’t delivering as it should.
Why Your S&OP Process Might Not Be Working
If your S&OP process isn’t delivering the expected results, the issue could lie in how meetings are conducted. Too often, companies focus on holding numerous meetings, but they fail to create the right environment for decision-making. Instead of being efficient forums for action, these meetings end up being long discussions with no concrete outcomes.
Shifting from Discussion to Decision
The key to effective S&OP is shifting from discussion-based meetings to decision-based ones. This requires thorough preparation ahead of time. Participants need to come to the table with all the necessary data, insights, and recommendations already in hand. When everyone is well-prepared, meetings can focus on evaluating options and making decisions, rather than wasting time on unnecessary discussions.
I’ve encountered situations where S&OP meetings drag on for hours, with little progress made. That’s not a sign of a successful process. A well-structured S&OP meeting should be concise, focused, and action-oriented. The goal is to present clear, actionable insights that allow senior leadership to make informed decisions quickly.
Preparing for Success
S&OP is designed for the executive team—MDs, CEOs, and other senior leaders who need to make strategic decisions. To ensure success, these leaders need clear, straightforward information. The data should be presented in a way that’s easy to understand, and the recommended actions should be backed by thorough analysis and financial validation.
When meetings are structured for decision-making, they help drive business alignment, strategic direction, and operational efficiency. They lead to faster decision-making, which is essential for businesses to stay competitive.
In the end, S&OP meetings should always aim for clear decisions. When done right, they can be a powerful tool for improving overall business performance.
Related articles on this topic have appeared throughout our website, check them out:
- Sales and Operations Planning: The Interpersonal Element
- Give Your Operations A Productivity Boost – Increase Your Bottom Line Profit
- Sales & Operations Planning (S&OP) – The Greatest Success Factor
- S&OP 12 Key Success Factors
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated February 08, 2023, under the title “S&OP: Why It Fails“.
