Time to win hearts and minds

Julian Mosquera comments in article on S&OP featured in Logistics Manager.

An effective S&OP process can have huge benefits for a business.  But putting the process in place means involving senior management right across the business and facing up to some harsh realities. 

Julian Mosquera says that structure is critical, it is important to establish the correct sequence and level of detail the business needs to work at to leverage the benefits delivered from good planning and S&OP.

"Process design is also important and this must be sufficiently detailed to enable the two key roles of demand and supply managers to orchestrate the process and all of the players and stakeholders.

"To effectively transform an S&OP process, organisation is also required as restructuring of organisational roles and reporting lines will need to take place to ensure S&OP has a prominent and influential positioning to be able to effect change and direct decision making.

"Finally, competencies are essential, as it is all well and good designing a process, but if the staff in key roles don't understand the technical aspects of what they are doing or have the planning acumen and social skills to manage the process, then it will never be as successful as it promised to be.  For this reason the S&OP team is usually a relatively tight group and often centralised (with regional representation where appropriate)".