✓ supply Chain method 10 questions about keeping the momentum going in s&oP Checklist for s&op process effectiveness Many companies invest significant energy and resources into establishing a robust S&oP framework, and often with success. They enjoy significant business benefits from balancing demand and supply while aligning various 45% 61% 45% 61% 30% 45% 22% 36% business functions to the organization’s strategic goals. 45% 45% However, the subsequent challenge often receives much less attention: how to maintain its effectiveness over time. As business environments evolve and organizational priorities shift, there is a risk that even the bestdesigned S&OP processes can deteriorate or become less aligned with business needs. 61% 3 %0 4 %5 2 %2 3 %6 61% Checklist for S&OP process effectiveness Victim to its own success When processes flow smoothly and targets are consistently met, there is a natural tendency to shift focus away from the very systems that facilitated the success. This is often seen in S&OP. When everything appears to be going well, the drive to maintain and improve the process often diminishes. Maintaining the vigour and relevance of S&OP requires continuous attention and adaptation. It is about fostering an environment of ongoing improvement and engagement. Ensuring engagement S&OP maturity development in the company should be based on a clear roadmap, to ensure the process evolves from a supply chain process to a business management process. By building a truly cross-functional business planning process, a company can ensure continued engagement of the commercial and financial, as well as operational, functions in the company. results 0-3 questions answered with No Your S&OP process has numerous continuous improvement and adaptation mechanisms in place. It is unlikely it will deteriorate, but there might still be things you can do to speed up the realization of a next maturity step. 4-6 questions answered with No Your S&OP process has some continuous improvement and adaptation mechanisms in place. It is very likely your S&OP process will stay effective, but there are still opportunities to extend the benefits it brings to your business. 7-10 questions answered with No Your S&OP process has virtually no continuous improvement and adaptation mechanisms in place and is at risk of deteriorating in maturity. Start by defining ownership of the process and establish clear roles and responsibilities for all stakeholders. S U P P LY C H A I N M O V E M E N T, N o . 5 3 , Q 2 2 0 2 4 Supply Chain Movement and Involvation created this practical and actionable checklist aimed at ensuring that your S&OP process remains a vital, effective process for making the right decisions and driving business success. Yes No 1. The company has an overall S&OP process owner in place. This process owner is able to work across the board to resolve issues hampering the S&OP process and continuously improve it. 2. The S&OP process is supported by an operational process owner who coordinates operational activities in close collaboration with the respective S&OP stakeholders. 3. All stakeholder roles and responsibilities have been assigned. Shortcomings (whatever the reason behind them) are flagged and addressed through the S&OP process owners. 4. The S&OP process is documented in a playbook or Way of Working document, it is maintained by its owner and is stored in a corporate standards system. 5. The S&OP process is part of the company’s Learning & Development programme, featuring a tiered skill matrix tailored to the varying roles and responsibilities of participants. 6. A separate Sales & Operations Execution (S&OE) process is in place to deal with short-term decision-making, ensuring the S&OP process focusses on the mid-term tactical horizon. 7. Every review within the S&OP process ends with a reflection round where stakeholders are encouraged to suggest improvements. The S&OP process owners make sure issues are addressed and/or feedback is given. 8. A periodic continuous improvement meeting is conducted, where adherence to the process is assessed. This includes the assessment of the actual maturity level against the company’s target. 9. The business objectives are translated into KPIs, which are integrated into each participant’s personal annual targets. Precise target settings clarify which KPIs are being optimized. When deviations occur, an action plan is readily implemented to realign them with established targets. 10. The company’s leadership sees the S&OP process as the means to achieve its strategic business objectives and actively participates in the executive S&OP meeting. 17
