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Newton.Vaureal Consulting - Logistics and Supply Chain Management - Paris
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S&OP

Sales & Operations Planning (S&OP) and Integrated Business Planning (IBP): a key management process

The most successful companies are endowed with a transversal decision-making process that allows them to regularly realign their sales with the company’s internal resources (stock and production capacity): S&OP (Sales & Operations Planning).

Known as IBP (Integrated Business Planning) or SIOP (Sales, Inventory and Operation Planning) (or in French, “le PIC [Plan Industriel et Commercial]”), this is generally a monthly procedure, which allows for a permanent adjustment between planned and actual reality, both commercial (difference between sales and forecasts) and industrial (notably production capacity and stock).

The characteristics of an effective S&OP

Meticulous arbitration-meeting preparation, including simulation of different possible outcomes.

  • The monitoring of simple- and shared-performance indicators, guaranteeing the clarity needed to make relevant decisions and oversee their application.
  • A focus on current exceptions and topics.
  • An unbiased examination of procedures – facilitating the establishment of consensus.
  • A short-time horizon in the medium term becoming less frequent in the long term.
  • The involvement of decision makers, supported by senior management.
  • A broad communication of decisions taken and shared follow-up of their application.
  • When is Newton.Vaureal called in?

    The efficacy of a truly transversal S&OP process relies on operational performance. S&OP isn’t always the main reason for our intervention in a company – but it often proffers a solution to many malfunctions.

    1. How do you organize this process at the core of a company’s decision making?
    2. How do you optimize it and make it a strategic company tool?
    3. How do you support its participants in its implementation?

    S&OP is the key to operational efficiency in Industrial companies; it is also increasing in importance in the Distribution and service sectors.