Consulting · S&OP
S&OP consulting: one plan for sales, operations and finance
We introduce and develop sales & operations planning, in mid-sized companies as well as DAX corporations: with clear roles, a fixed monthly cadence and decisions made where they belong.
Sales & operations planning
What it is about
Sales & operations planning (S&OP) is a monthly, cross-functional planning process. Sales, operations, procurement and finance align their plans and then work from one shared set of numbers. Each cycle ends with an agreed plan on which executive management decides.
The planning horizon typically reaches 18 to 24 months ahead, at an aggregated level such as product families, plants or regions. Integrated business planning (IBP) extends S&OP with financial, portfolio and strategic planning. Short-term execution at item level, week by week, is called sales & operations execution (S&OE).
Our aim: bottlenecks, conflicting targets and opportunities become visible before they get expensive. And decisions are made in the process rather than on the side.
Challenges
Typical starting points
Several versions of the truth
Sales, operations and procurement plan with their own numbers. Alignment happens in one-to-one talks, not in a process.
Planning in Excel
Many files, many versions and a strong dependency on individuals. Whoever knows the current state is often not in the room.
High stock and shortages at once
High inventory ties up capital, yet the right parts are still missing. Delivery performance stays below target.
Bottlenecks surface late
Capacity and material constraints only show up in detailed scheduling, when there is hardly any room left to act.
Meetings without decisions
Executive management is not involved or does not receive scenarios that are ready for a decision.
Volumes and finance apart
Sales and production plans do not match the budget. Deviations are only explained at month-end closing.
Monthly cadence
The S&OP cycle
- 01
Product and portfolio review
New products, phase-outs and range decisions are fed into the plan.
- 02
Demand review
Statistical forecast, sales knowledge and market assumptions become one agreed demand plan (consensus demand).
- 03
Supply review
Capacities, materials and suppliers are checked against demand. Bottlenecks and alternatives are assessed.
- 04
Integrated reconciliation
Volume and financial views are brought together. Open conflicts are prepared as scenarios with their impact.
- 05
Management business review
Executive management decides on scenarios, priorities and actions. From then on the plan applies to every function.
Project
How we work
- 01
Assessment
Interviews, process mapping and data analysis: where does planning stand today, and where are the biggest levers? Supported by a standardised maturity check if required.
- 02
Target picture and KPIs
We define what S&OP should achieve in your company, at which level planning takes place and how success is measured.
- 03
Process design
Cadence, roles, decision rights, agendas and templates for every meeting of the cycle.
- 04
Pilot
Two to three cycles with selected product families. What does not work is adjusted before the broad rollout.
- 05
Rollout and tools
Rollout to all functions and connection to ERP and planning system, from a structured Excel solution to SAP IBP.
- 06
Enablement and improvement
We co-facilitate the first cycles, then hand over to your team and measure the impact against the agreed KPIs.
Impact
What can be measured
S&OP is successful when KPIs move, not when a meeting sits in the calendar. Typical measures:
- Forecast accuracy and bias at product family level
- On-time in-full (OTIF) and service level
- Days of supply, inventory turns and working capital
- Capacity utilisation and plan attainment
- Deviation between planned and actual revenue
Key figures
What mature integrated business planning achieves
Source: McKinsey & Company, 2022
FAQ
Frequently asked questions about S&OP
What is S&OP?
Sales & operations planning is a monthly, cross-functional process that combines sales, production and financial planning into one agreed plan. Executive management decides on this plan.
What is the difference between S&OP and integrated business planning?
Integrated business planning (IBP) is the evolution of S&OP. It involves finance, portfolio and strategy more closely and links volume with value planning. The boundary is fluid; what matters is that the process fits the company's goals.
How does S&OP differ from S&OE?
S&OP aligns the plan monthly at an aggregated level, usually 18 to 24 months ahead. Sales & operations execution (S&OE) implements it weekly at item level and reacts to short-term deviations.
Which companies benefit from S&OP?
Mid-sized companies as well as DAX corporations. In mid-sized companies a lean form counts: process, roles and decision rights matter more than the tool. In large groups the lever lies in integrating business units, regions and plants.
Which software do you need for S&OP?
A structured Excel solution is often enough to start. As complexity grows, planning systems such as SAP IBP help by combining scenarios, capacities and the financial view in one model.
How long does it take to introduce S&OP?
In our experience, a pilot with first results is realistic after three to six months. Full maturity develops over several years, because the process improves with every cycle.
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