What is One-Plan S&OP?2019-03-26T12:57:56-04:00

What is One-Plan S&OP?

One-Plan S&OP is a demand-driven Sales and Operations Planning (S&OP) process focused on creating a centralized, dynamic, integrated business management process that promotes synergy across all key functions of the organization to provide a better plan.

Traditional S&OP is Static. Respond to Market Changes in Real-Time

In a perfect world, after going through your painstaking Sales and Operations Planning (S&OP) Process, when you declare that your S&OP is “frozen” for the month, your market conditions would remain the same throughout the month. Unfortunately, that’s far from reality. Your market is constantly changing. To continuously delight customers, you need to make adjustments to meet those changing demands.

Create a Synergized S&OP Process. 

A One-Plan S&OP creates a continuous improvement process and synergy across the organization throughout the Sales and Operations Planning process. This is made possible through the availability of a centralized, dynamic and integrated database.

S&OP One Plan
Centralized Database

Centralized, Configurable Database

Your plan is only as good as your data and how much value you extract from that data. To create an improved S&OP process that is data-driven, you need a centralized, flexible database that integrates with all existing systems.

A centralized database allows for:

  • The elimination of manual data entry
  • The reduction of errors
  • Improvement in collaboration across the organization

Real-Time Demand Planning

Create a better demand plan by taking into account real-time market signals, and forecasts based on historical data, and inputs from key stakeholders including marketing, sales, and research and development teams.

A Real-Time Demand Planning Process Creates:

  • A streamlined way to improve and monitor forecast accuracy
  • Improved success of commercializing new products
  • A better alignment between the demand and financial forecasts
Real Time Demand Planning

Continuous Capacity Planning

Determine capacity constraints and plan assets for specific time horizons with the flexibility of continuously improving plans.

A Real-Time Demand Planning Process Creates:

  • A streamlined way to improve and monitor forecast accuracy
  • Improved success of commercializing new products
  • A better alignment between the demand and financial forecasts

Demand & Supply Synergy

Identify imbalances between demand, supply, procurement, and financial plans and make recommendations and realignments before executive S&OP meeting.

A Demand & Supply Synergy Pre S&OP Executive Meeting Aids With:

  • Identifying gaps in the plan and fix it ahead of time
  • Get finalized inputs from key stakeholders within the organization
  • Determining key performance indicators

On-the-Fly Executive S&OP

With easy access to live reports and dashboards through your centralized database for S&OP, you can quickly analyze multiple what-if scenarios and make better-informed decisions.

On-the-Fly Executive S&OP Creates:

  • Shorter meeting times due to the ability to quickly answer questions using live data
  • Better visibility into full S&OP plan with the ability to easily drill down
  • One-plan easily accessible and fueled by real-time data

Dynamic S&OP Monitoring

To create a continuous improvement process, you need to track and measure key metrics and identify early warning indicators. To do this, there is the need for dynamic S&OP monitoring to track daily fluctuations within the supply chain process.

Dynamic S&OP Monitoring Enables:

  • Allows for proactive risk mitigation to reduce disruptions to the supply chain process
  • Provides early warnings, creating the ability to modify plans as needed
  • Creates a continuous monitoring process and updates KPIs in real-time instead of a predetermined intervals

What’s the Difference Between One-Plan S&OP and “One-Number” Planning?

The concept of “one-number” planning or forecasting, is a popular concept traced back to the 90s. It basically involves the concept of creating a plan driven by a single operating number. This notion led to many organizations creating a plan that was sometimes based on a “forced” one-number. The concept of One-Plan S&OP recognizes the fact that there are likely to be gaps in numbers between the factions of an organization as they work together to create a consensus plan. A consensus plan in a One-Plan S&OP process makes room for risk buffers, outlines number gaps but not necessarily “force” organizations to create a single number plan. Additionally, the plan is also demand-driven and leaves room for re-planning when market conditions change.

Benefits of One-Plan S&OP

  • Create a more agile business that can quickly respond to changes

  • Increase cash flow and reduce lead times

  • Improve commercialization of new products and increase margins

  • Reduce inventory costs by maintaining optimal inventory levels

  • Increase forecast accuracy

  • Improve customer satisfaction

  • Create a better communicative process within an organization

  • Reduce logistics costs

Featured Resource:

Improving Your Supply Chain — Where do You Start?

Get Started Today! Create a Synergized S&OP Process with the Arkieva One-Plan S&OP System

Arkieva provides Integrated Supply Chain Planning solutions for creating a One-Plan S&OP system. The Arkieva One-Plan S&OP system helps manufacturers improve business performance with better planning.

Empower your Sales and Operations Planning team with integrated solutions for:

  • Product segmentation and analysis
  • Demand
  • Inventory
  • Supply
  • Executive S&OP management and execution