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8 Measures for Sales and Operations Planning in Turbulent Times, Part 7
August 11, 2020 | Fane Friberg, CEPHASEstimated reading time: 1 minute
In this series, CEPHAS principal Fane Friberg highlights the interdependent elements of an effective S&OP process for leaders of supply chain management. While some companies tend to fall back on the status quo, Friberg highlights why it’s critical to actually increase the frequency of the S&OP rather than decrease the operations. He has reviewed the importance of staying committed, strategic imperatives, participation, technology, and rough-cut capacity planning. Today, he discusses financials.
Focus #7 Financials
At this stage of the S&OP process, you will need to aggregate the resulting orders funnel, RCCA, and supplier commitment into a resulting bottoms-up financial plan. How does the resulting plan compare to your annual budget? Do you “get well” at some point during the year based on your agreed-upon inputs and outputs? Or are their other variable or step-variable elements that need to be modified to minimize the impact on your strategic imperatives?
Communicate clearly and often your purpose walking out of the S&OP. Define those critical actions and measures of success that must be taken and monitored daily to preserve the long-term success of the enterprise. Build a resilient supply chain that is agile and responsive to the strategy supporting the transformation necessary to remain viable after the turbulent times.
Fane Friberg is principal of CEPHAS.
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