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One key requirement of the S&OP/IBP process is that facts and assumptions need to be captured and documented along with changes in the numbers. During the Management Business Review as part of S&OP/IBP, the executive leadership team needs to understand the foundation for the numbers, not just review the numbers without explanation. Thus, the S&OP/IBP tool set should have the ability to document and display both quantitative and qualitative information. That is what the Oliver Wight Enterprise Sales and Operations Planning Tool is designed to do.
A properly-functioning S&OP/IBP process has both operational numbers and financial numbers that are driven by the operational numbers. When an effective S&OP/IBP process is in place, the Finance organization can get out of the second-guessing game they are often forced into because of lack of credible information from non-integrated management processes. When there is credibility in the demand, supply, price, and cost data, the Finance organization is free to do value-added financial analysis versus forecasting.
The Oliver Wight Enterprise Sales and Operations Planning tool provides financial views of the business that are derived from the operational plans. It also has scenario modeling capability. Projections of balance sheets, income statements, and cash flow statements can be output from the Enterprise Sales and Operations Planning Tool.
Companies that do S&OP/IBP well, operate with complete and credible information and can turn the annual planning process into a significant non-event. Because the best view of the business is seen across the full planning horizon every month, the often wasteful and ineffective annual planning process can be greatly simplified. Many Oliver Wight Enterprise Sales and Operations Planning Tool clients use the output of the tool as a basis for their annual planning process.
Oliver Wight will provide a demo of the Enterprise Sales and Operations Planning Tool upon request.
The Enterprise Sales & Operations Planning Tool is offered as a compliment to Oliver Wight's consulting services. Discover how your company can integrate all areas of the business with financials to present a more comprehensive view for analysis, gap identification, and reconciliation. For a personalized quote, please call (800) 258-3862.
Do you have a license of the ESOP Tool and need support? Click here for the ESOPT Support Website.
Sales and Operations Planning (S&OP) is widely considered a best practice management methodology for manufacturing, engineering, and distribution organizations. It is a monthly management process that brings into one integrated plan all of a business’s separate operational plans and ensures that the plans are synchronized; particularly demand, supply, inventory, new product, and finance. If done well, the process provides a formal method for senior management to respond to change, both positive and negative, over a 24- to 60-month planning horizon. A mature process enables management visibility of the status of strategic initiatives and identification of gaps between current plans and strategic goals which leads to action plans to close the gaps.