This page contains a Flash digital edition of a book.
Supply Chain Mindmapping Mindmap S&OP

As a result of increasing volatility in demand many companies are busy implementing Sales & Operations Planning. They try to get beyond balan- cing forecasted demand and manufac- turing volumes and incorporate finan- cial budgets and business scenario. What should companies consider to get to a next level in S&OP? Supply chain consultancy Involvation and Supply Chain Movement created a compre- hensive mindmap to give a practical overview of all the aspects to consider for improving S&OP.

Mindmap creators:

Oliver Wight Involvation others

# Supply # Sales

# Finished Products # Components

Converging Diverging


Central Decentral

Industry Main driver

# Sales/Supply units # SKU’s

# Bill to customers Footprint

Management type

Develop Operational plan Demand/supply matching Profitability

Business orchestration

Long Term Mid Term Short Term

Internal Experts

Ambition Assessment

Update files Generate data Analysis of data Disseminate data

Baseline Events

Customer orders Customer forecast

Make To Order Make To Stock Hybrid

Internal External

Demand sensing Demand shaping Demand shifting

Utilization Flexibility

Skills/competencies Shift schedules Performance (OEE)

Other production facilities Contract manufacturing Bottleneck materials

Unconstrained Constrained

Identify issues Develop scenarios

Volume impacts Value impacts

GAP analysis vs. business plans KPI’s Accountability

MINDMAP MANUAL S&OP to the next level


The central questions are whether and how to bring S&OP within your organisation to the next level. An S&OP journey can be triggered by significant internal or external changes or by increased pressure and performance requirements. We believe in a growth model where the necessity of the next step is always

Summarize actions Disseminate actions

driven by the added value of the next maturity level.

S&OP as a mindset

Why is S&OP so popular at the moment? Is it a hype? S&OP is not new, but there are valid reasons for the increased interest for it. E.g., the financial crisis put more pressure on working capital. Many

Continuous improvement Decide on issues

Executive meeting High

Middle Low

Variants Risks

Complexity level

Matching demand and supply Set agenda for executive meeting Review pre-meeting decisions

Pre-meeting Scenarios Internal Capacity External Supply planning

Bussiness assumptions Push/Pull point

Components Forecasting Bussiness assumptions 4 PROCESS Demand planning S&OP maturity Current Complexity 1 COMPANY


Data gathering

companies found out though, that aligning activities for structurally freeing up capital proved much more difficult than expected. Is S&OP the solution? Partly, because it drives the required alignment within your company. A solid S&OP process is therefore an ongoing requirement. The right process, data and tools therefore are important, but the

overriding prerequisite is an S&OP mindset. Once S&OP is a common and shared mindset, you will have created fertile ground for sustainable and cross-functional alignment.

Biggest challenge in S&OP maturity Why are so many companies strug- gling with S&OP?

Looking at the different maturity pha-


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40