How You Measure Success of Your S&OP Determines Success of Your Company?

How You Measure Success of Your S&OP Determines Success of Your Company?

AUTHOR

Vivek Sood

TIME TO READ

minutes 

UPDATED ON

May 12, 2021

Each silo measures the success of the S&OP process differently

Sales might believe it is successful if it manages to “hoodwink” the production to produce so much that there is no likelihood of stockouts. On the other hand, production might believe that making sales acknowledge the past forecast inaccuracies was its biggest success in the S&OP.

 The logistics department frequently believes it is successful if its representative walks out of the meeting without too much blame for missed deliveries or stock-outs. 

A single measure of success, linked to overall performance of the business – profit for example – is frequently given only superficial consideration by team members.

It is no wonder that under the circumstances, profits are frequently sub-optimised

Though each department manages to look good using its own measures. If this rings true in your organisation, there are ways to ensure a better outcome.


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Vivek Sood

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