TABLE OF CONTENTS The question of value analysis of the S&OP process is one with many answers. There are so many positive things to say and describe about a well-managed S&OP process and the importance of it. This chapter is dedicated to the possibilities. There are probably others. These benefits are best divided into four categories (see also Figure 2.1): top-management efficiency, planning discipline, keeping the business objectives on track, and payback on investment. Details of each follow.
In today s environment top managers in most businesses are pulled in several directions at once. The days we enjoyed in the 1970s when we frequently could play golf on Thursday afternoons, like my friend Tom Craver and I did, are now extremely rare in most businesses, with today s competitive pressures. Instead the norm is long hours and time spent with all aspects of the business, internal and external. Without the efficiencies of the S&OP process, either less of the business gets reviewed regularly or more of the day-to-day execution gets put on autopilot with little follow-up. This setup may sound desirable, but it depends heavily on a high skill level requirement within the ranks of middle management. It also requires solid interpretation and knowledge of the corporate objectives and the tools available for implementation. Most agree that it is much better to have a regular direct link between the top steering committee of management and the rest of the business. The S&OP process creates the top-management adjustment knobs for the executive committee to...
