Many organizations go without an S&OP process when it’s necessary, and even more fail to maximize its benefits.
Watch the video to understand why S&OP isn’t providing the value it should.
If your S&OP process isn’t giving you the expected results, there’s a good chance the problem lies in how meetings are structured. Too often, businesses hold meetings that drag on with no real decisions being made, just endless discussions. This wastes time and defeats the purpose of S&OP. The solution? You need to focus on decision-making rather than discussions.
Shifting from Discussions to Decisions
A major issue with many S&OP processes is the focus on discussions instead of decisions. When meetings last for hours without clear outcomes, it’s a sign that something’s off. The key to a successful S&OP process is ensuring meetings are built for decision-making. This starts with preparation. Everyone involved needs to come to the table with the data, analysis, and recommendations to move the discussion forward quickly. When everyone is prepared, the meeting becomes a platform for making decisions, not just talking in circles.
S&OP meetings should be quick, focused, and to the point. Senior leaders need to be able to grasp the situation, review the data, and make decisions without wasting time. With the right preparation, meetings should be about action, not debate.
The Role of Senior Leadership
S&OP processes are meant for senior leaders—MDs, CEOs, and other executives who make strategic decisions. To make this work, the information provided to them must be clear, straightforward, and actionable. Executives shouldn’t be buried in details; they need to see the bigger picture and understand the reasoning behind the recommendations.
A well-structured S&OP process provides executives with enough clarity to make decisions quickly. The data should align with the company’s strategy and be financially backed, ensuring leadership can endorse or adjust the recommendations.
The Power of Decision-Based Meetings
When meetings are focused on decision-making, they improve alignment, accelerate decision-making, and deliver better results. With a focus on clear decisions, your S&OP process can drive performance, streamline operations, and keep your business competitive.
Related articles on this topic have appeared throughout our website, check them out:
-
Give Your Operations A Productivity Boost – Increase Your Bottom Line Profit
- Sales & Operations Planning (S&OP) – The Greatest Success Factor
- S&OP 12 Key Success Factors
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated February 08, 2023, under the title “S&OP: Why It Fails“.
