A not so funny story...
Frederic GOMER
Drive P&L Result in 90 Days by Fixing Supply Chain & Manufacturing Bottlenecks | Highly Engineered Industries: CTO, ETO | Global Presence
I shared a video on LinkedIn earlier this week that I found hilarious, and I'm sure you'll get the point.
The takeaway is that getting top management buy-in is key to achieving anything. S&OP is a cross-functional effort that's essentially a business transformation. Without top management on board, you'll struggle to get the results you want. It's not just about securing a budget; it's about getting the green light from the top to drive real change.
?To secure their buy-in:
??Build a strong business case.
?Show the impact on the top line and bottom line.
?Stop focusing on Supply Chain; talk business.
?Understand what's in it for top management (CFO, CEO, COO…).
?Make business sense of the S&OP.
?If you don't get top management buy-in,
?Don't even go there ?Don't start.
?Stay tuned!
The #1 Secret of the Week:
Are you considering implementing Sales and Operations Planning (S&OP) in your organization? Before you begin, it's crucial to answer these 5 critical questions to ensure a successful implementation.
1. What's in it for each stakeholder?
Understand the expectations and needs of each stakeholder, including the head of the business, CFO, and VP of sales. Ensure that each need is properly addressed to guarantee a smooth implementation process.
2. What is the business case?
Quantify the business benefits of S&OP and establish a clear timeline for when results will be visible in the P&L. Without a solid business case, your S&OP initiative may falter at the first obstacle.
3. How engaged is top management?
Top management must be strongly committed to the S&OP initiative, beyond just providing a budget. Without their engagement, the project may not succeed.
4. How is S&OP perceived by top management?
Ensure that top management views S&OP as a business transformation initiative, rather than just a Supply Chain or IT project. If it's not seen as a strategic initiative, you may face challenges.
5. What is the level of priority?
S&OP must be among the top 3 management priorities, and this must be clearly communicated to all stakeholders. If it's not a priority, it's unlikely you'll succeed.
By answering these 5 questions, you'll be better equipped to implement a successful S&OP initiative that drives business benefits and meets the needs of all stakeholders. Don't let your S&OP initiative fail – ask these questions first!
?The survey of the week:
What do you think?
The heated debate about the survey of the week! I must admit, I can be a bit cheeky at times. If I had to choose just one answer, I'd say "others."
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Why, you ask?
Well, the success of the S&OP process is all about its impact on business performance. I'd want to see metrics that really matter, like revenue growth, EBITDA, or working capital turnover
(yes, inventory is part of it, I know!).
Of course, there are other important success measures, like:
?? How many decisions are made (and how quickly!)
? How well the budget is achieved
? Fill rates and forecast accuracy (at the supply chain level, naturally)
? And so on...
But let's not forget, S&OP is a business process, not just a supply chain one. We need to look at the bigger picture, not just individual metrics in isolation. The real success of S&OP lies in its impact on the business as a whole.
Our next events:
I am very excited to share our new S&OP roadshow: Singapore, Dubai, Riyadh, ?Paris, Zurich, Houston etc…check out the dates and locations. Book your complimentary seats here !
Each session is limited to 12 participants.
(Watch the announcement)
I'm looking forward to interacting with you in person or virtually at our next events. Come learn, network, share your experiences, gain new insights, and have fun! click here.
Looking to improve your S&OP? Get a quick, free assessment:
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Conclusion:
To wrap up, if you've just started your Sales and Operations Planning (S&OP) journey, remember, top management buy-in isn't just a checkbox—it's your golden ticket to success. By asking the five critical questions, you're setting up your organization for a real transformation. So, aim higher than just budgets—secure commitment, build a business case that makes “business” sense, and make sure S&OP is seen as the strategic lever it truly is.
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