S&Op Process Essay

829 WordsJan 15, 20144 Pages
After step by step going through the S&OP process, in order to approach S&OP in a collaborative manner, it is necessary to review it from different roles of participant and relationship in between. From the S&OP process map it is obvious that S&OP helps you get a good, accurate forecast number. The framework allows you to respond very quickly, which help to eliminate or minimizes disruptions and can yield sales volume and efficiency. Furthermore, here we use Caterpillar to examine the process map, the Caterpillar’s North American Commercial Division markets products from many manufactures and manages lots of dealer network. In order to coordinate its effort more effectively with factory and independent dealers, there would be monthly sales and Operations Planning meetings held to align team members on a commercial strategy and make sure each team agree with sales forecasting numbers and strategic decisions. Caterpillar enabled its dealers reduce the inventory and product costs while maintaining same product availability through adopting this process. S&OP becomes a decision-making tool to keep Caterpillar on track with its growth. 4.3. Participants Execution requires an engaged and involved leadership. The people and behaviors side requires constant vigilance and frequent contact with the executive sponsor and business unit owners. The S&OP process involves members from all functional groupings as below mentioned: Demand Planning There would be a demand plan and an “unconstrained” baseline forecast that are used as demand side inputs to the S&OP process. Quantitative forecasting is done by Sales and Marketing team based on weekly sales historical data, marketing efforts and new product introductions and price changes. • S&OP Manager S&OP manager has to facilitate the S&OP meetings on a weekly basis for demand review. For instance, those S&OP meeting agenda

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