Wheres My Cash? Sales & Ops Planning Overview + FREE Checklists

Wheres My Cash? Sales & Ops Planning Overview + FREE Checklists

Our COO, Kevin Mannering, did a great webinar in partnership with Branchfood on sales + ops planning which is included below.

We've also distilled the highlights in this post. Link to the FREE Checklists are at the bottom.

Key Definitions

S&OP = Sales & Operations Planning

A monthly business management process that integrates quantitative data from different parts of the business with the goal of driving better decisions around production planning, PO management, sales strategy, and product development. 

Bottoms-Up Sales Growth Plan

A velocity driven plan, by SKU by month by key account, that is developed by the sales team for their own benchmarking. Useful for generating an idea of what sales growth could be months or years in the future. Best updated, at least, bi-annually, if not quarterly.

Demand Forecast

A forecast of future demand based on past performance. This is your “baseline” forecast.

Demand Plan

A demand plan is based off of your demand forecast and any pertinent information from the sales & marketing and research & development teams, such as: new account resets, discontinuations, significant promotions or marketing events, changes to product launch timelines, etc.

Production Plan

A production plan lays out what finished goods you are producing and when, taking into consideration your co-packer’s requirements (or your own facility’s capacity constraints).

Material Requirements Plan (MRP)

An MRP takes into consideration what you need to order and when to meet production timelines.

The Process

S&OP process, illustrated


Success of your S&OP process depends upon proper preparation and communication from all stakeholders. 

The team can coordinate schedules and collaborate with each other to decide what is going to be layered on top of the demand forecast (lifts due to promos, marketing events, or seasonality) or if anything needs to be taken out (low velocity at store level requires a negative adjustment, discontinuation of some SKUs is upcoming, etc).

Together, you will have built the Demand Plan, which the Operations team can take downstream to production and procurement with the security of knowing all stakeholders feel good about the numbers.

How This Process Impacts Your Financials


financial impacts of S&OP process


What Info Should Your Sales, Marketing, and Analytics Have? 


What Info Should Your Product Development and Operations Have? 


Where it Goes Wrong

Spoilage Deductions

 

To avoid this in the future, ask yourself a few questions:

Produced Too Much Inventory


To avoid this in the future, ask yourself a few questions:

Produced Too Little Inventory


To avoid this in the future, ask yourself a few questions:

Negative Distributor Balance


Often times, a brand will get their invoice paid and the deductions for a promotion will come, after the fact, causing them to have a negative balance. 

To avoid this in the future, ask yourself a few questions:

Checklists To Help

We've put together some checklists to make sure you're asking all right questions throughout this process. Get them below!

Click Here