Enterprise Sales and Operations Planning

Improve performance by elevating and optimising the S&OP process to
financial outcomes

BMA » Solutions » Enterprise Sales and Operations Planning

Enterprise S&OP empowers companies to significantly improve performance by fully integrating financials with Sales and Operations Planning (S&OP). Using advanced analytics, what-ifs, and optimisation that consider financials as both constraints and objective function, Enterprise S&OP helps to optimise decision-making from multiple perspectives including:

  • Demand Shaping
  • Capacity Planning
  • Supply Planning
  • Inventory Planning & Customer Service Policy
  • Product Mix/Product Profitability
  • Financial Planning

With Enterprise S&OP, companies can create a full-fledged, forward-looking financial plan on a weekly basis, including: P&L, Balance Sheet, and Cash Flow. They can also identify critical areas where plans are short of targets; the root causes underlying any variance; and course correction actions that can be taken to bridge the gaps between target and plan, as well as opportunities to exceed target.

Enterprise S&OP provides multi-dimensional [composite] what-if analyses that enable users to quantify the impact of their planning decisions from both operational and financial viewpoints. Enterprise S&OP goes beyond traditional supply and demand balancing by evaluating the opportunity cost of constrained resources, maximising the marginal contribution of SKUs and trade spend, and optimising the trade-offs between customer service and inventory policies.

Who uses Enterprise S&OP?

  • Integrate with BMA's Trade Promotion Optimiser
  • Evaluate product mix/assortment and demand-shaping scenarios
  • Leverage familiar Microsoft tools including Excel® and SharePoint®
  • Optimise the supply plan to true profitability and costs
  • Understand the opportunity cost of constrained resources
  • Optimise asset utilisation in under-constrained scenarios
  • Quantify trade-offs from all perspectives, including overtime vs. build-ahead; customer service vs. inventory policy; increasing shifts vs. outsourcing, etc.
  • Forecast detailed unit costs and profitability by SKU, brand, facility, and process
  • Quantify marginal contribution (by SKU, region, and customer) based on opportunity costs and non-linear cost/price behaviours
  • Identify profitable growth opportunities and eliminate unprofitable activities
  • Automatically generate forward-looking P&Ls by business unit and by region

Benefits

  • Increase profitability by 1-5% of net revenues
  • Reduce non-raw materials cost of goods sales by 2-5%
  • Improve Working Capital by as much as 30%
  • Achieve ROI quickly through rapid implementation