Ask the Expert - Why is S&OP a Monthly Process?

DBM expert Doug Dedman is ready to answer your biggest questions regarding S&OP in the “Ask the Expert” series. With all the technology and advanced capabilities available today, companies are starting to run their S&OP process more often, on a weekly or even daily basis. They believe that this can help them react quickly and effectively to sudden changes or obstacles that they face. However, this is actually an ineffective way to manage the S&OP process. While the plan can be changed or edited in real-time, those changes won’t take place immediately. Depending on your supply chain, it can take weeks or months for operations to adjust to the new plan.

Rather, the most effective way businesses can deal with these changes is by running a monthly S&OP process. This enables the company to set parameters so that when challenges do come, teams know how to make decisions on the fly without changing the entire plan. A monthly S&OP process also allows companies to step back and look at the big picture of their process, and gives them a chance to refine their assumptions so they can improve plans going forward.

Leave your S&OP questions in the comments or write us an email at [email protected]

Like this video? Watch our other Ask the Expert videos in our playlist here:    • Ask the S&OP Expert  

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