Interactive S&OP Playbook

Sales & Operations
Planning Process

A replicable S&OP governance framework — designed for mid-size FMCG distributors. Monthly cadence, cross-functional alignment, and data-driven decisions.

4-Week Governance Cycle RACI Matrix 9 KPI Definitions Meeting Cadences 5-Level Maturity Model Replicable Framework
01 — Governance Calendar

The Monthly S&OP Cycle

Four structured weeks. Four critical meetings. One aligned plan. Click each week to explore the agenda, participants, and key outputs.

WEEK
1
WEEK
2
WEEK
3
WEEK
4
Monthly S&OP
Cycle
WEEK 1Demand Review
📅 Meeting Day 5–7 | Duration: 90 min
  • Statistical forecast generation vs. consensus baseline
  • Commercial team adjustments: new listings, promotions, discontinuations
  • Customer input: confirmed POs, retailer range reviews
  • Output: Unconstrained demand plan (SKU × week × channel)
WEEK 2Supply Review
📅 Meeting Day 10–12 | Duration: 60 min
  • Capacity validation against unconstrained demand plan
  • Supplier lead time confirmations & import pipeline review
  • Inventory projection: WOS, DOS, buffer stock coverage
  • Output: Constrained supply plan with risk flags
WEEK 3Pre-S&OP Reconciliation
📅 Meeting Day 16–18 | Duration: 120 min
  • Gap analysis: demand vs. supply mismatch resolution
  • Financial reconciliation: revenue vs. budget bridge
  • Escalation list prep: unresolved gaps, risk scenarios
  • Output: Balanced plan + escalation dossier for exec review
WEEK 4Executive S&OP
📅 Meeting Day 22–24 | Duration: 90 min
  • Executive decisions on escalated gaps & risk trade-offs
  • Next 3-month rolling plan approval
  • KPI performance review vs. prior month targets
  • Output: Signed-off plan, action register, month-close
02 — Data Flow

S&OP Information Flow

How data moves from raw inputs through four functional layers to an executive decision. Hover each step for inputs & outputs.

📊
Data Inputs
Analytics / IT
Data Inputs POS sell-out, WMS inventory, ERP open orders, supplier lead time confirmations, CRM pipeline, financial actuals vs. budget.
🔮
Demand Planning
Planning Lead
Demand Planning Statistical baseline (12-week rolling), commercial overlays, promo uplifts, new product ramp curves. Output: unconstrained forecast.
🏭
Supply Planning
SC Manager
Supply Planning Capacity check, MOQ/lead time constraints, PO recommendation, safety stock calculation. Output: constrained supply plan.
⚖️
Pre-S&OP
Cross-Functional
Pre-S&OP Reconciliation Gap resolution, financial bridge (plan vs. budget), scenario modelling, escalation prep. Output: balanced plan + decision register.
👔
Exec S&OP
C-Suite / GM
Executive S&OP Strategic decisions, trade-off approvals, budget re-forecast alignment, risk acceptance. Duration: 90 min.
✅
Execution
Operations
Execution & Monitoring PO release, warehouse labour plans, distribution scheduling, weekly actuals tracking vs. approved plan.
Demand Inputs
📦 POS Sell-out (weekly)
🛒 Customer order book (confirmed)
📈 Promo calendar (marketing)
🆕 NPD pipeline (commercial)
🌍 Market intelligence (external)
Supply Inputs
🏭 Supplier confirmations (lead time)
📋 Open PO schedule (ERP)
🚢 In-transit inventory (3PL)
📊 WMS stock positions (daily)
⚠️ Quality hold / block stock (QA)
Financial Inputs
💰 Revenue actuals vs. budget
📉 Gross margin by SKU / channel
🏦 Working capital: DIO, DPO, DSO
🎯 Promotional ROI vs. plan
📊 Cost variance: freight, storage
Key Outputs
✅ Approved rolling 3-month plan
📋 Action register + owners + dates
🚦 Risk log with mitigation steps
💹 Revised financial forecast
📊 Updated KPI scorecard (monthly)
03 — Accountability

RACI Responsibility Matrix

Who is Responsible, Accountable, Consulted, or Informed across every S&OP activity.

Activity / Decision Planning Mgr SC Manager Commercial Dir Finance GM / VP Procurement
DEMAND PLANNING
Statistical forecast generationR–CI––
Commercial overlay & adjustmentC–RI––
Demand plan approval (Week 1)RCAII–
SUPPLY PLANNING
Supply plan developmentCR–I–C
Supplier confirmation & PO release–A–––R
Inventory target-setting (WOS/DOS)RACCI–
RECONCILIATION & FINANCIALS
Gap analysis & resolutionRRCCA–
Financial bridge (revenue vs. budget)C–CRA–
EXECUTIVE S&OP
Meeting facilitationRIIIA–
Trade-off decisions (allocation)CCCCR/A–
Rolling plan sign-offCCCCA–
R Responsible — does the work A Accountable — ultimate owner C Consulted — provides input I Informed — kept in the loop
04 — Performance Management

S&OP KPI Dashboard

Nine core metrics reviewed monthly. Targets benchmarked against GCC FMCG best-in-class. Hover each card for definition.

94.2%
OTIF Rate
Target: ≥ 95%
▼ 0.8% vs. target
87.6%
Forecast Accuracy
Target: ≥ 85%
▲ 2.6% above target
6.2 WOS
Weeks of Supply
Target: 5–8 WOS
✓ Within range
96.8%
Fill Rate
Target: ≥ 96%
▲ On target
42 days
DIO
Target: ≤ 45 days
▲ 3 days better
1.4%
Waste & Obsolescence
Target: ≤ 1.5%
▲ Within limit
+2.1%
Forecast Bias
Target: −3% to +3%
▲ Slightly over-forecast
91.5%
Supplier OTIF
Target: ≥ 92%
▼ 0.5% gap
95.1%
Customer Service Level
Target: ≥ 95%
▲ On target
05 — Capability Assessment

S&OP Maturity Model

Five levels from reactive firefighting to fully integrated IBP. Click each level to explore the capabilities, tools, and transformation requirements.

1 Reactive

Ad-hoc, silo'd, fire-fighting

2 Functional

Basic S&OP process exists

3 Integrated

Cross-functional cadence

4 Collaborative

External visibility, CPFR

5 IBP

Integrated Business Planning

Level 1 — Reactive
No formal process. Decisions driven by crises, gut feel, and individual heroes. High stock-outs, high waste, low trust between functions.

Characteristics

  • No monthly cadence
  • Spreadsheet chaos (100+ versions)
  • Demand = last year + 10%
  • Supply decisions daily / weekly

Upgrade Path to L2

  • Define a monthly meeting cadence
  • Appoint a planning owner
  • Agree on a single demand number
  • Basic KPI scorecard (OTIF, FA)
Level 2 — Functional
Basic S&OP exists but within silos. Demand and supply meetings happen but outputs aren't reconciled. Limited executive engagement.

Characteristics

  • Monthly demand & supply meetings
  • Statistical forecasting in Excel
  • Inventory targets exist but not enforced
  • Finance not connected to supply plan

Upgrade Path to L3

  • Integrate demand → supply → finance
  • Formal Pre-S&OP reconciliation step
  • Executive S&OP with decision authority
  • RACI and meeting templates
Level 3 — Integrated ← Current State (ANDS)
Cross-functional monthly cadence with demand, supply, finance, and executive alignment. Single version of truth. This playbook codifies Level 3.

Characteristics

  • 4-week governance calendar (this doc)
  • Consensus-based demand plan
  • Constrained supply plan
  • Financial bridge reviewed monthly
  • Rolling 3-month planning horizon

Upgrade Path to L4

  • Supplier collaboration portal (CPFR)
  • Customer POS data integration
  • External event calendar (seasonality DB)
  • Scenario planning (3 scenarios monthly)
Level 4 — Collaborative
External supply chain visibility. Supplier and customer data integrated. CPFR with key trading partners. Scenario planning as standard practice.

Characteristics

  • POS sell-out auto-fed to planning
  • Supplier capacity sharing (EDI/portal)
  • 3-scenario planning each cycle
  • 12-month rolling horizon

Upgrade Path to L5

  • Deploy IBP platform (SAP IBP / Kinaxis)
  • Integrate strategic planning cycles
  • One planning cycle for all horizons
  • Continuous planning (not just monthly)
Level 5 — Integrated Business Planning (IBP)
S&OP, strategic planning, and financial planning unified in one process. Real-time, AI-assisted. Used by Unilever, Nestlé, P&G regional hubs.

Characteristics

  • Single planning platform (SAP IBP / o9)
  • AI-driven demand sensing
  • Rolling 18–24 month horizon
  • Strategic portfolio & capex integrated

Enablers Required

  • ERP fully integrated (no manual feeds)
  • Dedicated IBP/planning platform
  • Planning CoE with advanced analytics
  • Executive sponsorship for data governance