Demand Review Meetings – who is invited?
An effective S&OP process is critical for any business that wants to maximize its operations. But what exactly does it take to get there? A successful Sales & Operations Planning (S&OP) process requires participation from all team members, and a good starting point can be the Demand Review Meeting. This meeting provides an opportunity to develop an S&OP roadmap which sets out the different stages of implementation and outlines who is responsible, informed, consulted and accountable for each step.
RACI as a Guide
Once you have a clear understanding of your company’s structure and the tasks that need to be completed for S&OP implementation, you can use the RACI Model (Responsible, Accountable, Consulted, and Informed) to determine who should attend demand review meetings.
The individual or team responsible for ensuring the execution of the task is considered “Responsible”. This could include a VP of Sales, Demand Planning Manager, or other key personnel with ownership over tasks related to S&OP implementation. By bringing in these people during demand review meetings, organizations can ensure they have all necessary information and resources available for successful S&OP implementation.
The “Accountable” in the RACI model is responsible for the quality of the completed plan or task. They are ultimately held accountable for ensuring that all parts of the S&OP process have been completed correctly and to a high standard. This could include review of forecasts, customer demand projections, cost estimations, and availability of materials needed for production. In order for an S&OP roadmap to be successful, it is essential that this role has a deep understanding of the entire process and is able to make any necessary adjustments to ensure that the final product meets all expectations.
The “Consulted” role in the RACI model is responsible for providing insight into specific areas of expertise required for successful S&OP implementation. This could include representatives from sales and marketing teams who can provide accurate customer demand forecasts or representatives from finance and supply chain teams who can provide cost estimations and availability of materials needed for production.
The “Informed” role in the RACI model is responsible for keeping people apprised of progress and status updates throughout the S&OP process. This could include stakeholders from other departments who need to be kept abreast of any changes or decisions made during demand review meetings. It is imperative that these individuals have the foresight to identify any potential problems, as they are in a unique position to facilitate solutions and effectuate successful deployment of the S&OP roadmap.
Creating an S&OP Roadmap
By inviting individuals with varying backgrounds and expertise, organizations can create an S&OP roadmap that will better meet their overall objectives. By doing so, companies will create a culture of accountability, and can make better decisions with more accurate timelines throughout their supply chain operations while improving overall efficiency and performance.
Ultimately, with sufficient planning and organization, an effective S&OP process can be achieved which will greatly improve business performance and efficiency.