From April issue of NZ Manufacturer www.nzmanufacturer.co.nz

-Chris Foord and Natalie Russell, Argon & Co

In a manufacturing business, where supply chains intertwine and customer demands fluctuate, Sales & Operations Execution (S&OE) emerges as a pivotal force. S&OE, a dynamic process that bridges the gap between strategic planning and day-to-day operations, sees the rubber hit the road in a manufacturing enterprise.

At its core, S&OE entails aligning sales forecasts, production plans, and operational capabilities to meet customer demands efficiently while optimising resources. This collaborative process not only ensures smooth operations but also holds the key to unlocking productivity within the manufacturing realm.

S&OE is typically a weekly cross functional process to manage short term changes to the Sales & Operations Plan (S&OP). Whereas S&OP looks forward from 3 to 18-24 months, the purpose of the weekly S&OE cycle is to manage exceptions in the near term 1 to 13 week horizon.

Exceptions happen, for both good and not so good reasons, but you need react to them effectively and efficiently looking across the end-to-end supply chain. S&OE manages change through a controlled, collaborative process that seeks alignment to agreed business guidelines and parameters to deliver the best outcome for your customer and your business within the resources available to you.

It reduces noise, conflict, confusion and ultimately builds cross functional understanding and alignment.   

In essence, S&OE is the heartbeat of operational agility in manufacturing. It entails a granular examination of sales forecasts, production capacities, inventory levels, and distribution channels to synchronize the flow of goods from production to delivery.

By integrating data from various sources and leveraging advanced analytics, manufacturers gain real-time insights into market trends, demand patterns, and operational bottlenecks.

This enables them to fine-tune production schedules, allocate resources effectively, and swiftly adapt to changes in customer preferences or market dynamics.

A robust capability in S&OE lays the foundation for innovation within manufacturing enterprises. By fostering collaboration between sales, operations, and other functional areas, S&OE cultivates a culture of continuous improvement and experimentation.

Manufacturers can harness this collaborative spirit to streamline processes, optimize product designs, and explore new market opportunities.

Whether it’s adopting lean manufacturing principles, implementing just-in-time inventory practices, or embracing emerging technologies like automation and IoT, S&OE empowers organisations to innovate at every stage of the production cycle.

Moreover, S&OE serves as a catalyst for productivity enhancement across the manufacturing spectrum. By orchestrating seamless coordination between sales forecasts and production plans, S&OE minimises inefficiencies, reduces lead times, and maximises resource utilisation.

This not only improves operational performance but also drives cost savings and enhances profitability. With optimised production schedules and inventory levels, manufacturers can minimise waste, reduce excess inventory carrying costs, and improve overall resource utilisation.

Furthermore, S&OE enables manufacturers to enhance customer satisfaction and loyalty by delivering products on time and in full. By aligning production schedules with demand forecasts and ensuring adequate inventory levels, manufacturers can minimise stockouts, backorders, and delivery delays.

This enhances reliability and responsiveness, fostering stronger relationships with customers and enabling manufacturers to capture market share in a competitive landscape.

In today’s fast-paced and increasingly interconnected world, the importance of S&OE cannot be overstated. As supply chains become more complex and customer expectations continue to evolve, manufacturers must embrace S&OE as a strategic imperative rather than a mere operational function.

By investing in advanced technologies, data analytics capabilities, and cross-functional collaboration, manufacturers can strengthen their S&OE capabilities and unlock new levels of innovation and productivity.

In conclusion, Sales & Operations Execution is fundamental in the manufacturing industry. It empowers organisations to;

• synchronise sales forecasts with production plans,
• optimise resources,
• and deliver superior customer experiences

By embracing S&OE as a strategic priority, manufacturers can unlock innovation, drive productivity gains, and stay ahead of the competition in today’s rapidly evolving marketplace.