Sales and Operational Planning

A large equipment manufacturer was struggling to deliver all the individual products required to complete large multi million dollar projects being shipped at the rate of two per month. A minor component worth a few hundred dollars could hold up the shipment and hence the progress payment of a large order. This resulted in rather large variances from monthly invoicing forecasts leading to unpredictable cash flow.

The company used Microsoft Dynamics Enterprise Resource Planning (ERP) to control production with a sales order consisting of thousands of production orders. Pivotal Data Solutions helped lead an internal team to create the processes and tools required to implement a Sales and Operational Planning (S&OP) process across the entire company. The processes and tools developed applied to transactions all the way from complex project sales order entry right through to control of global logistics. In a little over one month the team had visibility into the entire throughput of the company down to the individual item. Within three months the percentage of projects delivered in full and on time had risen from below 50% to over 80% and monthly progress payment invoicing variance had been all but eliminated. Monthly production and invoicing visibility stretched out as a result from three months to twelve months into the future.

Sales and Operational Planning is not just a piece of software or a set of reports. S&OP is a discipline that must be grown. You need to break your throughput down into manageable families and sub families, allocate responsibility for the various deliverables, get the required people together on a regular basis, and standardise reporting and terminology. Pivotal Data Solutions will help you put all the pieces in place, step by step, helping the organisation absorb the change along the way.

If you would like to get control over your business cash flow, invoicing and delivery promises feel free to contact us to arrangeĀ an obligation free discussion.