Actions

P1

Plan Supply Chain Operations

The collection of processes associated with developing a projection of the realizable throughput and revenue for current and future periods. This is generally based on the comparison of projected demand ("the forecast") and available resources. Available resources include inventories and commitments from suppliers, factories and other parties. The supply chain operations plan should recognize the constraints and opportunities from:

Certain supply chains may not operate Make processes and therefore may not require a (Make) Production Plan.

Alternative names include: Sales & Operations Planning* (S&OP), Government agencies generally refer to the Budget (instead of the Plan).

Notes

S&OP is generally broader than the pure Plan Supply Chain Operations process. Consensus dictates that S&OP includes Plan Source, Plan Make and Plan Deliver processes as well as the Demand forecasting process - the latter is classified as a Sales related process, but trending to be managed by supply chain organizations. Order Cycle Time Planning Frequency Order Fill Rate Cash Conversion Cycle Days Of Inventory Fixed Asset Turns Supply Chain Costs Cost Of Goods Sold Distribution Costs Sales & Operations Planning Forecast-to-Plan

Hierarchy

IDNameLevelx
PPlan1P
P1Plan Supply Chain Operations2P1
P101Gather Demand Forecast3P101
P102Validate Demand Forecast3P102
P103Gather Supply (Resources)3P103
P104Balance Supply & Demand3P104
P105Develop Supply Chain Plan3P105
P106Publish Supply Chain Plan3P106
P107Analyze Supply Chain Plan Deviations3P107

Metric(s)

IDNameLevelx
RS1Order Cycle Time1RS1
RS11Planning Frequency2RS11
RS2Order Fill Rate1RS2
CO1Supply Chain Costs1CO1
CO11Cost of Goods Sold2CO11
CO12Distribution Costs2CO12
AE1Cash Conversion Cycle1AE1
AE12Days of Inventory2AE12
AE2Fixed Asset Turns1AE2

Term(s)

IDNameClearx
F2PForecast-to-PlanF2P
S&OPSales & Operations PlanningS&OP
Plan Supply Chain Operations Plan 110000 2 Plan, Planning, S&OP, Supply Chain Development of the supply chain operations plan: Overall volume and revenue projections, gaps and corrective actions to achieve revenue goals