At Solventure, we have invented a new concept called the “Strategy-Driven S&OP”. It uses S&OP as your satellite navigation, steering your business towards value along strategically chosen financial targets. Though S&OP has long been claimed as an executive process, many S&OP processes lack the buy-in from the CEO and certainly from their board of directors. We strongly believe our Strategy-Driven S&OP is about to change this.
In our vision paper on the “Strategy-Driven S&OP” we have explained how “Strategic Benchmarking” can be used to derive strategy-dependent targets for key financial metrics, and make the S&OP process truly a means to an end. The Executive S&OP meeting is the de facto meeting where all of this comes together. In this vision paper, we will describe how we believe the Exec S&OP needs a broader, and more integrated set of metrics to truly understand where the business is heading and which actions to take depending on the course. If we want S&OP to be our satellite navigation, and the Exec S&OP to be truly “Executive”, we need to go beyond OTIF delivery performance and inventory turns as a discussion.