Many organizations lack an effective S&OP process when it’s crucial to have one.
Even when they do have one, it’s often not providing the full benefits.
Watch the video to uncover the main reason why S&OP often falls short.
Too Many Meetings, Not Enough Decisions
One of the most common reasons S&OP processes fail is because there are too many meetings—but not the right kind. S&OP meetings should be decision-making forums, not long-winded discussions. The key is preparation. When participants arrive well-prepared with data, analysis, and clear recommendations, decisions can be made confidently and efficiently.
We’ve seen clients whose S&OP meetings last three to four hours. That’s a lot of discussion but very few decisions. A well-structured S&OP meeting, as we detail in our 12 Success Factors video, avoids this problem. Several of these success factors specifically address how to turn meetings into true decision-making forums, focusing on preparation, clarity, and accountability.
Designed for the Executive Team
Remember, S&OP is primarily for the head of the business—MDs, CEOs, and the senior executive team. It’s about presenting a decision-ready management deck:
- The data is clear.
- The issue is understood.
- The recommendation makes sense and is financially validated.
The executive team can then quickly decide: endorse, disagree, or defer. Deferral is valid when more analysis or alternatives need exploration—but it should be intentional, not caused by poor preparation or a lack of clarity.
S&OP meetings must focus on outcomes, not endless debates or incomplete discussions. Proper preparation ensures alignment between teams, highlights priorities, and resolves strategic challenges effectively. It also fosters confidence in the process, ensuring everyone involved understands their role in achieving desired outcomes. The result? Faster decisions, improved collaboration, and streamlined execution.
When done right, S&OP drives operational efficiency, improves forecasting, and aligns business strategy with actionable decisions.
Ultimately, the goal is simple: shorter, sharper meetings that deliver confident decisions and drive measurable business outcomes. If your S&OP isn’t doing this, it’s time to fix it and make the process work for your business.
Related articles on this topic have appeared throughout our website, check them out:
- Sales and Operations Planning: The Interpersonal Element
- Give Your Operations A Productivity Boost – Increase Your Bottom Line Profit
- Sales & Operations Planning (S&OP) – The Greatest Success Factor
- S&OP 12 Key Success Factors
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated February 08, 2023, under the title “S&OP: Why It Fails“.
