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Risk Management and S&OP – new best friends!

Created by Andrea Walbert |

2022 will be a year even more unstable than the years before. Sources of inspiration for finding solutions...

I´m relucted to bring up the word "VUCA world", but 2022 is turning into a year which is even more unstable than the years before. Honestly, I did not foresee or even dream about this. But therefore, Risk Management must evolve from focusing on single incidents towards a holistic management approach to stabilize the demand & supply situation of the organization.

And sharing is caring, therefore today I am sharing some of my favorite S&OP sources of inspiration with you. Some of them very innovative, others more hands-on. Maybe you will find them useful to.

  • I'll start with Carol Ptak, Chad Smithand Dick Lingand their latest book "Adaptive Sales and Operations Planning: Aligning Operations, Tactics and Strategy to the Demands of the VUCA World". In this book, Dick Ling, the father of Sales and Operations Planning, teams up with Demand Driven thought leaders Carol Ptak and Chad Smith to introduce Adaptive Sales and Operations Planning, an effective bi-directional bridge between strategy and operations enabling adaptation at all levels of the organization in the VUCA world.
     
  • I also recommend the Appendix C in the above book, which deals with "Skill Buffers", written by Caroline Mondon. Here she speaks about the Demand Driven Skills Model, which allows visualization of where, in its own complex system of departments and workshops, a company must invest into human resources to protect its flow. The website www.themissinglinks.info has more information about this concept.
     
  • Doug Dedman, a thought-leader of 20 years in S&OP. In this LinkedIn Video he is discussing "Score Carding Your Executive S&OP Process". His key message: Before you get results, you need to be able to measure your progress and score carding your S&OP process can get you there. No big news, but he shows a very pragmatic approach and tools, how to score the process. I have read Doug's foreword in the S&OP book of Duncan McLeod (see next point) many years ago and I am following him ever since. I also like his hands-on articles, like this one about "The S&OP Meeting Scorecard: Measuring the Fundamentals of S&OP".
     
  • If you are about to start an S&OP process and believe in the power of visualization, you will like Duncan McLeod's book "Sales and Operations Planning - How To Run an S&OP Process Everyone Understands". I have it in my library for more than 5 years now and like to refer to it frequently, especially if people would like to see a comprehensive business case with helpful illustrations and an easy-to-understand story of a successful S&OP procdiess implementation explained step-by-step.

At PMI Production Management Institute, the month of April is generally a busy month for our Marketing department, as here we plan our public training calendar for the next year, and we are almost done with it. Also in 2023, we will offer workshops and trainings focusing on Risk Management, S&OP and Demand Driven concepts.

For more information visit our portfolio, register to our newsletter or follow us via LinkedIn to never miss interesting updates from PMI. And to go for the next step, let´s talk about your opportunities.

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Andrea Walbert