{"id":2937,"date":"2015-05-04T09:56:52","date_gmt":"2015-05-04T13:56:52","guid":{"rendered":"https:\/\/demand-planning.com\/?p=2937"},"modified":"2018-03-21T13:04:00","modified_gmt":"2018-03-21T17:04:00","slug":"aligning-and-managing-demand-for-new-products-using-sop","status":"publish","type":"post","link":"https:\/\/demand-planning.com\/2015\/05\/04\/aligning-and-managing-demand-for-new-products-using-sop\/","title":{"rendered":"Aligning and Managing Demand for New Products using S&OP"},"content":{"rendered":"

\"Oshkosh_Logo_-_2C\"<\/a><\/p>\n

 <\/p>\n

Many organizations have processes that define how new products will be conceived, developed, designed, and brought to market.\u00a0 Many organizations also have processes that define how they will integrate sales and operational plans to achieve their business objectives.\u00a0 These processes may be at varying levels of formality and maturity.\u00a0 However, it is not entirely uncommon for these two sets of processes to be at least out of alignment, and perhaps completely disjointed.<\/span><\/p>\n

Sometimes we just stop talking!\u00a0 More often we stop listening!\u00a0 But why?<\/p>\n

New Product Development (NPD) processes tend to be creative endeavors.\u00a0 Often they focus on \u201cwhat\u201d is being developed and why the customer has this need, so that we can better meet or exceed those customer\u2019s expectations \u2013 while \u201cwhen,\u201d \u201cwhere,\u201d and \u201chow much\u201d may receive less attention.\u00a0 Without a \u201cwhat,\u201d the rest won\u2019t matter!<\/p>\n

Sales and Operations Planning (S&OP)<\/strong><\/a> processes, on the other hand, tend to be analytical<\/strong><\/a> endeavors.\u00a0 Often they focus on those exact things that might be deemphasized in the NPD processes:\u00a0 \u201cwhen,\u201d \u201cwhere,\u201d and \u201chow much\u201d!\u00a0 This is done so that the customer\u2019s demand can be met when and where they need it and so the organization can meet its objectives.\u00a0 If the customer\u2019s time & quantity expectations aren\u2019t met or the organization cannot meet its objectives (which for most of us include financial needs, like profits) the rest won\u2019t matter!<\/p>\n

Of course, like the proverbial eye, which cannot say to the hand, \u201cI have no need of you;\u201d the NPD and S&OP processes serve difference constituencies and business needs: but they are in need of each other!\u00a0 Additionally, they become even more powerful tools for an organization and its leaders when they work together!\u00a0 The challenge is that they focus on different questions, with different key participants, to such a degree that in some organizations, they are nearly speaking a different language!<\/p>\n

Sometimes a good \u201ctranslator\u201d can help.\u00a0 This is where cross-pollination of teams can help.\u00a0 There are also multiple tools that may be natural outputs from each of these processes that can strengthen information linkages.\u00a0 These may include such tools as consolidated program schedules, multi-year product plans, and product lead time maps.\u00a0 It is also critical to identify and then track early indicators of uncertainty.\u00a0 These may include such things as project status, inventory positions, and market trend summaries.<\/p>\n

However, by far the largest key to success is to keep communicating \u2026 and more importantly, to keep listening! \u00a0I’ll be speaking in more detail on this topic at the upcoming APICS & IBF Best of the Best S&OP Conference<\/strong><\/a>. Perhaps, we’ll see you there.<\/p>\n

Dave Flory, CFPIM, CIRM, CPF, CSCP, PMP<\/strong>
\n Senior Scheduling Manager<\/strong>
\n JLG Industries, An Oshkosh Corporation Company<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

  Many organizations have processes that define how new products will be conceived, developed, designed, and brought to market.\u00a0 Many organizations also have processes that define how they will integrate sales and operational plans to achieve their business objectives.\u00a0 These processes may be at varying levels of formality and maturity.\u00a0 However, it is not entirely […]<\/p>\n","protected":false},"author":4603,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,383],"tags":[277,82,271,60,255,61,263,62,275,41,281,64,65,66,162,34,67,39,68,260,69,70,273,35,42,43,44,279,36,76,248,48,81,251,236,264,284,37,252,73,74,270,258,38,280],"class_list":{"0":"post-2937","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-forecasting-and-planning","7":"category-new-product-forecasting","8":"tag-analytics","9":"tag-apics","10":"tag-apo","11":"tag-best-practices","12":"tag-big-data","13":"tag-business-forecasting","14":"tag-certification","15":"tag-collaborative-forecasting","16":"tag-cpf","17":"tag-data-cleansing","18":"tag-data-mining","19":"tag-demand-forecast","20":"tag-demand-forecasting","21":"tag-demand-management","22":"tag-demand-planner","23":"tag-demand-planning","24":"tag-demand-planning-and-forecasting-conference","25":"tag-economic-forecasting","26":"tag-executive-sop","27":"tag-finance","28":"tag-forecast-accuracy","29":"tag-forecast-error","30":"tag-forecast-value-added","31":"tag-forecasting","32":"tag-forecasting-metrics","33":"tag-forecasting-models","34":"tag-forecasting-system","35":"tag-fundamentals","36":"tag-ibf","37":"tag-ibp","38":"tag-innovation","39":"tag-institute-of-business-forecasting-and-planning","40":"tag-inventory-management","41":"tag-marketing","42":"tag-metrics","43":"tag-new-products","44":"tag-predictive-analytics","45":"tag-sop","46":"tag-sales","47":"tag-sales-operations-planning","48":"tag-sales-forecasting","49":"tag-sap","50":"tag-siop","51":"tag-supply-chain","52":"tag-training"},"_links":{"self":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/2937"}],"collection":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/users\/4603"}],"replies":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/comments?post=2937"}],"version-history":[{"count":0,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/2937\/revisions"}],"wp:attachment":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media?parent=2937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/categories?post=2937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/tags?post=2937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}