What Roles Do You Need for Effective S&OP?
- Doug Dedman
- 2 days ago
- 3 min read
Nearly 50% of employees across all sectors currently lack role clarity in the workplace, according to Effectory. This is alarmingly high, as low role clarity is directly related to poor efficiency within a company. Without a structured system like the RACI model, it can be very difficult to know who is responsible or accountable for each task in the Sales and Operations Planning (S&OP) process.
The RACI model is a tool we use to clarify team roles and responsibilities across tasks. It categorizes each role as Responsible, Accountable, Consulted, or Informed. Implementing RACI in your business will improve communication and clarity, making it essential for maximizing productivity. Here are 9 key roles and responsibilities necessary for a successful S&OP process, using the first half of the RACI model.
Senior Executive:
The senior executive plays a pivotal role in the S&OP process. They are responsible for creating the vision and ensuring its implementation. As the chair of the monthly S&OP meeting, they review plans, ask tough questions, and make decisions where required. Their cross-functional oversight ensures alignment of the master plan across demand, supply, finance, and other functions.
RACI:
Accountable: Effectiveness of S&OP Process, Approval of Monthly S&OP Plan, Buffer Targets, Holding Team to Their Accountabilities
VP of Sales and/or Marketing:
The VP of Sales and/or Marketing owns the unconstrained demand plan and is responsible for implementing the constrained demand plan. They shape demand through marketing strategies, manage allocations, and co-own the constrained shipping plan. This role involves holding team members accountable for demand plan accuracy and participating in various S&OP meetings: demand pre-S&OP meeting, pre-S&OP meeting, and executive S&OP meeting.
RACI:
Accountable: Demand Plan
Responsible: Holding the Sales Team Accountable
VP of Operations:
The VP of Operations develops the supply plan during the Supply Pre-S&OP meetings and finalizes it in the Pre-S&OP meetings. They co-own the constrained shipping plan and hold team members accountable for supply plan accuracy. In some organizations, this role may be filled by the VP of Supply Chain.
RACI:
Accountable: Supply Plan
Responsible: Setting Buffer Targets and Holding the Production Team Accountable
S&OP Coordinator
The S&OP Coordinator organizes and attends S&OP meetings, drives process improvement, coordinates resources, and manages follow-up. Initially acting as the arms and feet for senior executives, they must be able to work with operations, sales, finance, and coordinate multiple resources effectively.
RACI:
Accountable: Data Collection for Month End Close
Responsible: Effectiveness of S&OP Process, Approval of Monthly S&OP Plan, Supply Plan
VP of Supply Chain/Procurement
The VP of Supply Chain/Procurement owns supply constraints for the receipt plan and manages supply chain risks. They play a crucial role in ensuring the smooth flow of materials and mitigating risks that could impact the supply chain.
RACI:
Responsible: Supply Plan, Holding Procurement Team Accountable
CFO or VP of Finance
The CFO or VP of Finance links the S&OP process to the budget and monthly financial plans. Their involvement ensures that financial considerations are integrated into the planning process, providing a holistic view of the organization's performance.
RACI:
Accountable: S&OP Budget
VP of Engineering/Product Management
The VP of Engineering/Product Management assesses new product impacts and engineering resource impacts on the S&OP process. They ensure that product development aligns with the overall business strategy and resource availability.
RACI:
Responsible: Informing the Demand Plan
Demand Planner
The Demand Planner manages the development of the unconstrained demand plan, coordinates the gathering of demand plan inputs, and develops demand planning methodology. They organize and manage Demand Pre-S&OP meetings and drive demand planning process improvement.
RACI:
Responsible: Data Collection for Month End Close, Demand Plan, Effectiveness of S&OP process
IT Support
IT support is essential for data gathering, providing tools for data management and analysis, and ensuring linkages to other processes such as the master schedule. Their role is to facilitate the technological aspects of the S&OP process.
Professional Support for Your S&OP Journey
Does your company need help defining/adding S&OP roles or enhancing your overall S&OP process? We offer professional services that include coaching, guidance, and support to ensure you get the most out of your S&OP journey. Reach out to us today to learn how we can help your team define roles and responsibilities and make the best strategic decisions with clarity!
At DBM Systems, our consultants have over 20 years of experience providing S&OP leadership to businesses worldwide. We equip teams with coaching and the tools to quickly start and sustainably run an effective S&OP process. Learn about our process and unlock the power of S&OP in your organization.
