The S&OP - sales and operations planning - manager is first and foremost an expert in strategic sales and operations planning. This job, which is crucial to the supply chain, is mainly carried out in large industrial companies. It's one of the jobs that's in short supply. So what are the main issues surrounding this job? In concrete terms, what are the tasks of the S&OP manager? What skills do you need to get into the job? What are the attractions and constraints? Find out in this job description.
From health constraints to geopolitical uncertainties, the supply chain and its professions have undergone profound changes in recent years. Some are talking about a revolution in practices, a change in organisational models, a reorientation of investments... The supply chain must reconcile its modernisation, the response to market expectations and the company's performance objectives. And now, more than ever, this requires a strategic vision of the business and processes to achieve sales targets, going beyond the physical organisation of logistics and transport.
This is precisely the core business of the S&OP manager. A supply chain professional who carries on his shoulders a double promise. On the one hand, of overall performance and growth. On the other, anticipating risks and managing crises. So it's hardly surprising: this is a particularly sought-after profile within major international industrial groups. But it can also be an invaluable asset for smaller companies looking to scale up.
[S&OP Manager - Recruitment trends]
"The industrial constraints and market versatility with which companies are confronted, combined with strong demands in terms of product availability, stock reduction and supply lead times, are leading them to create the position of S&OP manager. This is becoming increasingly apparent or more pronounced, and recruiters' demands in terms of the profiles they are looking for are helping to create tension in this market," analyses recruitment agency Michael Page. This is confirmed by its colleague Hays: the S&OP manager is in fact ranked in the top ten. top 3 shortage occupations in the supply chain.
What are the main tasks of the S&OP manager?
The S&OP manager works on drawing up the industrial and commercial plan (PIC), also known as sales and operations planning. This is a collaborative monthly decision-making process which enables the company tobalance sales, internal capacity and financial objectives.
A specialist in forecasting and coordination
He/she coordinates the monthly S&OP process, acting as a facilitator. To do this, he/she works in project mode with various departments within the company: sales, marketing, production, supply chain, finance, etc., both in France and internationally.
The objective of the S&OP manager is to forecast production in order to anticipate resource requirements and guarantee product availability.
In practical terms, the S&OP manager is responsible for collecting and making available internally sales forecasts for a range of products (short, medium and long term) for one or more factories and in one or more countries. These forecasts are used to set up the production lines needed in the factory to guarantee product availability and optimise stock levels.
Analyse variances between forecasts and results
It also ensures that forecasts are implemented throughout the chain, right up to delivery to the customer. In this capacity, he analyses the differences between actual results and forecast results and proposes solutions to reduce these gaps. It also refines its forecasts using additional information (seasonality, product life cycle, marketing plans, sales reports, etc.).
A wide range of assignments
Among other tasks, it may be required to :
- ensuring the availability of components for product launches
- lead projects for the continuous improvement of sales forecasts and demand planning
- manage stocks
- optimise sales forecasting and flow management tools
- lead meetings within his scope (sales, flows, S&OP)
These tasks require him to be involved in the various levels of industrial planning.
Different levels of industrial planning: from S&OP to MRP
An industrial planning process in a company's production management enables human and material resources to be optimised to meet business objectives effectively. Industrial planning is carried out in stages with a vision ranging from the long term to the short term.
1/ The Industrial and Commercial Plan (ICP)
It is also known as the sales and operations planning (S&OP). It's a strategic plan with a forward-looking view of sales to long term. It therefore reflects what the company 'wants' to produce, taking into account sales forecasts, the market and the economic situation. It provides a clear vision of the objectives to be met by all departments, and triggers the various levels of planning.
This is the foundation of the planning process.
2/ Master Production Plan (MPP)
It uses the SOP to plan production at medium term. It provides greater precision in the production variables. It can also be used to define priorities, such as :
- What to produce first?
- How often?
3/ The workload plan (WPP)
It is used to manage production and resources in real time, in other words to short-term.
It ensures that production capacity matches the workload.
4/ MRP (manufacturing resource planning)
Also known as CBN (net requirements calculation), it is based on the master production plan. It corresponds to a the more tactical aspect of planning: managing production. This involves assessing the raw material and component requirements needed to cover gross needs, as well as the stock situation to identify net needs.
net requirements = gross requirements - stock
MRP ensures that delivery deadlines are met, that raw materials are fully available for production and that costs are reduced.
Integrating a CSR dimension into the S&OP process
Act quickly and concretely to reduce carbon emissions, waste and energy consumption. This is one of the challenges facing the modern supply chain. Indeed, the company's strategic objectives are tending to move closer to the major environmental issues. Firstly, from an economic perspective (energy costs, for example). Then, under the impetus of regulations. Then, possibly, in the light of its CSR (corporate social responsibility) commitments. For S&OP managers, this means integrating a CSR dimension into all their activities. And, on a practical level, including the CSR team in the various stages of the S&OP process.
[Note]
The S&OP manager may also have managerial tasks. They may manage a team of several people. The team generally consists of demand planners and supply planners.
[Also read]
What training is needed to become an S&0P manager?
To become an S&OP manager, you need a solid education in supply chain management, management, marketing or industrial engineering. A degree at bac +4 or bac +5 level, such as a Master's degree in supply chain management, business or engineeringThis will be particularly appreciated by recruiters. In addition, several years' experience in planning, production or sales will be a useful complement to this profile.
Successful management experience combined with cross-disciplinary skills in logistics or production management can also lead to this type of position. In this case, the ideal solution is to add to your experience through continuing training, in particular by opting for a certification course.
[Training reflex]
Optimising the supply chain and reducing logistics costs
Training for :
- rapidly identify possible levers for optimising the supply chain
- learn about effective management tools to improve the performance of logistics operations
Project management, the fundamentals
Our aim? To ensure that your projects run smoothly, in line with objectives, deadlines, costs and quality criteria.
The bonus: techniques illustrated by a practical case study that serves as a common thread running through the various phases of a project.
Managing and optimising supplies and stocks
What are the most useful methods for effective stock management?
On the agenda: reducing the value of average stock, improving the service rate, putting in place a performance management and measurement system...
A course designed to help you understand and master the fundamental mechanisms of MRP in the wider context of the supply chain: calculating requirements and scheduling are just some of the topics on the programme.
Bonus: lots of practical work.
What skills do you need?
TECHNICAL SKILLS (hard skills)
- mastery of SAP-type ERP systems and the main logistics flows
- advanced statistical skills
- proficiency in computer software
- mastery of stock management techniques and tools
- mastery of cross-functional management and project management methods
- level of professional English
BEHAVIOURAL AND RELATIONAL SKILLS (soft skills)
- open-mindedness and curiosity
- excellent interpersonal skills, diplomacy
- ability to analyse and summarise
- a taste for teamwork
- ability to bring people together, persuasive skills
- good stress management
How much does an S&OP manager earn?
Salaries and salary progression for S&OP managers vary according to experience. For beginners, the range is €45,000 to €60,000 gross per annum. More experienced profiles, with around 5 years' experience, can expect a salary of between €70,000 and €80,000 gross per annum. The average gross annual salary is around €55,000.
What are its development prospects?
S&OP managers can progress to positions such as purchasing manager, supply chain manager or operations manager. They may also be entrusted with a broader scope (products and/or countries). Or they could move into sales or customer service.
What are the attractions and constraints of the job of S&OP manager?
- Attractive remuneration
- Good job prospects
- Numerous internal interactions
- Career development prospects
- Strong pressure linked to the strategic dimension of the position
- Variable and extended working hours, frequent travel to production sites
