A formal integrated business planning process

Oracle Fusion Cloud Sales and Operations Planning (S&OP) enables continuous and forward-looking integrated business planning by profitably aligning product, demand, supply, workforce, and sales plans with operational and financial objectives from Oracle Cloud Enterprise Performance Management. It orchestrates the formal planning process, providing focused guidance for each step.

Orchestrate efficient process management

To help executives define and refine their objectives, the S&OP process starts off with the planning cycle. It combines reviews of product management, demand, and supply with a focus on future actions, and aligns operating plans with financial goals. By assigning and monitoring tasks and actions to stakeholders, this view enforces process discipline and time bound decision making.

Use built-in templates for detailed reviews and analysis

You can use configurable templates to engage stakeholders in the five standard integrated business planning cycle reviews. These include the Product Review, Demand Review, Supply Review, Financial Review, and Executive Review. For example, the product management team can access the Product Review summary to analyze a company’s product portfolio in the context of their financial forecast and growth goals.

The unified data model provides a single view for all participants, taking the pain away from having to compile fragmented data from many systems.

Monitor product lifecycle phases

Within the Product Review, you can perform a cross-functional review of new products and the life cycle of maturing products. It highlights the net revenue and profitability impact of new product launches, while managing inventory obsolescence for items that are being phased out.

Weigh demand trade-offs

To help you make informed strategic decisions on future demand, Oracle S&OP’s Demand Review compares the current operational forecast with new financial, sales and marketing forecasts from Oracle Cloud Enterprise Performance Management. You can analyze forecasts for new and existing products to reach stakeholder consensus on the future demand plan. Oracle Demand Management and Supply Planning can use the consensus plan as the starting point for tactical planning.

Review supply feasibility

The Supply Review analyzes supply constraints that could limit your ability to satisfy new demand. You can simulate for the revenue at risk due to changes, identify bottlenecks, and develop corresponding contingency plans.

Leverage your resources

The Supply Review also analyses resource utilization and resource availability to reveal spare capacity and bottlenecks. Bills of resources select the critical components, subassemblies and resources for aggregate planning. By eliminating non-essential detail and computational burden, they accelerate plan simulations and focus attention on strategic capacity and manpower plans.

Simulate the financial impact of capacity changes

The Financial Review phase evaluates the new S&OP plan for financial performance. Oracle S&OP helps validate whether new investments on capacity augmentation are financially viable, evaluating their ability to meet revenue targets, preserve margins, and improve returns on invested capital.

Respond to changing business conditions

You can generate alternative plans collaboratively with stakeholders to respond to changing conditions. These include demand volatility, price and cost changes, changes in bills of resources, capacities, lead times and other disruptions. Detailed plan comparisons allow you to review the pros and cons of a new S&OP plan relative to the baseline plan.

IBPX made robust and simple

Oracle S&OP integrates business planning and execution by converging strategic and financial plans, S&OP plans, and their execution on congruent enterprise goals, such as market growth, profitability and cost. Executives get a clear view of operations, so they can collaborate on actionable plans to enter new markets, stimulate growth, enhance margins, or reduce costs.