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How is your interface between S&OP and S&OE?
Most companies have separate systems for their S&OP and S&OE processes. Their differences in approach range from planning horizons, the impacted decisions, granularity and frequency of updates. Using S&OP for day-to-day execution often leads to issues in noticing demand shifts, tuning production plans to actual demand, and adjusting material inflows accordingly.
While the purpose of S&OP is for medium to long term decisions such as capacity check and long lead time materials, it is often used to derive day-to-day dispatch plans, production schedules and material deliveries.
Planning and executing daily operations requires a much more agile system, which senses demand on an ongoing basis and adjusts dispatch, production and procurement plans accordingly.
S&OP and S&OE must be in a dynamic equilibrium, taking inputs from each other, as well as feeding into each other.
If you don’t design this dynamic equilibrium properly, the interface will continue to have issues leading to conflicts.