The basic components of the Sales and Operations Planning (SOP) in the pharmaceutical industry are the commercial plan, the production plan (often called the industrial plan so as not to confuse it with the production program), coherence of these two plans, decisions and arbitrations, validation by the company of the resulting plans
However, the other functions of the company such as finance, studies / R & D / product development and HR will be involved in the process.
Let’s have a look now to the roles and responsibilities of the stakeholders in rolling out the monthly process of the Sales and Operations Planning in the pharmaceutical industry.
The sales and marketing department analyzes the sales over the past month: differences between actual orders and forecasts, indicators changes. It collects forecasts: market forecasts, customer forecasts, forecasts from sales managers. It lists the significant sales and marketing actions (promotions, etc.) and organizes these data: updates the sales forecasts and the sales action plan.
The industrial and purchasing department and the logistics or supply chain department analyze industrial plan over the past month: differences between actual and planned production, indicators changes. They collect manufacturing data: nomenclatures, load profiles, capacity evolutions (industrial projects such as new equipment, taking into account the actual capacities demonstrated by the tools, shutdown and maintenance plans, staff changes and leave …) internally as well as externally (suppliers).
These two directions take into account the updating of sales plan and simulate the updating of the industrial plan allowing to respect it (cf. following paragraph “From the commercial family to the production family”). They calculate global capacity by applying load profiles of production families, and update strategic or critical supply and sub-contracting requirements. They highlight variations in different management areas (firm / flexible / free), prepare adaptation scenarios and note the associated issues with these changes, the impacts of different scenarios and important changes.
In many companies, production families are different from commercial families: the com-A family is made up of percentages of items 1, 2, 5, 12 and the prod-I family includes different percentages of items 1, 3, 6.
In this case, the transformation of sales forecasts into production needs is often managed by family correspondence tables. But this system is not easy to manage with the available tools, and in practice, we often prefer to go through the article: sales forecasts in commercial families :
Concerning the ERP, we note the unsuitability of systems to the Sales and Operations Planning approach that requires a multidimensional approach.
The Sales and Operations Planning in the pharmaceutical industry is the planning level above the PMP (production master program). He plans further and with less detail.
The process facilitator, the commercial and marketing, industrial and purchasing departments meet as much as necessary in various meetings and consult the other actors. They review the data relevance especially those concerning variations and hard points. They consider scenarios of resources adaptation (means of production, outsourcing, schedules, hiring etc.) and demand adaptation scenarios (promotions, commercial action plan). They examine the impacts of different scenarios (financial, suppliers, etc.). Finally, they validate the hypothesis with the various functions of the company (financial management, studies / R & D / product development, HR).
Useful documents are circulated at the end of these meetings to allow arbitration and validation in industrial and commercial meetings in the commercial industry. They can describe several scenarios with the associated risks and their feasibility.
If enough prepared, it is a decision meeting (for example between two scenarios). It allows issuing within 24 hours of a IPC understood by all, validated and manageable. This facilitates the updating of other schedules (PMP, supply, etc.) and the realization, as requested, of actions to adapt capacities and commercial actions. The participants are: