OTIF (On-Time In-Full)
On-time and in-full orders ÷ total orders × 100%
↑ Higher is better
Scenario · Sales & Operations Planning (S&OP) · For the COO and production / supply-chain leaders
SAP Business One Production and Sales Coordination Solution: One Controlled Chain from Order to Delivery
Coordinate sales orders, procurement, production, inventory and delivery progress
SAP Business One runs MRP from sales orders or forecasts to calculate purchasing and production requirements and their required dates, with linked documents across procurement, production and inventory.
Plan accuracy↑
Production plan accuracy approaching 90%
Real result from MTC-delivered SAP Business One clients
Shipping efficiency↑
Over 50% improvement
Real result from MTC-delivered SAP Business One clients
Order progress→
Consolidated progress and exceptions from order through delivery
Sales & Operations Planning
SAP Business One Gold Partner MTC · Delivering since 2009 · 760 clients served
Order-to-delivery planning and coordination requirements
Separate sales, procurement, production and inventory plans
Sales, procurement, production and warehouse teams use separate spreadsheets and track progress independently.Management impact: Cross-functional dependencies and responsibility for exceptions are not visible in one plan.
Delivery commitments lack planning and progress data
Customer delivery dates depend on manual follow-up and unplanned changes to order priority.Management impact: On-time delivery performance and customer service are affected.
Material requirements and inventory plans are not aligned
Materials needed urgently haven’t arrived; materials not needed sit in the warehouse.Management impact: Production stoppages and dead stock happen simultaneously.
Plan changes lack a consistent rescheduling mechanism
Rush orders, order changes or equipment breakdowns require related purchasing and production plans to be rescheduled.Management impact: Manual rescheduling lacks consistent priorities and impact analysis.
Business Process and Controls
Sales-order, procurement, production and delivery document flow
The core is sales-order-driven MRP, rigidly linking procurement, production and inventory along document relationships — one change ripples through the whole chain.
Sales Order
MRP Run
↓ Auto-generates procurement / production recommendations
Procurement branch
Purchase Recommendation
Purchase Order
Goods Receipt
Stock +Production branch
Bill of Materials
Production Order
Issue for Production
Stock −Receipt from Production
Stock +↓ Flows back to inventory
Inventory
Delivery
Stock −Deliver to Customer
SAP Business One drives MRP from sales orders, automatically calculating “what to buy, what to make, and when.” Procurement, production and inventory are rigidly linked along the document flow — one change ripples through the whole chain, no one maintaining a separate spreadsheet.
Key control points in sales and production coordinationBOM accuracyAvailable inventory checkPlan-vs-actual trackingActual vs planned material usage variance
Participants: Sales / Customer Service, Production Planning, Shop Floor, Procurement, Warehouse / Logistics, Finance / Costing · Modules used:SalesMRP (Material Requirements Planning)ProductionProcurementInventory
Project Measures
S&OP outcomes and management measures
Order fulfilment cycle
Average (delivery date − order date)
↓ Lower is better
Plan attainment rate
Orders completed on plan ÷ planned orders × 100%
↑ Higher is better
Production lead time
Average (completion date − start date)
↓ Lower is better
Work-in-progress (WIP)
Period-end value of uncompleted production orders
↓ Reasonably low
| Core Metric | Formula | Target |
|---|---|---|
| OTIF (On-Time In-Full) | On-time and in-full orders ÷ total orders × 100% | ↑ Higher is better |
| Order fulfilment cycle | Average (delivery date − order date) | ↓ Lower is better |
| Plan attainment rate | Orders completed on plan ÷ planned orders × 100% | ↑ Higher is better |
| Production lead time | Average (completion date − start date) | ↓ Lower is better |
| Work-in-progress (WIP) | Period-end value of uncompleted production orders | ↓ Reasonably low |
Project Outcomes & Acceptance Measures
~90%
Production plan accuracy.
50%+ improvement
Shipping efficiency.
98%+
Picking accuracy — sales-side and procurement-side production more balanced.
57% shorter
Slow-moving item storage duration — dead stock and overstock reduced in tandem.
Major improvement
Data accuracy across forecasting, procurement, production and shipping records.
Implementation priorities for S&OP
S&OP management capabilities
Implementation priorities include order progress and exception management, coordination across procurement, production and inventory, and consistent planning and rescheduling after changes.
1
Order progress and exception management
Implementation scope: Connect documents and execution status from order through delivery, with a consolidated view of the current stage, exceptions and responsible teams for each order.
SAP Business One and extensions:
Order documents and progress
Acceptance focus: order progress, exceptions and responsible teams available in a consolidated view
2
Procurement, production and inventory coordination
Implementation scope: A sales order triggers MRP calculations for purchasing and production requirements. Document links keep procurement, production and inventory plans synchronized when demand changes.
SAP Business One and extensions:
MRP (Material Requirements Planning)Document linkage
Acceptance focus: material and capacity requirements calculated from current demand and planning parameters
3
Planning and rescheduling
Implementation scope: Use orders and forecasts to coordinate sales and production. When demand or capacity changes, rerun MRP and reschedule the affected purchasing and production activities.
SAP Business One and extensions:
MRP re-runCapacity & scheduling
Further improvement: plan changes are recalculated and reflected in the operating schedule
The processes described on this page are supported by standard SAP Business One functions
Related Cases
Production and sales coordination implementation outcomes
Smart Manufacturing
Make-to-order: sales orders drive MRP — procurement and production recommendations auto-generated.
View case
Agriculture & Food ProcessingShipping efficiency improved after procurement, production, inventory and delivery documents were connected.
View case
Equipment ManufacturingPlan attainment: plan vs actual tracked per order — deviations caught early.
View case
FAQ
Implementation and system requirements for S&OP
What’s the difference between S&OP and Integrated Finance & Operations?
S&OP links the operations chain — order, procurement, production, inventory to delivery — targeting visibility, coordination and on-time delivery. Integrated Finance & Operations links business to financial data. You can do them sequentially: link the operations chain first, and finance-ops integration becomes more solid.
What can SAP Business One’s MRP actually do?
SAP Business One drives MRP from sales orders (or forecasts), auto-calculating purchase recommendations, production recommendations and timing. Combined with capacity and scheduling, it can rerun when orders or materials change.
We’re high-mix low-volume / make-to-order — does MRP still apply?
Yes. SAP Business One supports both order-driven and forecast-driven modes. MTC configures MRP strategy and scheduling rules to match your order and production model.
How does SAP Business One identify delivery risks earlier?
Once the process is connected, order progress, available inventory and plan-versus-actual deviations are available throughout the order-to-delivery cycle, allowing shortages and schedule risks to be identified earlier.
How high can production plan accuracy get?
Depends on business scale and process complexity. Among MTC-delivered clients, production plan accuracy commonly approaches 90%, with shipping efficiency improving over 50%.
Order fulfilment and planning assessment
Leave your contact details and an MTC consultant will help you assess process gaps from order to delivery, delivery-risk controls, plan-attainment targets and implementation priorities.
- ✓Process assessment — where do order-to-delivery handoffs fail?
- ✓Delivery-risk controls — where are delays and shortages identified?
- ✓Plan-attainment targets — which planning measures should be included in acceptance?