SALES & OPERATIONS PLANNING

Solution summary:

Sales & Operations Planning (S&OP) is an integrated business management process through which the executive leadership team continually achieves focus, alignment and synchronization amongst all the functions of the organization. The S&OP plan includes a common operational plan which guides all aspects of an organization to aim towards the achievement of the organization’s goals.

Included within the S&OP plan is an updated sales plan, demand plan, production plan, inventory plan, customer lead time/backlog plan, cost plan, new product development plan, strategic initiative plan and the resulting financial plan. When accomplished properly, the S&OP process enables a superior and effective supply chain management process.

KEY BENEFITS

  • Reduction in finished goods inventory
  • Improved forecast accuracy
  • Visibility of metrics across the organization
  • Improved customer service
  • Stable production rates
  • Faster and controlled new product introductions
  • Reduction in over-stock and obsolescence
  • Improved order fill ratio
  • Shorter customer lead times for make to order parts
  • Enhanced visibility into demand & supply across the company
  • Better promotional planning capabilities
  • Increased accuracy of budgeting & revenue forecasting